What is the background of Lamudi? Could you describe the company’s presence in Jordan?
Lamudi , the emerging market real estate classifieds player, officially launched operations in 13 countries across Asia, Africa, and Latin America in October 2013. Less than one year later, we are present in 28 countries. As the online real estate market grows, so does Lamudi’s reach worldwide. The search for eal estate is moving online and we want to help people to find the right property. We want to be there to grow alongside the rate of Internet usage in emerging markets and we see great potential for this in Jordan.
Lamudi Jordan launched earlier this year; the company benefits from the resources and local know-how of teams in each of its countries, with support from global headquarters in Berlin.
Lamudi recently expanded its presence in the Middle East because, quite simply, we could see a demand that was not being met. As more people in each of these markets switch online, they want to have access to the same resources that are available elsewhere.
What is the Lamudi business model?
Lamudi is a Rocket Internet venture. Rocket is the fastest and the most successful online venture builder across the globe and has been building online companies worldwide since 1999. Like most Rocket Internet ventures we follow the proven business models of established players in established markets. Revenue is generated by listing packages we sell to professional agents, brokers and developers, as well as classical banner advertisement on our website. Additionally anyone listing on our website can purchase higher visibility through featured listing space.
What is the current Middle East real estate market like?
The property market in the Middle East is strong. Demand is increasing thanks to the economic growth that we’ve been seeing in recent years. The population of Jordan, for example, is young and vibrant, and a large number of these youths will soon be looking to purchase their first home. This presents a great opportunity for a business like Lamudi.
How has the real estate market in Jordan changed over the last decade?
In the past, the Middle East has seen a shortage of housing but recently we have seen improvements when it comes to meeting these demands. The real estate market in Jordan is going from strength to strength, increasingly attracting investors and buyers.
What does the future of the Middle Eastern property market look like?
The real estate industry in the Middle East is constantly maturing and will continue to grow over the next decade. Cities are growing rapidly and the real estate market will have to develop to cater to the increasing demand for housing.
What do you think about the price of property in Jordan and the Middle East, and how is this changing?
In the first quarter of this year, property rental prices remained steady in Jordan, with the price of buying a house showing a slight increase. Other Middle Eastern countries have seen much higher pricing increases, for example in Dubai. I wouldn’t be able to comment now on a price average or on a specific price range, compared to other countries. Most of the Middle East has seen an increase in upscale housing developments, but at the same time, affordable housing is growing thanks to the demand of the population.
How big is the online property market in Jordan? How does this compare to other countries in the Middle East?
At the moment, Jordan has 1.9 million Internet users and 95% of Jordanians own cell phones. In a recent study, Jordan in fact ranked second in Internet usage in the Arab world. Thanks to the growing Internet penetration in Jordan, the online property market is growing and using the Internet has become an integral part of daily life. Those hunting for property, particularly the younger generation, are turning to the Internet to make their purchases.
The online property market is a derivative of the underlying property market and in Jordan, this is getting stronger every day. Internet penetration in the Middle East is expected to reach 197 million by 2017, encouraging technological innovation and empowering people with the freedom of e-commerce. Over the past five years, Jordan has shown increasingly impressive numbers when it comes to making online purchases, and it continues to expand.
How does this compare to the offline property market?
The property market is moving online. Our rapid growth in such a short amount of time is proof of this. More and more people are switching online to do things like shop for clothes and gadgets, so it’s natural for them to look for bigger items like cars and properties to buy and rent too.
What is the biggest challenge for the online property market in the Middle East?
I’d say that the biggest challenge at the moment is probably educating people on how to use online portals, as well as helping agents to understand how to give users the best possible experience of buying property online. We act as consultants, advising agents on how to improve their online listings, for example through the quality and quantity of pictures. There are many things that people just don’t think of, and we’re here to help.
Is there anything else you’d like to add about the property market in the Middle East?
We believe that this year emerging markets will see an even greater shift from offline to online. In developed markets almost 100% of the search journey starts on Google, it may stay online or even go offline, but it starts there. Yes, the demand for e-commerce platforms like Lamudi is rapidly increasing in the Middle East. And only Lamudi can provide the perfect mix of local expertise and global insights.
Lamudi is an online marketplace where one can buy, sell or rent property. The company says that real estate classifieds websites are not common in the developing world, its business geography, but demand for these kinds of services is increasing.
Headquartered in Berlin, Lamudi does business in 28 countries across Asia, the Middle East, Africa and Latin America, with more than 500,000 real estate listings across its network.
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