Mumbai: Despite economic fluctuations and policy changes, housing demand continues to be robust and steady, according to Abhishek Lodha, CEO and Managing Director of Macrotech Developers (Lodha Group). The company has not witnessed any slowdown in residential real estate sales, even in the last quarter or the early weeks of January 2025.
Sustained Demand and Expansion Plans
Speaking during an investors' call, Lodha emphasized that the company is experiencing consistent demand across its existing markets and is actively planning new project launches in key locations such as Alibaug, Vikhroli, Palava, Pune, and Bengaluru.
He also confirmed that Macrotech Developers is exploring entry into the Delhi-NCR residential market, expanding beyond its strongholds in the Mumbai Metropolitan Region (MMR), Pune, and Bengaluru. The company is looking at land acquisitions either through outright purchases or joint development agreements with landowners, Lodha told PTI.
Key Factors Driving Housing Demand
Lodha attributed the strong demand in the real estate sector to two primary factors:
Affluent Homebuyers:
The primary consumer base for residential real estate is not the entire urban middle class but a subset with an annual household income of ₹10 lakh and above.
This group continues to perform well financially, sustaining demand for quality homes.
Preference for Reputed Developers:
Homebuyers are becoming increasingly discerning, prioritizing high-quality homes from trusted and well-reputed developers.
Lodha noted that a small group of top developers—around 5 to 10 major players—is catering to a significant portion of this demand.
Even if the real estate market slows down, branded developers are likely to remain in a strong position, although they might face some impact.
Impact of Elections and Policy Changes
Despite challenges such as two election cycles in Maharashtra and environmental clearance changes due to a National Green Tribunal (NGT) order, Lodha said the company’s sales have remained strong, with a 25% year-on-year growth.
“This performance underscores the importance of having a resilient business model,” Lodha told investors.
Focus on Key Housing Segments
Macrotech Developers remains committed to serving end users in the Mumbai Metropolitan Region (MMR). The company is focusing on:
Mid-income housing priced between ₹40 lakh and ₹1.5 crore
Premium residential properties in the range of ₹1.5 crore to ₹8 crore
Expansion of projects in Palava and Upper Thane
Projected Growth and Profitability
Lodha expressed confidence in the company’s future, expecting a steady annual growth rate of 20% in sales. He also anticipates higher profitability growth, as increasing property prices are likely to boost margins.
With strong consumer demand, strategic expansion plans, and a focus on quality housing, Macrotech Developers is poised for continued success in India's evolving real estate landscape.