Noida: Magicbricks, India’s No.1 property site, today announced a robust growth of 74% YoY in Q2 FY’19 with revenues touching Rs.55 crore as it stayed on course for a high double digit breakout growth in the category. The performance in Q2FY’19 comes on the backdrop of its reported growth in Q1FY’19 when revenues had grown by 48% YOY to touch Rs.47.5 crore. The company also reported that the Magicbricks android app touched five million downloads, making it the only one in its category to achieve the milestone.
Strong performance in consecutive quarters puts the company on a high growth trajectory in the current financial year and also signals early signs of the much awaited turnaround for the real estate industry that witnessed a slow-down in the last three years. The performance in Q2 FY’19 was attributed by the company to a combination of factors like a substantial increase and traffic & searches, gains in share of wallet in the developer segment ahead of the festive season, successful high-impact and exclusive digital marketing campaigns for select customers, the launch of an exclusive deals only website, E-auctions and Certified Agents programme. These key factors underpinned the performance across most key metrics like traffic, supply and Revenue Per Advertiser (ARPA), consolidating Magicbricks’ position as the preferred portal for buyers and sellers in the industry.
Commenting on the Q2 FY’19 performance, Mr. Sudhir Pai, CEO, Magicbricks, said: “Our Q2 FY’19 figures suggests that we are on a strong growth trajectory in this financial year and also substantiates the fact that the industry is finally making a turn around. We have leveraged our scale to cover the market holistically and that has helped us in gaining significant leadership across multiple key metrics as we have continued to widen our gap with the rest of our competitors. Magicbricks now leads its nearest competitor by over 16% in properties listed for sale and about 58% in properties listed for rent. The icing on the cake was Magicbricks app touching the magical five million app downloads mark.”
The successful execution of high-impact and exclusive digital marketing campaigns for top-developers pan-India indicates that Magicbricks has clearly emerged as the preferred online marketing channel for the industry. As per company release, these campaigns were designed to cater to specific promotional requirement – new launches or driving transactions – of developers and have been immensely successful in delivering results to the developers ahead of the festive season. These high impact campaigns not only helped developers sharpen their media plan but also optimise their ROI in their bid to grab more customer eyeballs.
Apart from taking a substantial leap in revenues, Magicbricks also leads in terms of traffic and registered buyers. According to the widely used third party tracking source Comscore, the brand had a traffic market share of 48% of the mobile traffic whereas it had 41% market share of the website traffic as on exit August in terms of Total Unique Visitors. It achieved a run-rate of 57 million visits, according to the company.
The company also reported that it now enjoys more than 60% of all online listings in India as a result of its efforts in covering the market holistically which has paid rich dividends in terms of significant rise in paid sellers on the platform. As on 30th September, Magicbricks hosted over 1 million active properties and over 55,000 properties are being added daily. The company reported that during the quarter it had over 50,000 active paid sellers, gaining a 10% sequential quarter-on-quarter growth. Out of these 50,000 active paid sellers, 3000 were developers, 15000 were brokers and the rest 32,000 were paying individual sellers or landlords.
Mr. Pai further said that the consistent rise in number of paid sellers has been made possible since the market has responded positively to a slew of successful innovations and also due to relaxations in CLSS limit that increased the MIG inventory in both Tier 1 and 2 cities which resulted in much more properties becoming available to buyers in this category. This was also reflected in rise in property searches on Magicbricks that jumped by 50%, with cities like Bangalore, Delhi witnessing a spike in searches by 60% and 65% respectively.
This increase in price limit opened up a significant large percentage of properties in most cities for homebuyers. In cities with low average price (Rs/sq.ft) like Noida, Greater Noida, Kolkata, Hyderabad and Ghaziabad, there is an average 96% increase in the eligible properties in MIG segment. Tier 2 cities like Jaipur, Mohali, Lucknow and Chandigarh have also seen an increase in inventory under CLSS.
“Magicbricks is now the most preferred channel of advertisements and customer acquisition for developers, brokers and for individual sellers. This has been made possible due to Magicbricks’ scale & deeper penetration into the market. We had great response from our dedicated website for deals, from both the developers and buyers. Looking for offers and deals on e-commerce platforms before buying anything has become a norm for consumers and we feel that home buying shouldn’t be any different. We have tried to get all the best deals under one umbrella to ease the life of the customer,” said Mr. Pai.