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India's real estate sector is undergoing a decisive phase of consolidation, according to Abhishek Lodha, MD and CEO of Macrotech Developers. He remarked that consumers, lenders, and landowners are increasingly inclined to associate with only a select few reputed developers. The trend, which intensified post-COVID, is expected to persist long-term. Lodha pointed out that while some concerns over demand slowdowns exist, these would likely be segmental and not industry-wide. Macrotech, operating across all segments, recorded INR 17,630 crore in bookings in the previous fiscal year and has set a target of INR 21,000 crore for the current year.
India's real estate market is currently experiencing what Abhishek Lodha, Managing Director and CEO of Macrotech Developers, described as a 'trifecta of consolidation', driven by aligned preferences of consumers, lenders, and landowners to engage with a limited number of established and reputed developers. Advertisement
He remarked during a recent analyst interaction that this consolidation trend was far from over and is expected to extend over a prolonged period. Lodha pointed out that this shift has been significantly visible on the demand side, where all three stakeholders-buyers, financiers, and landowners are showing a strong inclination towards working with top-tier real estate firms, whether as buyers, partners, sellers, or lenders.
Macrotech Developers, which sells under the 'Lodha' brand, is counted among the largest real estate players in India. When queried about a potential slowdown in demand for Grade A developers, Lodha explained that these companies had witnessed robust and high-quality pre-sales in the previous financial year, reinforcing the notion that credible developers remain resilient despite market fluctuations.
He observed that even if a slowdown emerges, it would most likely be limited to certain segments rather than being widespread. He drew attention to how, over the past three years, while the overall market showed growth, the mid-income housing segment underperformed. He added that such cyclical variations are a natural part of the industry.
Industry experts have noted that post-pandemic, the market has strongly shifted in favour of developers with proven track records. This shift follows widespread buyer dissatisfaction, particularly in the Delhi-NCR region, where several developers failed to deliver promised projects, leading to distrust among homebuyers.
According to Lodha, the luxury housing segment has thrived in recent years, whereas the affordable and mid-income sectors have suffered due to a shortage in supply, largely caused by the high cost of land and construction inputs. In response, Macrotech has chosen a diversified strategy, operating across all market segments instead of focusing on any single category.
He further suggested that reputed Tier 1 developers are less likely to be impacted during market slowdowns. In fact, such conditions often provide larger developers with advantageous terms in land acquisition, reinforcing their market position.
Lodha affirmed that there is ample opportunity ahead for large, branded developers to sustain and scale their growth trajectories. During the previous fiscal year, Macrotech reported a 21% increase in sales bookings, reaching a record INR 17,630 crore from INR 14,520 crore in the preceding year. The company is targeting INR 21,000 crore in property sales in the current financial year, which would mark a 19% annual growth.
To date, the firm has delivered approximately 100 million square feet of real estate and is actively developing over 110 million square feet across its current and upcoming projects.
Developers with scale, delivery credibility, and financial discipline are emerging stronger, especially amid shifting consumer expectations and cautious investor sentiment. The sector's trajectory suggests that while short-term cyclicality may affect specific segments, the overall thrust remains towards sustainable growth led by established players. For developers like Macrotech, the market conditions are aligning to reward their consistent performance and strategic foresight.
Source - PTI
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