Abhinandan Lodha plans to 'cut flab', integrate technology in affordable housing push

Abhinandan Lodha plans to do away with site offices and sales teams, and increase the use of AI to drive sales and reduce overheads

Abhinandan Lodha-backed Growth Housing, part of the Abhinandan Ventures group that plans to set up multiple affordable housing projects in the Mumbai metropolitan area, said at a press briefing that it plans to revive the sector, in a flux due to the lack of new supply and consequently sales, through cutting down on expenses to acquire customers.

This includes, Abhinandan said, cutting down on large sales teams, doing away with sales offices and sample flats, large orders to contractors and suppliers, and integrating technology such as AI-powered chatbots to move to a largely faceless sales process.

"Our theory is that if we can cut down on the flab that comes with the cost to acquire a customer, we can provide an attractive price point to customers. In a traditional affordable housing project, the sales and construction timelines are often around eight to ten years, and orders to contractors are often in phases. The cost of acquisition includes pickups for customers, as well as a site office and sample flat. With these savings, we can deliver a benefit of around 20-25 percent to customers," Abhinandan said.

He added that while a number of users at its first project have self-registered on the company website, many have also come through the channel partners. Abhinandan, however, said that despite the "digital-only" approach in sales, including the use of AI, it does not see channel partners to be competition to its sales model.

Growth Housing has launched its first project at Naigaon, The Great Western Mumbai, with prices starting at around Rs 33 lakh for a one-bedroom apartment. The project is being constructed as a joint development, with a revenue sharing model agreed with the landowners Mittal Builders.

The company said that for the 1,419 flats on offer, it has received nearly 9,000 applications. While around half of the inventory is one-bedroom flats, the project, located in the Vasai-Virar civic limits, also has two-bedroom apartments priced at around Rs 50 lakh and Rs 68 lakh in two layouts. The land has a development potential of nearly 3 million square feet, with sales expected to be conducted in three phases.

The current phase of the project is expected to be delivered by 2029. Abhinandan Ventures, which also includes the plotted development firm The House of Abhinandan Lodha, is investing around Rs 200 crore in the project by way of equity, while it has also secured financial closure from various banks in order to fund construction for the project.

With more applications than inventory, Abhinandan said that registrations for the project have closed, and allotments will be carried out on September 28 on a first-come-first-serve basis for registered users, upon payment of Rs 999, and further payment of 10 percent of the agreement value within a specified number of days. Abhinandan said that the firm plans to carry out one major similar sale activity per year.

Asked about the pipeline under the Growth Housing platform, Abhinandan said that the firm has identified seven locations in the Mumbai metropolitan region, including near the upcoming Navi Mumbai international airport. However, he said that talks are still on with landowners in order to secure joint development agreements.