Overseas uncertainty is likely to prompt more Non-Resident Indians (NRIs) to establish a home base in India, while immigration-related concerns could drive a similar trend among US-based buyers, said Abhishek Lodha, MD, Lodha Developers.
“Uncertainty abroad is and will cause NRIs to want to secure a home base in India. We expect to also see the same pattern from US-based buyers for immigration-related reasons. Last year, about ₹350 billion flowed from India into Dubai real estate. A material part of that will now stay in India,” Lodha said during the company’s investors’ call for Q1 FY27.
Lodha said the ongoing Middle East crisis has had a moderate impact on demand. Middle East-based NRI buyers account for around 4% to 5% of Lodha’s sales, or roughly a third of its overall NRI business, and sentiment among these buyers remains subdued.
“In terms of where the Middle East situation stands now, the conflict has not resolved by the end of Q1 as we had assumed. Let me give you an updated assessment rather than just assume that everything is normalized. The demand impact is quite moderate. Middle East NRI buyers represent about 4% to 5% of our sales, roughly a third of our total NRI business, and sentiment there remains subdued,” Lodha said.
Despite the prolonged US-Iran war, Lodha said the company expects to maintain its pre-sales guidance.
Asked whether an end to the war could provide an upside to the company’s guidance, Lodha said it was difficult to assess the impact without knowing when or how the conflict would end.
“This question is something which is very difficult for us to form a view on because when will the war end, what will be the nature ‘of the end?’ And how will that impact demand?”
“So far, what we see is that the impact is contained. The duration has extended beyond what we assumed, but we don’t yet, given the other strengths, expect that we will maintain our pre-sales guidance. And let’s review it once it actually ends and what that nature of the end is,” he said.
Price rise due to supply chain pressure
Lodha said the company’s largely domestic supply chain has helped contain cost pressures. However, a prolonged conflict could push up construction costs.
“On the cost side, our supply chain is about 95% domestic, so availability has not been a problem. Energy-intensive input costs have risen. If this situation persists for a full year, we would expect project construction costs to rise by between 1% to 1.5%,” Lodha said.
For context, he said the company’s overall construction cost inflation since April 2022 has averaged around 3% annually.
“On the evidence in front of us today, the impact does not look materially negative to our FY27 delivery. If Russia-Ukraine is any guide, this kind of volatility works itself out over the medium term, and we will, of course, keep you updated if that assessment changes,” Lodha said.
In April 2026, Lodha had said that the impact of the Middle East crisis on construction costs is currently around 3–5% of overall costs. He had noted that gas-dependent material categories have been the most affected, while the overall impact on margins remains ‘very nominal.’
Lodha had said there was a sales shortfall in March from NRIs based in the Middle East, along with some moderation in deal closures in the luxury segment, as homebuyers reacted to the sudden developments.
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Lodha Developers to monetise 150 acres at data centre park in MMR for ₹10,000 crore
Lodha Developers Ltd is planning to sell 150 acres of land in the next 3-4 years at its data centre park in the Mumbai region for nearly ₹10,000 crore as part of its asset monetisation strategy, according to the company’s announcement during the call.
During the call, Lodha highlighted that land monetisation is not an exceptional item for this company; it is a planned, recurring pillar of business.
Lodha said the company now holds about 660 acres for luxury-segment deal closures at its data centre park in the Mumbai Metropolitan Region (MMR). “Of this, the first phase of 370 acres, we have already monetised about 130 acres, and we intend to further monetise about 150 acres over the next 3-4 years, which itself will generate close to ₹10,000 crore of sales,” Lodha said.
