Lodha CEO Signals India's Housing Market Has Years of Growth Ahead Before Full Take-Off

Abhishek Lodha, the CEO and Managing Director of Lodha Developers, has stated that the nation's residential property sector remains in its preliminary stages, comparing the current market phase to an aircraft still taxiing along the runway rather than achieving full flight altitude. In a statement released on November 3, 2025, from New Delhi, the industry leader provided insights into what he described as a generational transformation in the housing landscape.

Early Innings of a Long-Term Housing Transformation

According to Lodha, India's housing market is experiencing the beginning of what he termed a "once-in-a-lifetime transition," characterized by a fundamental shift from low-income to mid-income housing demand. The executive emphasized that the sector is positioned at the start of an extended growth trajectory, with the complete real estate cycle potentially spanning 15 to 20 years ahead.

The CEO revealed that the country is merely four or five years into this extended cycle, suggesting substantial runway remains for market expansion. He projected that genuine acceleration in the housing sector will likely materialize when the nation's GDP per capita surpasses the threshold of USD 4,000 to USD 4,500, a milestone that would unlock broader purchasing power across income segments.

Mid-Income Segment Driving Company Growth

For Lodha's development portfolio, the mid-income housing category has emerged as a significant contributor to overall sales performance. The company disclosed that approximately 50 percent of its sales revenues now originate from mid-income housing projects, while luxury properties account for 12 to 15 percent of transactions, with the remaining sales distributed across other housing categories.

This strategic focus on the mid-income segment aligns with broader demographic shifts as India's middle class expands and purchasing power increases across urban centers.

Strong Financial Performance in Q2 FY26

The developer's financial results for the second quarter of fiscal year 2026 demonstrated robust growth metrics. The company reported an 87 percent year-on-year increase in net profit, reaching ₹789.8 crore for the quarter. Total income expanded by approximately 44 percent to ₹3,878.7 crore, reflecting strong demand across the company's project portfolio and stabilizing market conditions.

Long-Term Structural Opportunity for Real Estate Sector

The assessment provided by Lodha carries significant implications for stakeholders across the property ecosystem. The characterization of the market being "still on the runway" indicates that substantial growth opportunities remain ahead rather than behind the sector, contradicting perceptions that the current housing boom may be nearing its peak.

Industry observers note that developers may increasingly orient their strategies toward the mid-income segment, particularly given supportive government initiatives including interest rate adjustments, tax relief measures, and affordable housing schemes designed to facilitate homeownership across broader income demographics.

Investment Perspective and Market Outlook

For property investors, Lodha's perspective suggests that real estate investments should be approached with longer time horizons rather than expectations of immediate appreciation. The executive's runway analogy implies that while momentum is building, the most significant phase of market expansion remains in the future rather than being an artifact of past performance.

Prospective homebuyers may benefit from positioning themselves during this early-stage phase in markets demonstrating growth potential, rather than anticipating immediate price surges. The emphasis on structural transformation over cyclical fluctuations points to sustained demand generation as economic fundamentals continue strengthening.

The broader real estate landscape across major metropolitan markets continues to show resilience, with developers expanding project pipelines and institutional investors maintaining confidence in the sector's long-term prospects. As India's urbanization continues and infrastructure development accelerates, the housing market appears positioned for sustained growth across multiple segments.