To encash the popularity of e-commerce websites, Tata Value Homes the subsidiary of Tata Homes has entered into a strategic partnership with India's second largest online retailer by sales Snapdeal, to sell houses through the online marketplace model.
The development marks the first time an e-commerce history that any company has tied up with a real estate venture. "We saw an opportunity to provide to our customers the ability to buy great houses at great prices from a quality company like Tata Value Homes, and we went for it," said Kunal Bahl, cofounder and chief executive, Snapdeal.
As part of the partnership, about 1,000 homes across projects in cities like Mumbai, Pune, Ahmedabad, Bangalore and Chennai will be put up for sale on Snapdeal. Ranging from 1 BHK to 3 BHK, the houses are priced between Rs 18-70 lakh. "According to reports, one in every two online real estate searches is to buy property and there is a $ 43 billion market opportunity here.
"We started selling homes through our own website last year in December and have already sold over 600 units. This partnership will help us take that to the next level," said Tata Housing Development Company Senior Vice President Marketing and Sales A Harikesh Upon possession of the house, customers buying the house through Snapdeal will get Rs 10,000 per month for a year as an assured rent (whether they stay on premise or lease it out) as part of the deal.
Customers will have to register themselves on Snapdeal before making a booking, which opens on August 28 Consumers trust our platform, and if something goes wrong, we will fix it," said Bahl. The announcement also comes weeks after media reports stated that Ratan Tata, chairman emeritus of Tata Sons, was close to investing in New Delhi-based Snapdeal in his personal capacity, a transaction that could also see of the company's early-stage investors exit.
However, the booking amount is not refundable in case the customer does not buy the house. Harikesh said the company also plans to launch new projects in Kolkata and Delhi-NCR before March 2015, which may also get added to the deal.