Godrej Properties Acquires Six Land Parcels in Q2 to Build Projects Worth ₹9,650 Crore
Godrej Properties has continued its expansion in the second quarter of the fiscal year 2024-25 by acquiring six new land parcels with an estimated project value of ₹9,650 crore. This move aligns with the company's strategy to tap into the rising demand in India's housing market, which has seen significant growth in recent times. The real estate developer, which is known for its presence in Delhi-NCR, the Mumbai Metropolitan Region (MMR), Pune, and Bengaluru, is positioning itself to take advantage of favorable market conditions.
In its latest operational update for the second quarter, the company reported adding eight new land parcels during the first half of the fiscal year, covering a saleable area of 11 million square feet. This represents a booking value potential of ₹12,650 crore, ensuring a steady pipeline of projects for the future. Godrej Properties acquires land through outright purchases and partnerships with landowners for joint development, allowing flexibility in expanding its portfolio.
The Indian housing market has been experiencing strong recovery post-pandemic. Increased urbanization, low-interest rates, and a shift in consumer preferences toward larger homes have boosted demand. Godrej Properties has effectively capitalized on this trend. In the second quarter, the company recorded sales bookings of nearly ₹5,200 crore, marking a 3% year-over-year increase. This also represents the highest-ever Q2 booking value achieved by the company. In the first six months of the fiscal year, total sales bookings reached over ₹13,800 crore, reflecting an 89% growth compared to the same period in the previous year.
The company’s strong acquisition strategy has already achieved 63% of its annual land acquisition targets. This ensures a robust pipeline of housing projects, including high-profile developments such as those along Golf Course Road in Gurugram, a key market for luxury real estate. The company’s recent entry into Indore further demonstrates its efforts to diversify and expand its reach into new markets.
Gaurav Pandey, MD & CEO of Godrej Properties, has highlighted the company's strategic acquisitions that will enhance its project pipeline for both the current year and the years ahead. The firm is particularly focused on developing high-profile projects along the prestigious Golf Course Road in Gurugram. Additionally, Godrej Properties has made a significant move by entering the Indore market, recognizing its potential for future growth.
Mr. Pandey has emphasized the company's long-term strategy, which is based on a thorough understanding of key real estate markets in India. He expressed optimism about the opportunities in the coming years, confident in the company’s ability to sustain high-quality performance across all critical operational metrics.
Godrej Properties has established a strong presence in India’s real estate sector, with sales bookings increasing to ₹22,527 crore last fiscal year, an 84% rise from ₹12,232 crore the previous year. This growth made it the largest listed real estate firm in India by sales bookings. For the current fiscal year, the company aims for sales bookings of ₹27,500 crore, backed by favorable market conditions and sustained housing demand.
The acquisition of these six new land parcels is expected to contribute significantly to the company’s future growth, ensuring a steady flow of residential projects. The combination of ongoing developments and a strong pipeline of future projects puts Godrej Properties in a strong position to maintain its leadership in the real estate sector. Its business model, which combines land acquisition with joint ventures, has enabled the company to remain competitive while meeting the demands of a growing market.
