With established developers from other parts of the country cornering a piece of the Rs 1-lakh crore housing pie in the Mumbai Metropolitan Region, home-grown players such as the Lodha Group-owned Macrotech and Godrej Properties are adopting a two-pronged approach: to hold off competition and expand their market shares.
According to an expert, following the entry of the likes of Gurugram-headquartered DLF and Bengaluru-based Prestige Estates, realtors such as Macrotech and Godrej Properties have responded strategically through aggressive launches in premium micro-markets.
The Lodha Group’s recent launches show that it is leveraging its deep local market knowledge and regulatory environment, said Sangram Baviskar, founding member & CEO (real estate), TruBoard Partners. Whereas, Godrej Properties has been particularly aggressive in joint developments, he added.
Currently, Macrotech has a market share of 10% in the Mumbai Metropolitan Region and is looking to double it by 2030-31. While, Godrej has seen its business rise multifold in the past few years and cross Rs 6,500 crore in FY24, making the region its second-largest zone.
Baviskar said the entry of developers such as DLF and Prestige into Mumbai signalled the market’s robust potential.
The entry of major developers is not about disrupting existing players but responding to strong customer demand for premium developments, he said, adding Mumbai is India’s premier real estate market with room for multiple quality players.
Anuj Puri, chairman of Anarock Property Consultants, agrees, and adds new players are getting into the Mumbai market via the redevelopment route. “The entry of Prestige and others will not really be of much concern for local players,” he said.
DLF, the country’s largest developer, plans to launch the first phase of its Mumbai project in Andheri suburb in the fourth quarter of this fiscal. The apartments are priced between Rs 5.5 crore and Rs 7.5 crore. Prestige Estates has under construction projects in Pali Hill, Mahalakshmi, Mulund, among others. Recently, it acquired 22,135 square metres of land in Mira-Bhayandar near Mumbai for Rs 291.58 crore.
Anarock’s Puri says both Godrej and Lodha have seen considerable growth in their market presence in Mumbai. “Godrej has been rapidly increasing its footprint in the market with sales bookings and a focus on top-notch projects. Likewise, Lodha has ramped up its strong presence on the market with prestigious developments and consistently ensuring the completion of upscale residential and commercial properties,” Puri said.
The Lodha Group’s Macrotech expects pre-sales opportunity of about Rs 50,000 crore by 2030-31 and CAGR growth of 20%, according to a presentation by the company. It is expecting pre-sales to grow to Rs 21,000 crore by 2026.
The company’s pre-sales have gone up almost 14 times between FY22 and FY24 in Mumbai’s eastern suburbs where it is predominantly located.
“Mumbai is a key market for us and our recent projects have done very well,” said a source in the company, adding that the region can accommodate many quality and branded players and helps in consolidation in the market.
An email sent to the company did not elicit any response.
In an earlier interview, Abhishek Lodha, managing director of the company, said the market share of the top five developers in Mumbai is still in mid-20s. “So, there is a long, long way to go for consolidation. As more high-quality players come in, they will certainly benefit the market,” Lodha had said. The company is looking at projects worth Rs 17,500 crore during FY25 across its key markets.
Godrej Properties’ sales have grown 114% in the first half of FY25.
“Since FY22, we have cumulatively completed BD ( business development) deals with a total booking value of nearly Rs 21,700 crore,” a company spokesperson said.
Mumbai zone has seen “a very strong turnaround” in the last two-to-three years, its managing director Gaurav Pandey said in a concall with investors earlier this year. “It used to do about Rs 1,500 crore to Rs 1,600 crore in FY22 and in FY 23 it doubled to about Rs 3,000 crore,” Pandey said.
Recently, Godrej Properties won bids to develop three plots, measuring 6.54 acres, in Kharghar in Navi Mumbai, with a development potential of around 2 million square feet. The plots have an estimated revenue potential of around Rs 3,500 crore. Prior to that, it acquired a 90-acre land parcel at Khalapur in Raigad for around Rs 150 crore.