Why Buying a Property Trumps Renting: Insights from Abhishek Lodha
Macrotech Developers' Abhishek Lodha emphasizes the benefits of buying over renting, citing significant increase in rentals and reintroduction of incentives for first-time homebuyers.
Real EstateProperty BuyingRentingMacrotech DevelopersAbhishek LodhaReal EstateAug 21, 2024
With the significant increase in rentals across the country, it is now clear that while rentals might look attractive in the short-term, in the medium term, rentals are unlikely to create wealth for the middle class. Therefore, buying a home as soon as possible is the best possible option, not just from the perspective of creating wealth, but also giving stability and respectability to the family.
Lodha also highlighted that Budget 2024 has reintroduced incentives for first-time homebuyers for the lower income sections of the society. The reintroduction of the credit-linked-subsidy scheme is a significant positive, he added.
Macrotech Developers plans to enter a new city and may take a decision by the latter half of FY25. The company's net debt rose 43.5% to ₹4,320 crore in Q1 on higher capex for land and construction. However, Lodha assured that the business delivers strong underlying cash flows, and as the company continues to ramp up its investment in construction, it will see significant acceleration in free cash flow generation and operating cash flow generation in the second half of the year.
The average cost of funds came down by around 30 basis points to about 9.1%. Macrotech Developers posted a 20% growth in sale bookings to ₹4,030 crore for the first quarter of this fiscal on strong housing demand.
The company has delivered around 100 million square feet of real estate and is developing more than 110 million square feet under its ongoing and planned portfolio.
About Macrotech Developers Macrotech Developers Ltd is a leading real estate company in India, known for its iconic projects under the Lodha brand. The company has a strong presence in the Indian real estate market and is committed to delivering high-quality projects that meet the needs of its customers.
Frequently Asked Questions
Why is buying a property better than renting?
Buying a property is better than renting because it creates wealth and provides stability and respectability to the family, whereas rentals are unlikely to create wealth for the middle class in the medium term.
What incentives has Budget 2024 introduced for first-time homebuyers?
Budget 2024 has reintroduced the credit-linked-subsidy scheme for first-time homebuyers for the lower income sections of the society.
What are Macrotech Developers' plans for expansion?
Macrotech Developers plans to enter a new city and may take a decision by the latter half of FY25.
How has Macrotech Developers' net debt changed in Q1?
Macrotech Developers' net debt rose 43.5% to ₹4,320 crore in Q1 on higher capex for land and construction.
What is Macrotech Developers' track record in delivering real estate projects?
Macrotech Developers has delivered around 100 million square feet of real estate and is developing more than 110 million square feet under its ongoing and planned portfolio.
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