Due to strong housing demand, Godrej Properties Ltd acquired 18 land parcels last fiscal for the development of new projects with a sales potential of around Rs 32,000 crore.
For future development, Mumbai-based Godrej Properties, part of the Godrej Group, plans to add land parcels with sales revenue potential of Rs 15,000 crore.
In contrast, the company’s new business development, which means adding new land parcels, has more than doubled its annual guidance.
To expand its business, Godrej Properties acquires land outright and enters into joint development agreements (JDAs) with landowners.
According to a recent regulatory filing, the company presented its operational performance for 2022-23.
In FY23, Godrej Properties added 18 new projects totaling nearly 29 million square feet with a total estimated booking value of around Rs 32,000 crore. In the fourth quarter of last fiscal, five new projects were added with an estimated sales booking value of Rs 5,750 crore.
The company acquired an 18-acre land parcel in Kandivali, Mumbai for Rs 750 crore to develop a luxury housing project with an estimated revenue potential of Rs 7,000 crore in FY23.
A luxury housing project is also being developed in Raj Kapoor’s bungalow at Chembur in Mumbai.
Pirojsha Godrej, the executive chairman of Godrej Properties, announced in February that the company would invest around Rs 7,500 crore over the next 12-18 months.
Having accumulated huge cash reserves, Godrej Properties entered the land market aggressively to acquire land parcels. In the last fiscal, the company purchased more land outright than signed joint development agreements with landowners
As a result of strong demand for residential properties, Godrej Properties’ sales booking rose 56 percent to Rs 12,232 crore last fiscal, an all-time high.
The strong growth in FY23 was attributed to the company’s strong portfolio of projects across the country, according to Pirojsha Godrej.
The company sold real estate worth over Rs 2,000 crore in each of its four focus markets: Mumbai Metropolitan Region (MMR), Delhi-NCR, Bengaluru and Pune.
Last fiscal, the housing segment contributed 99 percent of total sales bookings.
According to Pirojsha, the company plans to build on this sales momentum in FY24.
In 2022-23, sales volumes grew by 40 percent to 15.21 million square feet from 10.84 million square feet in 2021-22.
Over 10 million square feet of projects were delivered across five cities in FY23.
- How RBI’s Pause is Boosting Confidence in India’s Real Estate Sector and Driving Stock Prices Up
- Steps to understand 1031 exchange rules for Real Estate investors
- PropTech Boom – Real Estate-focused Startups Increase 200% Since 2016
- PE Investors Infuse $1,215 Mn into NCR Real Estate in 9M FY23 – a 58% Y-o-Y Rise