Lohia Global, a conglomerate spanning multiple sectors, is entering the real estate market through its subsidiary, Lohia Developers, targeting India's premium housing segment in tier-II cities. With a substantial investment of INR 1,000 crore, they plan to develop five projects covering 30 lakh square feet in Moradabad, Lucknow, and Delhi NCR over five years. Director Pyush Lohia cites increasing demand for high-quality housing in tier-II cities, driven by rising disposable incomes. With a significant land bank, they aim to construct 175 villas in Moradabad initially, followed by group housing projects in Delhi and Lucknow. This strategic move aligns with Lohia Global's ambitious revenue target of USD 1 billion by 2030, with real estate projected to contribute significantly. While their focus on tier-II cities and premium housing presents a novel approach, its success will be closely monitored by industry observers.
Lohia Global, a well-established conglomerate with a 44-year presence in sectors like exports, energy, manufacturing, and automobiles, is venturing into the real estate market through its subsidiary, Lohia Developers. This shift signifies Lohia's ambition to capture a share of India's growing premium housing market, with a particular focus on tier-II cities.
Traditionally, the real estate market, especially in tier-II cities, has seen a strong demand for affordable housing options. However, Lohia Developers is taking a calculated risk by targeting the upper-mid and premium segments in these regions. The company has invested INR 1,000 crore to develop five residential projects spread across 30 lakh square feet area in Moradabad, Lucknow, and Delhi NCR over the next five years. This bold move is based on their research indicating a rising demand for modern, high-quality housing options in tier-II cities.
Pyush Lohia, Director of Lohia Developers, explains their decision by stating that they recognise the rising demand for modern and high-quality housing in India's urban areas and tier-II markets. Lohia mentions that land prices in major metros have skyrocketed in recent years, making it challenging to develop affordable housing projects. However, tier-II cities offer a unique opportunity. He believes that there's a growing segment of buyers in these regions with strong financial standing who are looking for premium living spaces. This strategy aligns with reports suggesting an increase in disposable income and a growing preference for better living standards in tier-II cities.
Lohia Developers currently holds a significant land bank, with over 100 acres in Moradabad alone. This strong foundation allows them to begin development on several parcels in the coming years. The first phase will see the construction of 175 villas in Moradabad, with an investment of INR 150 crore. These villas will boast an average ticket size of INR 1 crore, catering to the discerning buyer seeking a premium lifestyle in a tier-II city. Following the success of this initial project, Lohia Developers has plans to expand into group housing projects in Kirti Nagar, Delhi (2.5 acres with a development potential of 1 million sq ft), and Lucknow (12 acres). Discussions are also underway for a potential development management model project in Delhi.
Lohia Global's foray into real estate is a strategic move with significant long-term implications. The company anticipates a 15% growth in overall revenue for FY24 and has ambitious plans to reach USD 1 billion by 2030. Their real estate venture is projected to be a major contributor to this growth, with a cumulative revenue target of INR 4,000 crore by 2030. This would position real estate as a significant source of income for Lohia Global.
Lohia Developers' focus on tier-II cities and premium housing presents a unique strategy within the current market landscape. While the success of this approach remains to be seen, it has the potential to disrupt the traditional tier-II market dynamic. Industry experts will be closely watching the progress of their initial projects, particularly the Moradabad villas, to gauge buyer response and potential impact on the market.
Advertisement
Facebook
Whatsapp
