Godrej Properties to tap into Tier II cities, deliver 15 million sq ft in FY25: CEO

The company has a sales booking guidance of Rs 27,000 crore to deliver 15 million sq ft of real estate in FY25.

Listed real estate developer Godrej Properties Ltd is planning to tap into the Tier II cities in southern India, with strategic expansion plans, especially for plotted developments, Pramod Bisht, CEO (South) of Godrej Properties told Moneycontrol. "We are very actively looking for plotted development, not just in Bengaluru but also in the Tier 2 towns in southern India like Mysuru, Mangaluru, and Hosur," he added.

Speaking about the scope of expansion into Tier II cities, Bisht added that plotted developments allow developers to test the new markets and determine the demand for group housing.

According to the investors' presentation, Godrej Properties plans to launch 21.9 million sq ft in FY25 with an expected launch value of Rs 30,000 crore. The company has a sales booking guidance of Rs 27,000 crore to deliver 15 million sq ft of real estate in FY25.

"Southern India plays a very critical role in the overall Godrej portfolio because it's a stable and steady market. It is less speculative compared to the other other parts of India, and there is a strong end-user demand," Bisht added.

While the company has a strong presence in Bengaluru and Chennai, it forayed into Hyderabad earlier in 2024. In Hyderabad, it acquired its first 12.5-acre land parcel in Rajendra Nagar with a revenue potential of around Rs 3,500 crore in February. And in March, the company acquired three acres of land in Kokapet with an estimated booking value of Rs 1,300 crore.

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The company said it will not stop at these two transactions, hinting at ongoing acquisitions in the pipeline. "Currently from these two land parcels in Hyderabad, we are looking at premium to luxury launches. But historically around 20-25 percent of sales come from the southern market - so assuming the market remains strong, we will be looking at similar numbers from southern India in FY25," Bisht said.

Major real estate pipeline in north Bengaluru

Among the upcoming projects in FY25, Bisht said that the first one is Godrej Woodscape which is ongoing at the Whitefield-Budigere Cross. In July, the company sold over 2,000 homes worth over Rs 3,150 crore in the project.

"We also have a launch planned of a premium luxury project in the western part of Bengaluru in Yeshwanthpur. We also have a pipeline for a mini-township coming up in north Bengaluru. It's a 62-acre land parcel which will be developed in joint development. So it's a mixed-use project close to the Kempegowda International Airport," Bisht said.

He added that north Bengaluru has been the growth engine for plotted developments and villas. "The group housing activities are picking up in north Bengaluru and are set to continue as the economic activity also grows. But we have seen success in the plots, villas and also in some pockets for the apartments there," he added.

For southern India, Godrej Properties aims to stay in the mid-luxury segment housing with ticket sizes between Rs 1.5-4 crore.