India's Real Estate Market: Still on the Runway, Says Abhishek Lodha
Abhishek Lodha, CEO and MD of Lodha Developers, discusses the current state and future prospects of India's real estate market, emphasizing the long-term growth potential and ongoing structural changes.
Real EstateIndiaMarket TrendsLodha DevelopersAbhishek LodhaReal EstateNov 03, 2025
“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,” Lodha said 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 said during the call.
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, Lodha said.
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, Lodha said.
Q2 FY26 financial results. 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 hasn't reached the takeoff phase yet. It is beginning to gain momentum but has many years ahead in the cycle.
What major 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 lead to a long real estate cycle of 15 to 20 years.
What percentage of Lodha Developers' sales come from the mid-income segment?
50% of Lodha Developers' sales come from the mid-income segment, with 12% to 15% coming from the luxury segment and the rest from other segments.
What financial results did Lodha Developers report for Q2 FY26?
Lodha Developers reported an 87% increase in its consolidated net profit to ₹789.8 crore for Q2 FY26 compared to ₹423 crore in the same period last year. The company's total income increased by approximately 44% to ₹3,878.7 crore.
What is Lodha Developers' strategy for the future?
Lodha Developers aims to maintain a balanced sales mix, not focusing solely on luxury or mid-income segments. They are also expanding their portfolio and expect to conclude one or more land deals this year, particularly in the Delhi-NCR region.
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