Robust Home Price Growth Observed in Key Markets: Godrej Properties

2024-10-24 03:25:24

Gaurav Pandey, Managing Director and CEO of Godrej Properties, informed investors that significant price growth is anticipated in key NCR markets such as Gurugram and Noida. 

In an earnings call following its second-quarter (Q2) financial results, the management of Godrej Properties addressed concerns about a perceived slowdown in home sales, stating that there has been no decline in purchases across its major markets. In fact, the company has observed the strongest price growth in the Delhi-NCR and Bengaluru regions, with similar upward trends in the Mumbai Metropolitan Region (MMR).

Pandey highlighted that the price rise in Noida is largely due to a severe land supply shortage. He also noted that Pune, another important market for the company, is expected to follow MMR’s growth trajectory with a delay of about two to three quarters.

Dismissing concerns of a market downturn, Pandey emphasized that demand remains robust, though he pointed out that certain peripheral areas in major cities could see price saturation.

In the first half of FY 2025, Godrej Properties reported booking values of Rs 13,835 crore, nearly double the amount from the same period last year. Executive Chairman Pirojsha Godrej stated that the company is on track to surpass its FY25 booking value target of Rs 20,000 crore, bolstered by several planned project launches.

Since the end of Q2, Godrej Properties has acquired additional land in Kharghar, Navi Mumbai, and Vastrapur, Ahmedabad, with potential revenues of Rs 3,500 crore and Rs 1,300 crore, respectively. The company also plans to launch new projects in upscale areas like Worli in Mumbai, Noida, and "two to three" in Bengaluru during the second half of FY25, with further projects planned in Kolkata and Hyderabad.

Long-awaited projects in Ashok Vihar, North-West Delhi, and Vikhroli, Godrej’s home base, are expected to launch in FY26, according to the Executive Chairman.