Mumbai-based Lodha Group to use an innovative IPO allotment-like automated algorithm system to sell apartments at its latest 17.5 acre premium project Lodha Blue Moon at Lower Parel in central Mumbai.
This type of draws to sell residential apartments is nothing new and government agencies like MHADA and DDA have done it for years in the past. But this is for the first time that a private builder has adopted this strategy, and in this case, for high-end premium apartments.
Unlike earlier projects, Lodha is not charging any premium for a specific view and therefore also not promising one. Based on the buyers' application, the system will be given inputs like typology, floor preference and most importantly, the ticket price range.
Based on these inputs, the automated pre-programmed algorithm system will allot an apartment to a buyer. "We are making this a very open and transparent process. There won't be any different rate and terms for any customer. The pricing is almost 45-50% lower than the ticket price for any three or four-bedroom apartments available in the vicinity. We hope to get a solid response to our offering," said Abhisheck Lodha, managing director of Lodha Group.
When asked if there's a possibility of more investors entering the project other than just end users, Lodha clarified that the buyer won't be allowed to sell an apartment until the possession formalities are over. In the backdrop of a sluggish scenario in realty market, developers are pulling all stops to improve sales volumes.
According to property consultants, given the large size of the Mumbai Textile Mills plot, Lodha is getting the flexibility to use volume strategy even in the luxury product segment.
The proposed project Blue Moon is coming up on Mumbai Textile Mills plot that Lodha recently acquired from DLFBSE -0.36 % for Rs 2,725 crore. The builder is currently launching two towers out of a total six that are planned on this plot.
The offer will remain open from January 18 to January 27 for prospective customers. Under this launch, customers can bid for four typologies covering 2-bedroom spread over around 1,370 sq ft, 3-bedroom of 1,670 sq ft and 2,000 sq ft size and 4-bedroom of around 2,300 sq ft.
The special prelaunch pricing for a 2-bedroom apartment will start at around Rs 3.5 crore, a 3-bedroom flat for around Rs 4.5 crore, while a 4-bedroom for Rs 6.75 crore.
Around 500 apartments will be launched under this offering and Lodha expects total bookings of nearlyRs 3,000 crore though this first phase. Certain special limited apartments will not be released in this offer, he added.
Construction of the project has already started and Lodha expects it to be delivered by 2017. According to property consultants, Lodha's pricing is very aggressive compared with other projects in central Mumbai, especially Lower Parel and Worli and the ticket sizes are nearly similar to those currently offered in suburbs like Andheri and Vile Parle.
"It will be interesting to check the exact response to the product later. If it turns out to be a successful launch, given the aggressive pricing and new approach, the offering is likely to change the way projects are developed and sold," said a property consultant. Lodha is confident that when the launch starts at around April 2013, prices will be at least 25% higher than the pre-launch prices offered now.
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For details on Lodha Blue Moon in Lower Parel, Mumba visit www.lodhagroup.com
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