Luxury segment accounts for half of unsold houses: Lodha

About 7 per cent was priced between Rs 3 crore and Rs 5 crore, 22 per cent priced between Rs 5 crore and Rs 8 crore, and 15 per cent above Rs 8 crore.

Close to 48 per cent of the total unsold inventory of residential developments (by value) by Macrotech Developers, earlier known as Lodha Developers, was in premium and luxury projects, said the draft red herring prospectus (DRHP) filed by the company.

It filed its DRHP with the Securities and Exchange Board of India (Sebi) late on Tuesday to raise Rs 2,500 crore through the IPO.

The DRHP said about 21 per cent of unsold inventory of the firm, which mostly operates in the Mumbai Metropolitan Region (MMR), was priced between Rs 1 crore and Rs 3 crore.

About 7 per cent was priced between Rs 3 crore and Rs 5 crore, 22 per cent priced between Rs 5 crore and Rs 8 crore, and 15 per cent above Rs 8 crore.

According to Anarock Property Consultants, at the end of 2020, of the total 638,000 unsold units in top seven cities, total stock in the luxury segment (priced above Rs 1.5 crore) was 14 per cent (industry figures).

For 9MFY21 and FY20, premium and luxury projects contributed Rs 1,327.8 crore and Rs 2,233.8 crore to sales, accounting for 42.22 per cent and 42.2 per cent of residential sales, respectively.

The DRHP said 35 per cent of unsold inventory was below Rs 1 crore as of December 31, 2020.

As of December 31, 2020, unsold inventory in its affordable and mid-income projects constituted 52 per cent of the total unsold residential developments (by value).

For 9MFY21 and FY20, its affordable and mid-income projects contributed Rs 1,817.2 crore and Rs 3,055.3 crore to sales, which accounted for 57.78 per cent and 57.77 per cent of residential sales, respectively.

According to Anarock, 35 per cent of unsold stock in top seven cities was in the affordable segment (less than Rs 40 lakh) and 31 per cent in the mid-income segment, priced between Rs 40 lakh and Rs 80 lakh.

Photograph: Danish Siddiqui/Reuters

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