Burger Up: NoBroker Sees Lucrative Opportunity in Home Loans, Insurances as Young Consumers Invest More in Houses

Bengaluru-based prop-tech startup NoBroker has identified a promising new sector for growth - its home loans and insurance vertical - as more young consumers increasingly look to invest in houses. According to the company's co-founder and Chief Business Officer Saurabh Garg, the home loans division is on track to become its second-largest business after its real estate buying-and-selling business.

Garg stated that NoBroker's home loans vertical has seen remarkable growth, tripling in the financial year 2024, with an attach rate indicating healthy demand for both primary (homes) and secondary (home loans). Notably, the company expects the home-buying cycle to intensify over the next four to five years due to favorable conditions such as low interest rates and rising home prices.

Furthermore, Garg observed that the real estate sector is entering a fast-growth phase after almost a decade of slow growth, driven by genuine demand from buyers. Additionally, as average rent inflation in India exceeds annual salary increments, more people are opting to purchase homes rather than renting.

Data reveals that the platform saw a 23% rise in homebuyers aged 25-35 during the first half of 2024, with over half of its users being under the age of 45. These buyers prioritize property ownership not just as a milestone but also as a means to build wealth and stability early on.

Founded in 2014 by Amit Kumar Agarwal, Akhil Gupta, and Saurabh Garg, NoBroker has successfully diversified its revenue streams with a fourth of its over ₹600 crore annual revenue coming from financial services. With ties with prominent banks such as Indian Bank, State Bank of India, HDFC, and Bajaj Finserv, the startup facilitates easy home loan options for customers.

While analysts point out that hypergrowth is not guaranteed due to competition from established players like MyGate and Anarock's Apna Complex, Garg remains optimistic about NoBroker's ability to leverage technology and partnerships to capitalize on emerging trends in real estate financing.