India's Real Estate Market Poised for Long-Term Growth, Says Abhishek Lodha
Abhishek Lodha, CEO and MD of Lodha Developers, believes that India's real estate market is on the runway and is yet to enter the takeoff phase. He highlights a once-in-a-lifetime transition in the housing sector from low to mid-income housing.
Real Estate MarketHousing SectorAbhishek LodhaLodha DevelopersGdp Per CapitaReal Estate NewsNov 03, 2025
Abhishek Lodha, CEO and MD of Lodha Developers, said, “We (India's real estate market) are still sort of, I would say, the plane is on the runway. It is not even gotten to kind of takeoff phase. It is just kind of moving along on the runway. That is how we think the cycle is,” during the company’s Q2 FY26 earnings call recently.
“Yes, sometimes there will be a situation, there will be a backup on the runway. The plane will have to pause for a few minutes, or it might be a few quarters in this context. But we have many years ahead in the cycle,” Lodha added.
He noted that the Indian housing sector is undergoing a “once-in-a-lifetime transition” from low-income to mid-income housing. “Wherever such transitions have happened in large economies, they have witnessed very long real estate cycles, typically 15 to 20 years. We think India will also have a cycle that long. We are only four or five years out of that very long cycle. It does not mean we never had a bad year; we can, of course, have a bad year,” Lodha explained.
According to Lodha, from a structural standpoint, the ongoing cycle is expected to be much longer, as the demand required to meet India’s housing needs will take considerable time for the supply side to catch up. “I think that the real estate cycle has not even gotten started. It will only get started when GDP per capita crosses $4,000 to $4,500. So we are still a few years before real estate really takes off,” he stated.
Half of Lodha's sales are from the mid-income segment. Lodha noted that this year mid-income housing has started picking up on the back of the support from the government, “in the form of interest rate cuts, income tax relief, and other measures. As a result, the overall trend may shift slightly compared to last year.”
Speaking about the sales mix, Lodha stated that 50% of the company’s sales come from the mid-income segment. “We have about 12% to 15% coming from the luxury segment, and the balance coming from the previous segment. So, that is how our business mix is, and that is what we like it to be, because we do not really want to take a view that only luxury will perform or only mid-income will perform,” he added.
Lodha Developers Ltd reported an 87% increase in its consolidated net profit to ₹789.8 crore for the second quarter of FY26 compared to ₹423 crore during the same period last year. The company's total income increased by approximately 44% to ₹3,878.7 crore in Q2 FY26, compared to ₹2,684.6 crore during the same period in the previous year.
According to the company, in Q2FY26, it added one location in the Mumbai Metropolitan Region (MMR) with a GDV of ₹2,300 crore, in addition to the five locations with a GDV of ₹22,700 crore added in Q1FY26.
In total, Lodha Developers has delivered 110 million square feet of real estate and is currently developing more than 130 million square feet under its ongoing and planned portfolio, as per the company.
Frequently Asked Questions
What is the current state of India's real estate market according to Abhishek Lodha?
According to Abhishek Lodha, India's real estate market is still on the runway and has not yet reached the takeoff phase. It is beginning to gain momentum but has many years ahead in the cycle.
What significant transition is the Indian housing sector undergoing?
The Indian housing sector is undergoing a once-in-a-lifetime transition from low-income to mid-income housing. This transition is expected to result in a long real estate cycle, typically 15 to 20 years.
What factors are supporting the growth of mid-income housing in India?
The growth of mid-income housing in India is being supported by government measures such as interest rate cuts, income tax relief, and other incentives.
What is the sales mix of Lodha Developers?
Lodha Developers' sales mix consists of 50% from the mid-income segment, 12% to 15% from the luxury segment, and the remainder from other segments.
What were Lodha Developers' financial results for Q2 FY26?
Lodha Developers Ltd reported an 87% increase in its consolidated net profit to ₹789.8 crore for Q2 FY26, compared to ₹423 crore during the same period last year. The company's total income increased by approximately 44% to ₹3,878.7 crore in Q2 FY26.
Related News Articles
India's Middle Class Deserves Better: Reinstate Real Estate Indexation Benefits, Says Mohandas Pai
Veteran business leader Mohandas Pai urges the government to reconsider its decision to scrap indexation benefits for real estate transactions, citing the negative impact on the middle class.
Mystery Deepens: Body of Missing Nerul Real Estate Agent Found, Another Still Unaccounted For
Raigad police discover the body of one of the two missing Nerul real estate agents, while the search for the second agent continues.
PVR INOX to Unlock Value from Prime Real Estate Assets
PVR INOX plans to monetize non-core real estate assets in prime locations such as Mumbai, Pune, and Vadodara, as part of its growth strategy.
Apple iPhone 16 Plus Review: Big Screen, Affordable Price
The Apple iPhone 16 Plus delivers exceptional performance and a large, vibrant display at a price point that won't break the bank. Benchmark scores and real-world usage demonstrate its outstanding speed and efficiency.
Maharashtra Schools Introduce Strict Medical Emergency Guidelines for Student Safety
The Maharashtra government has introduced comprehensive medical emergency guidelines for all schools, aiming to enhance student safety and well-being. This initiative follows a tragic incident and aligns with a Bombay High Court order.
The Unregulated Real Estate Market in Kashmir: A Growing Concern
The lack of regulation, enforcement, and planning in the real estate sector in Kashmir poses significant challenges, threatening the sustainability, transparency, and fairness of the industry.