Owning a house is emotion in India and few of the South Asian countries. Majority of the investors say that renting a house is a wiser decision when compared to buying one. Investing in stocks and other forms has higher returns compared to investing in real estate. Migration has relatively multiplied, to a yearly stream of nine million a year for 2011-16, from 5.5-6 million a year between 2001-11. In spite of the fact that the overview demonstrates the most noteworthy migration to Delhi, there were well more than 90 urban areas in India with yearly populace development rates of at least 3%. Against this, in 2012, the urban housing lack in India was evaluated to be just about 19 million homes, with most by far required for bringing down wage households.
Rental housing is a basic segment of the housing reaction in urbanizing nations. Over the salary spectrum, rental housing permits more prominent work versatility. For low-wage households that regularly work in the casual area, rental housing better suits their salary volatility and hazard profile. Home possession requires settled regularly scheduled instalments, for an illiquid asset that is liable to showcase chance and compels portability for the individuals who would least be able to bear to be jobless. It is access to housing, not a possession that is of essential significance.
This example plays out in urban communities as well
The statistics show that people have moved towards the same notion of investing in stocks and not in real estate, we can see that majority of working-class people and young entrepreneurs are spending their savings on digital currencies and commodities in recent times.
The stats might be there because of the high upfront investment in real estate when compared to stocks and currencies. But there has been a movement and the movement of living in a rented house.
Sigh, finding a house for rent in tier 1 cities in India is a tough ask! You can put your problems to rescue through SimplyGuest.
Simply Guest was founded by three people at the epitome of their career in 2015. Subbu Athikunte and Ambareesha started SimplyGuest with a vision to simplify the whole process of living in a rented house and were later joined by Mayank Pokharna. SimplyGuest doesn’t only get you a place to live but also covers monthly bills, repairs, and maintenance, etc. The list of service doesn’t end there as SimplyGuest also provides add-on services such as bicycles for workplace commute, meal delivery, and much more.
People might think that SimplyGuest is expensive when compared to competitors but any of the company does not provide the add-on services offered by SimplyGuest and if one round up the expenses of the add-on services on their own, they might end up spending more than the amount they would pay to SimplyGuest. It’s like on road price vs ex-showroom price.
The business model of SimplyGuest revolves around economies of scale along with quality home space and add-on service. They currently gross around two crore/annum and have serviced more than 600 clients.
Of the 140 beds in shared homes, 57% are occupied by women while men hold 43%. In November 2017, they started their own ladies hostel that currently has 27 beds. The occupancy rates for beds at SimplyGuest hover around 85%. At a current growth rate of 30%, they are expected to offer about 300-350 beds in shared flats and 150-200 beds in hostels within a time frame of 12 months.
The company is currently self-funded and has already rejected an offer of acquisition by one of the leading companies in India. They are also looking to raise investment, and in about five years, they see themselves managing 50k beds in shared flats and another 50k bed in hostels.
We have talked about the history of retail housing, the current market, and future potential. We have also mentioned about a startup called Simply Guest. We have talked about investment prospects, current scenario, and future market for the startup. Thanks for reading