Kalpataru to Focus on Premium Housing Amid Luxury Market Concerns; ₹1,590 Cr IPO Opens Next Week

As it gears up for its ₹1,590 crore initial public offering (IPO), real estate veteran Kalpataru Ltd is shifting its focus towards the premium housing segment priced under ₹3 crore, with plans to strengthen its market share in Mumbai and Pune.

This strategic push comes at a time when concerns are emerging about a slowdown in the luxury and ultra-luxury housing segment, following a high-performing year for top-tier real estate in 2024. However, Kalpataru’s leadership believes the perceived slowdown is more about pricing anomalies than actual demand.

Developers’ Expectations Influenced by High-Priced Deals

In a recent interaction, Kalpataru’s top management, including Managing Director Parag Munot, CFO Chandrashekhar Joglekar, and Executive Director Narendra Lodha, addressed these market concerns. They pointed out that some of the slowdown speculation at the upper end of the housing market may be linked to above-market pricing and landmark deals, which have distorted expectations for other projects.

“Any slowdown in luxury is not because demand has disappeared, but because some landmark deals have raised unrealistic price expectations among developers,” the management said.

Premium Housing Seen as Stable and Scalable

Kalpataru’s current strategy reflects a clear preference for the sub-₹3 crore segment, which it views as more reliable and scalable in key metros.

“70% of our portfolio is in the sub-₹3 crore segment, which is more stable in Mumbai,” said Parag Munot.
“Around 10% is in the ₹3–10 crore bracket, which also sees steady demand. Only 20% of our projects fall into the luxury space priced above ₹10 crore, mainly in Worli and Bandra,” he added.

Despite caution surrounding high-end housing, Kalpataru remains optimistic. The company emphasized that luxury homes are still selling, particularly when they’re part of high-quality redevelopment projects that offer premium amenities and come with the backing of a trusted brand.

IPO Launch Marks Major Milestone

With a five-decade legacy, Kalpataru is now looking to raise ₹1,590 crore through its IPO, which is set to open next week. This move not only aims to fund its future growth plans but also signals confidence in the current real estate cycle.

Kalpataru is doubling down on premium housing as it readies its IPO—betting on stability in the sub-₹3 crore space while keeping a selective presence in luxury.

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