Mumbai’s property market is witnessing supply pressures in certain redevelopment-heavy micro-markets, but overall buyer demand remains steady, said Abhishek Lodha, CEO and MD of Lodha Developers.
Oversupply Concentrated in Select Locations
According to Lodha, a spike in redevelopment activity across parts of the city has resulted in higher inventory in specific neighbourhoods. However, he indicated that this has not materially dented demand for projects by established developers. Premium lifestyle housing, he said, continues to attract consistent interest.
He pointed to steady walk-ins, enquiries, and conversion rates in recent quarters as evidence that buyers remain inclined toward developers known for timely delivery and construction standards.
Brand Credibility Supporting Sales
The company maintains that its performance has stayed stable because customers prioritise reliability and execution capability. Lodha noted that buyers are increasingly favouring developers with strong brand recognition and a proven track record.
He added that the market is likely to consolidate further, with leading developers expected to capture a larger share of demand as buyers gravitate toward trusted names.
Affordable Housing Segment Sees Decline
A notable shift has been the slowdown in the entry-level segment, particularly homes priced below Rs 75 lakh. Both supply and absorption in this category have fallen in recent years. While affordable housing earlier contributed significantly to sales volumes, it accounted for a smaller share of overall transaction value. As a result, even with lower volumes, overall deal values in the market have remained elevated.
Since Lodha Developers has gradually reduced exposure to this segment, the company stated that its operations have not faced significant impact.
Financial Update and Market Trends
The company reported a rise in consolidated net profit to around Rs 956.9 crore in the latest quarter, alongside revenue growth driven by steady demand in the premium segment.
Key redevelopment hotspots include Borivali, Andheri, Bandra, Malad, Ghatkopar, and Mulund. While supply has increased in these areas, industry observers expect demand to remain stable as buyers prioritise location, quality, and developer reputation.
Source: Brandz Magazine
