"Macrotech Announces ₹800 Crore Investment for Construction of Two Housing Projects in Bengaluru"

Macrotech Developers, the entity behind the Lodha brand, is set to invest approximately ₹800 crore in the construction of two housing projects in Bengaluru, marking an expansion into the city amid robust demand, according to MD & CEO Abhishek Lodha.

Having a substantial presence in the Mumbai Metropolitan Region (MMR) and Pune, Macrotech Developers ventured into the Bengaluru market last year through a joint venture, announcing the development of its first housing project. This was followed by the addition of another housing project in the IT city.

The first residential project in Bengaluru was launched earlier this month, with plans to unveil the second project in the fourth quarter of the current fiscal year or potentially the first quarter of the next financial year.

Abhishek Lodha stated, "The gross development value or sales value is expected to be around ₹2,500 crore from these two projects." Apartments in the price range of ₹1.5-2.5 crore will be offered for sale.

Lodha emphasized the company's continued focus on the residential markets of MMR and Pune. Regarding the Bengaluru market, he highlighted a concentration on sales, marketing, and the execution of the two projects before considering further expansion.

On the operational front, Macrotech Developers achieved sale bookings of ₹6,890 crore in the first six months of the current fiscal year, surpassing the ₹6,000 crore in the corresponding period of the previous year. With a robust launch pipeline, the company aims to achieve the ₹14,500 crore sales bookings target for the fiscal year.

Lodha expressed confidence in easily surpassing the target, citing the launch of 3.7 million square feet in the April-September period and plans to launch an additional 8 million square feet in the second half of the fiscal year.

For new business development, the company has added seven land parcels in MMR and Bengaluru during the April-September period, with a sales potential of ₹14,300 crore, already surpassing 80% of the annual target of ₹17,500 crore.

Lodha revealed ongoing talks with landlords for additional land parcels, mainly in MMR and Pune, expressing confidence in exceeding the annual guidance while focusing on steady and predictable growth. He highlighted the sustained demand in the real estate sector, which he believes is in the third year of a long-term up-cycle of at least 15 years. Lodha also noted that interest rates on home loans are expected to moderate, contributing to strengthening demand conditions.

HBL