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Macrotech Developers, the real estate firm renowned for its Lodha brand, is set to invest around Rs 800 crore in the construction of two housing projects in Bengaluru as part of its expansion strategy, responding to robust demand in the market. According to the company's MD and CEO, Abhishek Lodha, these projects aim to capitalize on the strong demand witnessed in Bengaluru, where the company has already entered the market by forming a joint venture for its initial housing project in June last year, followed by the addition of another project. Macrotech Developers recently launched its first residential project in Bengaluru, aligning with its strategic expansion into tech hubs. The second project is slated for launch in the fourth quarter of the current fiscal year, possibly extending to the first quarter of the next financial year. The estimated construction cost for both projects is around Rs 800 crore, with a projected gross development value (GDV) of approximately Rs 2,500 crore. Apartments in these projects will be priced between Rs 1.5 and 2.5 crore. Abhishek Lodha emphasized that the company remains committed to its core markets, primarily focusing on the residential markets in Mumbai Metropolitan Region (MMR) and Pune. In Bengaluru, Macrotech Developers intends to concentrate on the sales, marketing, and successful execution of these two projects before contemplating further expansion. Macrotech Developers posted strong operational performance, with sale bookings reaching Rs 6,890 crore in the first half of this fiscal year, up from Rs 6,000 crore in the same period last year. A robust launch pipeline has Abhishek Lodha, the company's CEO, confident about exceeding the current fiscal year's sales target of Rs 14,500 crore, compared to Rs 12,070 crore in the previous year. Macrotech Developers plans to launch 8 million square feet in H2 of this fiscal, targeting an estimated sales value of Rs 12,000 crore. The company strategically acquired seven new land parcels in Mumbai Metropolitan Region (MMR) and Bengaluru between April and September, with a sales potential of Rs 14,300 crore. Abhishek Lodha noted that the company has already achieved over 80 percent of its annual target for new business development. Of the seven parcels, six are in MMR and one in Bengaluru, and discussions for additional parcels are ongoing, primarily in MMR and Pune. Macrotech Developers reported a consolidated net profit of Rs 202.8 crore for Q2, rebounding from a net loss of Rs 932.9 crore in the same period last year. Despite a marginal decline in total income to Rs 1,755.1 crore, the company remains resilient and optimistic about its consistent performance. Abhishek Lodha highlighted sustained demand in the real estate sector, noting it is in the third year of a long-term upcycle of at least 15 years. Despite challenges, home loan interest rates, which have peaked, are anticipated to moderate, according to Abhishek Lodha, the MD and CEO. Emphasizing robust affordability and consumer confidence, he highlighted the strengthening of demand conditions at the ground level. Lodha concluded by stating that the ongoing consumer preference for quality homes from branded developers with superior amenities continues to drive consolidation, benefiting companies like Macrotech Developers. This story was earlier published in the Economic Times
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