Top 5 Real Estate Developers: Supply-Constrained, Not Demand: Abhishek Lodha
Post-COVID, the housing market has seen a shift towards larger and more reputable real estate developers. Abhishek Lodha, MD of Lodha Developers, explains why the top five builders are supply-constrained, not demand-constrained.
Real EstateHousing MarketDemandSupplyTop DevelopersReal Estate NewsAug 06, 2025
During the 2024-25 fiscal, Godrej Properties, DLF, Lodha Developers, Prestige Estates, and Signature Global were the top five listed real estate companies in terms of pre-sales, collectively achieving pre-sales of around Rs 96,000 crore. The housing market has seen a notable shift towards bigger and branded real estate players in the post-pandemic era.
In a recent conference call with analysts, Abhishek Lodha highlighted various factors driving demand for the top five builders. The primary factor is consumers' desire to upgrade their quality of life by purchasing homes from top builders known for their strong project execution and brand reputation.
Lodha emphasized that while there may be concerns about the overall demand in urban India, the sales of the top five real estate developers are constrained by supply, not demand. He noted that the Indian real estate market is in a unique position where top developers are unable to meet the high demand for their properties.
Therefore, any short-term aberration in the demand side is unlikely to affect the sales of the top builders. Lodha pointed out that the performance of key developers during the last fiscal year was very strong. He stated, 'If you look at the numbers for this (April-June) quarter, they are very strong. There is no reason to have concerns about demand, especially for the top five developers.'
Lodha reiterated that the sales of the top five developers are 'supply constrained, not demand constrained.' He added that consumers are keen on upgrading their quality of life in a low-risk manner, which is precisely what the top five developers offer.
When discussing the diversification of developers into different geographies, Abhishek Lodha mentioned that the top few developers will be present in the top few cities of the country. He stated, 'The depth of their presence will improve the quality of the market and enable consumers to get the best quality product, regardless of the city they are in.'
Lodha also opined that the Indian real estate market is at the start of a long-term up cycle as India transitions from a low-income to a mid-income nation. He acknowledged that there may be some weaker periods, but the overall direction is positive.
Regarding the affordable housing segment, Lodha noted that it has degrown, but other segments are performing well. He emphasized the importance of analyzing the market in value terms rather than just in unit terms, as is done in most other categories.
In terms of annual sales bookings, Godrej Properties emerged as the largest listed player during the last fiscal with pre-sales of Rs 29,444 crore, up from Rs 22,527 crore in 2023-24. DLF, India's largest real estate firm by market capitalization, saw its sales bookings rise to Rs 21,223 crore from Rs 14,778 crore during the same period.
Mumbai-based Lodha Developers Ltd reported sale bookings of Rs 17,630 crore in FY25, compared to Rs 14,520 crore in the previous year. Bengaluru-based Prestige Estates Projects clocked sale bookings of Rs 17,023 crore last fiscal, down from Rs 21,040 crore in 2023-24. Delhi-NCR-based Signature Global achieved sales bookings of Rs 10,290 crore, up from Rs 7,270 crore.
Frequently Asked Questions
What is the current challenge faced by the top five real estate developers in India?
The top five real estate developers in India are currently facing the challenge of supply, rather than demand. They are unable to meet the high demand for their properties.
How has the housing market shifted post-COVID?
Post-COVID, the housing market has seen a shift towards larger and more reputable real estate players. Consumers are increasingly favoring top developers known for their strong project execution and brand reputation.
What factors are driving demand for the top five builders?
The primary factor driving demand is consumers' desire to upgrade their quality of life by purchasing homes from top builders who have a better track record of executing projects and offering high-quality services.
What is Abhishek Lodha's view on the short-term aberration in urban demand?
Abhishek Lodha believes that any short-term fluctuations in urban demand will not significantly impact the sales of the top builders, as their sales are supply-constrained, not demand-constrained.
How is the Indian real estate market positioned for the future?
The Indian real estate market is at the start of a long-term up cycle as India transitions from a low-income to a mid-income nation. While there may be some weaker periods, the overall direction is positive.
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