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Online advertising site OLX mulls entering real estate agency market

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OLX country manager Peter Ndiang’ui. FILE PHOTO | NMG

Online advertising site OLX is mulling over entering the real estate agency market as it seeks more direct cash generating ventures.

Users of the real estate service will pay a yet to be determined fee to be provided with an OLX agent who will place homes for sale or rental on the site, source for buyers and agree on a selling price.

This is modelled on a recent car product where OLX provides an agent to place a car advert on the site for Sh2,000, sources a buyer and agrees on a selling price.

After gaining customers through free services in Kenya and the rest of Africa, OLX has launched a push to earn money through paid premium featured listings.

“Real estate is a market we are looking at and OLX will seek a bigger share of this market,” said OLX country manager Peter Ndiang’ui.

“We are taking a bit to launch because of the complexities that come with real estate sales compared to car deals.” The complexities include the big money involved in property deals, transfer of titles and authentication of real estate transactions.

The service will be OLX in competition with firms like Lloyd Masika and Knight Frank

Growing incomes and large numbers of young people moving to urban centres are fuelling demand for housing across all asset classes and construction has emerged as one the economy’s fastest growing sector in recent years.