Metroplots: Chennai based Real Estate Startup on an Expansion Spree

The Indian Real Estate Market

The average ticket size varies from market to market and has seen a constant rise in the past couple of years due to steady growth in the markets.

Considering a conservative market like Chennai, which has mostly end –users, the average ticket size which used to be around 40-50 lacs a couple of years back, has increased to 50-60 lacs. This goes in line with the steady growth that this market has been witnessing. The same cannot be said about Bangalore as it comprises of a good mix of end-users and investors who have been fuelling the real estate market growth. The average ticket size here could be anywhere between 70lacs to 1.2Cr. Coming to the investor rich NCR market the ticket size is obviously high and could be anywhere between 1.5Cr to 5Cr.

NCR, however, is dominated by investors who seek immediate returns (as immediate as 3-6 months). So, a majority of NCR investors relate property investments to trading and bet heavily on phenomenal price increase by builders so that they can re-sell their properties. This does not happen much in other cities and hence the property markets are still healthy.

A lot of developments now are being funded by PE and there is a rising confidence in the Real Estate markets now. Even 6 months ago, there was an excess supply and complete lack of demand. This had created a price dip/stagnation in certain cities which has led to the gradual increase in property buying. Decrease in home loan rates by 0.25-0.50% played a significant role in the rise too. Their statistics shows that Bangalore, Pune and Chennai are seeing a bigger demand in property buying than the NCR or Mumbai.

Metroplots Expansion Plans

Metroplots, a Chennai based online property advisory firm, having offices in Chennai, Bangalore and Delhi /NCR is on an expansion spree. Metroplots was launched in August 2009, and since then, it has been funded twice. The company has announced an ambitious plan to expand into other major cities in India: Gurgaon, Bangalore, Chennai, Hyderabad, Pune, Kolkata, Mumbai, Ahmedabad, Jaipur, Noida, Coimbatore, Chandigarh, Lucknow, Bhubaneswar, Indore, Ludhiana, Faridabad, Sohna, Dharuhera, Kasauli, Mohali, Shimla, Ambala, Cochin and Trichur.

The company holds a unique position in the Indian real estate market with its understanding of the local markets and client specific needs. One can assess this from the 400 completed deals that the company has under its belt, along with a strong working relation that it shares with more than 100 builders across 3 cities. It is after the success that the company witnessed in 3 major markets of Chennai, Bangalore and NCR, that Metroplots.com has decided to enter 20 more cities as well.

As part of the expansion spree, Metroplots is going to further the growth plans by operating in Tier 2 cities as well. Their primary research has revealed that Tier 2 cities in India are fast becoming investment destinations for NRIs and property investors. Looking at the current real estate scenario, it can be safely said that realty sector in Tier 1 cities have reached a saturation point, hence the investors see tier 2 cities as attractive investment destinations.

“Commercial real estate is inundated with burgeoning investments, so taking our expertise of client handling we intend to commercial division too Pan India offering them the similar comfort and class of real estate investments,” says Jijo Mathew, Real Estate Division Head, Metroplots.

Expanding Cities

“Every investor has realized the need to invest in outskirts of a city as the returns can be unbelievable in 5-7 years in developing outskirts. The budgets are low, returns are high and hence everyone wants to be part of this growth. Investors are maxing out their home loan eligibility to get their investments in at the right time. There is a small hesitation, however, amongst people who seek immediate returns.”

In order to fuel its current expansion plans, Metroplots is also on a head hunting spree, and is on a look out for ambitious career seekers to be a part of the expansion drive.

Startups-Entrepreneurs interested in Metroplots can check their website. Also, startups facing hiring troubles should certainly check out YourStory’s Job Board!