Abhishek Lodha, MD and CEO of Macrotech Developers, said that the company’s pilot phase in Bengaluru’s real estate market has concluded
Abhishek Lodha, Managing Director and CEO of listed real estate firm Macrotech Developers, also known as Lodha Group, said that the company has concluded its pilot phase in Bengaluru and is targeting a market share of 15% in the IT city by end of decade.
Lodha targeting 15% market share in Bengaluru
The company’s pilot phase in “Bengaluru has been concluded successfully. As you are aware, when we entered Bengaluru in mid-2021, we had mentioned that we would be in pilot phase for 2-3 years during which, we will focus on building a strong local operating team, understanding local operating nuances and making sure that we can showcase our delivery to consumers,” Lodha said during the Q2FY25 earnings call.
Abhishek Lodha said that in terms of moving from pilot to growth phase, “We expect to move from our present market share of between 2% to 3% of sales in Bengaluru in the last fiscal when we did about ₹14 billion of sales to move to more to 15% of the Bengaluru market by the end of the decade.”
“We are hoping to gain about 2% points of share on average each year. So, we would probably expect this year to be higher than last year in terms of pre-sales,” he said.
Also Read: Buying a property is better than renting one: Abhishek Lodha
In April 2024, Lodha had said that its company’s market share in Mumbai real estate market is at around 10% and the market share of the top five developers in Mumbai is still in the mid-20s.
“So, there is a long, long way of consolidation to go. As more high-quality players come in, they will certainly benefit the market,” he had said while speaking about new players entering the Mumbai real estate market.
Also Read: Macrotech Developers plans to enter a new city, may take a decision by latter half of FY25
Palava city to witness growth similar to Gurugram
According to the company, its project named Palava city in Thane near Mumbai is witnessing growth on account of improvement in infrastructure. This will enable the city to replicate the growth in Gurugram today.
“Palava story, we are in this important transition phase right now where, over the last couple of years, we’ve been moving from just a low- and mid–income development to mid-income to aspirational high-end development,” Shaishav Dharia,CEO, Townships and Rental Assets, Lodha Group, said at the company’s earnings call for Q2FY25.
“As infrastructure continues to improve over the next 3 to 5 years, Palava will definitely have the ability to replicate what Gurugram is today, which took almost 25-30 years, and we’ll be able to achieve it much faster because we already have a lot of the inherent elements out there,” he said.
Also Read: Macrotech Developers to launch housing projects worth ₹10,000 cr by March in MMR, Pune, Bengaluru
Earlier this year, Abhishek Lodha had said that Palava City spread around 4,500 acres may scale up and generate a revenue of over ₹8,000 crore per year in the next couple of years owing to development of residential, commercial properties, including warehousing and industrial spaces and life sciences hub.