Strong home price growth seen across key markets: Godrej Properties

For the second half of the ongoing fiscal, Godrej Properties has multiple launches lined up, including at Worli in Mumbai

Real estate major Godrej Properties' management said in an earnings call after its second-quarter (Q2) financial results that contrary to concerns about a perceived slowdown in home sales, it has not seen any dip in home purchases across its key markets. The management cited that it has seen the highest price growth in the Delhi-National Capital Region (NCR) and Bengaluru. Similarly, there has been an upswing in prices the Mumbai Metropolitan Region (MMR), it added.

Gaurav Pandey, Managing Director (MD) and Chief Executive Officer (CEO), Godrej Properties, told investors that price growth is expected in key NCR markets such as Gurugram and Noida.  He attributed the uptick in prices in Noida to an acute crunch in the supply of land. Pune, another emerging and key market for the company, will only lag behind MMR  "by around two to three quarters".

Pandey allayed the misconceptions about a depressed market sentiment. He maintained that the demand remained strong while drawing attention to some micro-markets in major cities. Some peripheral areas in these cities could see saturation as far as price points are concerned, he added.

In the first half of financial year (FY) 2025, Godrej Properties reported a booking value of Rs 13,835 crore — nearly twice that of the same period last year. Pirojsha Godrej, the company's Executive Chairman, pointed out that the company expects to cross its booking value guidance in FY25 of Rs 20,000 crore on the back of a number of planned launches.

Since the end of the July-September quarter, the company has secured additional land parcels at Kharghar in Navi Mumbai and at Vastrapur in Ahmedabad. The revenue potential of Kharghar and Vastrapur is around Rs 3,500 crore and Rs 1,300 crore, respectively.

Godrej Properties is looking at launching new projects at upscale Worli in Mumbai, Noida and another "two to three" in Bengaluru in the second half of FY25. New launches are also planned in Kolkata and Hyderabad during the same period.

Long-pending launches such as at Ashok Vihar in north-west Delhi and Vikhroli, which is Godrej's home turf, may take place in FY26, the Executive Chairman said during the call.