Oyo’s Real Estate Disruption – Oyo Living Targets $20 Billion Home Rental Space!
Oyo Living introduced a new business model, in the long-term home rental space.
After disrupting and dominating budget hotel rental space, India’s 2nd more valuable startup and a Unicorn Oyo has aimed for the lucrative home rental space.
Oyo Living, which has been described as a long-term housing rental provider, has been officially launched.
What exactly is Oyo Living, and how can it disrupt the home rental space?
Keep reading to find out more!
Oyo Living: The Next Disruptor In Real Estate?
Oyo Living will target the $20 billion home rental market in India.
And their target audience is salaried employees, who have shifted to a new city for a job, and looking for a quality accommodation.
As per Oyo’s chief growth officer Kavikrut, Oyo Living is working with independent owners and large builders, and leasing out their entire buildings.
As of now, Oyo Living has acquired 2000 ‘beds’ across 36 properties in Noida, Gurgaon, Bengaluru, and Pune.
In the next 12 months, they have planned to expand this to 50000 beds across top 10 metro cities in India.
Since Oyo is brand name, and the sector is largely unorganized, their entry can disrupt the market.
Oyo Living: How Will It Work?
Say you are a 25-30 year old salaried employee and have shifted to Pune for a new job.
Naturally, you will look for a decent accommodation, at the cheapest price.
As of now, you can search online portals like Nestaway, Makaan, MagicBricks, Housing etc and either contact the owner, or deal with the brokers. The other option is to start house-hunting the offline way, by visiting brokers.
But with Oyo Living, all your pain points are taken care of, in a single location – Oyo will take care of deposits, brokerage, negotiations, leasing documents, maintenance, advance rents etc.
All you need to do is, deposit Rs 7999, per bed, per month to Oyo, and shift to your new home immediately. As the service expands to other metros, the price tag can fluctuate.
As per Oyo, every location would be powered with: Wi-Fi connectivity, television, regular housekeeping, power backup, CCTV surveillance, and 24/7 caretaking, along with Oyo Support at no extra cost.
Hence, in a way, Oyo Living will be Oyo branded home rentals, for a longer duration.
Oyo’s New Business Model For Home Rental
Oyo has decided to implement a new business model, in the home rental space, which is indeed interesting.
Instead of just listing properties like contemporary startups, Oyo will be taking over the properties from the owners, and then brand them their own way.
Maintainance of the properties, ensuring that promised services are provided, managing rents, paying taxes etc will be managed by Oyo, on-behalf of the property owners.
In return, the property owners will be ensured of a guaranteed income from their properties.
Now, it would be interesting to observe how this new initiative from Oyo alters Indian real estate. We will keep you updated.