Indian proptech firm Square Yards bets on metaverse to tap GCC real estate market

Square Yards, an India-based proptech firm, is betting on the metaverse to drive the real estate market in the GCC (Gulf Cooperation Council) region. 

The company launched its 3D metaverse platform in Dubai in August to facilitate interactive and experiential visualisation using technologies such as 3D, artificial intelligence, virtual reality, and augmented reality. 

“Our proprietary AI uses satellite imagery and photogrammetry data as inputs and converts the entire urban landscape of the built world of the real estate property into 3D,” explains Kanika Gupta Shori, Co-founder, Square Yards. “This allows users to visualise and walk around the space as an avatar.” 

According to Kanika, the Middle East, especially Dubai, is in the “thick of a metaverse revolution” and is setting the pitch for its global adoption. Square Yards is keen on investing in the metaverse in GCC, as well as exploring it in markets such as India, Canada, and Australia. 

Business in GCC 

GCC is a growing market for Square Yards, which offers a tech platform that connects buyers with real estate developers, agents, and financial firms to ease the process of buying real estate.

Square Yards, which is based in Gurugram, India, was set up in 2014 with the objective of addressing the gaps in the Indian real estate market. A year later, the firm expanded to Dubai to cater to the growing real estate demand among the NRI populace in the region. 

Gradually, the company spread across the GCC region, establishing its business in Qatar, Oman, Kuwait, Bahrain, and Saudi Arabia.

Initially, the platform facilitated real estate investment deals for prospective NRI investors and buyers. Later, it ventured into the off-plan business segment and began catering to Gulf natives and foreigners in the UAE.

In the Middle East, Square Yards facilitates over 2,000 transactions annually on its platform. It competes with players such as Nakheel Properties, Nomad Homes, Aldar, Property Finder, Emerging Markets Property Group, Deyaar, and Husky in the UAE. 

The company’s experience in Indian real estate has helped it navigate the GCC landscape. The founders of Square Yards attribute it to the region’s familiarity with large organised players. 

Market opportunities

The UAE commercial real estate market is expected to grow at a CAGR of 6% during 2022-2027, according to a report by Research and Markets.

The report noted that the UAE real estate market is fragmented, with the presence of a number of players and strong growth potential. Evolving tech solutions are driving increased real estate transactions and better management of real estate assets in the UAE, it added. 

The UAE residential real estate market is expected to register a CAGR of over 8% during 2022-2027, notes a report by Mordor Intelligence. 

According to Future Market Insights, the global property tech market in 2022 was valued at $18.2 billion. It is expected to grow at a CAGR of 16.8% during 2022-2032, driven by innovative tech solutions and services.

What the platform does

Square Yards' aim is to facilitate an organised value chain, right from search and discovery, transactions, home loans, interiors, and rentals to property management and post-sales services, says Kanika. 

The platform offers services in the areas of real estate, mortgages, and interiors. 

In real estate, Square Yards facilitates the sale of new properties developed by property developers to property buyers. It charges a transaction fee (brokerage) to the property developer, as a percentage of the total sale consideration of the property.

In the mortgage segment, it facilitates disbursals of home loans, loans against property, business loans, and personal loans. The revenue mortgage business comes from transaction fees charged to the bank or financial institution as a percentage of the total value of loans disbursed (or total insurance premium). 

In the interior segment, the platform provides services related to interior design and home renovation. 

At present, Square Yards mainly deals in residential, commercial, and luxury properties.

Genesis of Square Yards

During their stay in Hong Kong in 2014, the husband-wife duo of Tanuj Shori, an investment banker, and Kanika, a wealth manager, wanted to invest in Indian real estate. 

During this time, they travelled frequently to China. What struck them during their visits was the disruption caused by Chinese real estate proptech platforms in China's fragmented real estate market. 

As they studied the real estate landscape in China and other global markets, they realised the shortcomings in the Indian market. 

Kanika highlights that, compared to China, which had large organised players, the Indian real estate market mainly comprised unorganised players.

“In 2014, India was a $120-billion unorganised market, with no distributor, regulator and data transparency,” she says. “There were no big players, and we realised that the entire process (of buying and selling real estate) was completely broken.”

The Indian market, according to Kanika, suffered from “information asymmetry, service vacuum, and lack of organised distribution.”

So, Kanika and Tanuj decided to start a company that would address the gaps in the real estate market in India across the entire real estate value chain. Thus was born Square Yards, an integrated proptech platform, based in Gurugram.  

Business growth 

Square Yards is today present in 20 cities across India, the Middle East, Australia and Canada, and has over 7,500 employees across 9 countries. 

Globally, the company has a gross transaction value of over $3 billion, an annualised revenue run rate of over $80 million, and over 6.5 million monthly website visitors. It also facilitates over 25,000 real estate transactions annually. 

The company has partnered globally with over 500 real estate developers, 2 lakh agents, and over 100 banks and non-banking financial services companies. According to Crunchbase, Square Yards has raised a total funding of $97.8 million so far.

(This story has been updated with a correction in a quote.)