Lodha and Godrej Guard Their Turf as New Realtors Enter Mumbai
Mumbai, Godrej Properties, real estate, Macrotech, market share
MumbaiReal EstateGodrej PropertiesMacrotechMarket ShareReal Estate MumbaiNov 18, 2024
According to experts, the entry of big names like Gurugram-based DLF and Bengaluru-based Prestige Estates has prompted local developers to respond aggressively. Sangram Baviskar, founding member and CEO of TruBoard Partners, notes that Macrotech is leveraging its deep local market knowledge and regulatory expertise. On the other hand, Godrej Properties is aggressively pursuing joint developments.
Macrotech aims to double its market share in the Mumbai Metropolitan Region, currently at 10%, by 2030-31. The company's pre-sales have surged almost 14 times between FY22 and FY24, primarily in the eastern suburbs of Mumbai. Godrej Properties, meanwhile, has seen its business in the region grow multifold and cross Rs 6,500 crore in FY24, making it the company’s second-largest zone.
Baviskar emphasizes that the entry of major developers like DLF and Prestige into Mumbai is not about disrupting existing players but responding to strong customer demand for premium developments. He adds that Mumbai, being India’s premier real estate market, has the capacity to accommodate multiple quality players.
Anuj Puri, chairman of Anarock Property Consultants, agrees that new players are entering the Mumbai market through the redevelopment route. “The entry of Prestige and others will not be a significant concern for local players,” he said.
DLF plans to launch the first phase of its Mumbai project in Andheri suburb in the fourth quarter of this fiscal, with apartments priced between Rs 5.5 crore and Rs 7.5 crore. Prestige Estates has projects under construction in Pali Hill, Mahalakshmi, and Mulund. Recently, Prestige acquired 22,135 square meters of land in Mira-Bhayandar near Mumbai for Rs 291.58 crore.
Puri notes that both Godrej and Lodha have seen considerable growth in their market presence in Mumbai. “Godrej has been rapidly increasing its footprint with sales bookings and a focus on top-notch projects. Similarly, Lodha has ramped up its strong market presence with prestigious developments and consistent project completions,” he said.
Macrotech expects pre-sales to reach about Rs 50,000 crore by 2030-31, with a compound annual growth rate (CAGR) of 20%. The company’s pre-sales are projected to grow to Rs 21,000 crore by 2026.
A source from the company stated, “Mumbai is a key market for us, and our recent projects have performed very well. The region can accommodate many quality and branded players, which helps in market consolidation.”
Abhishek Lodha, managing director of the Lodha Group, noted in an earlier interview that the market share of the top five developers in Mumbai is still in the mid-20s. “There is a long way to go for consolidation. As more high-quality players enter, they will certainly benefit the market,” Lodha said. The company is looking at projects worth Rs 17,500 crore during FY25.
Godrej Properties’ sales have grown 114% in the first half of FY25. Since FY22, the company has completed business development deals worth nearly Rs 21,700 crore. Managing Director Gaurav Pandey noted a strong turnaround in the Mumbai zone over the last two to three years, with the region’s revenue doubling from Rs 1,500-1,600 crore in FY22 to about Rs 3,000 crore in FY23.
Recently, Godrej Properties won bids for three plots in Kharghar, Navi Mumbai, with a development potential of around 2 million square feet and an estimated revenue potential of Rs 3,500 crore. Prior to this, it acquired a 90-acre land parcel at Khalapur in Raigad for Rs 150 crore.
Frequently Asked Questions
What is Macrotech's current market share in the Mumbai Metropolitan Region?
Macrotech currently has a market share of 10% in the Mumbai Metropolitan Region.
How much has Godrej Properties' business grown in the Mumbai region in the last few years?
Godrej Properties' business in the Mumbai region has grown multifold and crossed Rs 6,500 crore in FY24, making it the company’s second-largest zone.
What are the key strategies employed by Macrotech and Godrej Properties to hold off competition?
Macrotech leverages its deep local market knowledge and regulatory expertise, while Godrej Properties is aggressively pursuing joint developments.
Which major developers are entering the Mumbai real estate market?
Major developers like DLF and Prestige Estates are entering the Mumbai real estate market.
What is the projected pre-sales growth for Macrotech by 2026?
Macrotech expects its pre-sales to grow to Rs 21,000 crore by 2026.
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