Godrej Properties, India’s largest residential developer, sees huge room to expand

Bengaluru: Godrej Properties Ltd will look at profitable growth, expansion through land acquisitions, and build scale through higher market share, said a top company executive.

The Mumbai-based developer has achieved 71% of its 2024-25 sales guidance of ₹27,000 crore on the back of strong housing demand and sales. In FY24, the company clocked ₹22,500 crore of sales bookings, making it the highest selling developer.

“We will meet the sales guidance in the fourth quarter, which is said to be the strongest quarter in real estate. We have a number of launches coming up in multiple cities including Hyderabad, Noida, Pune, Gurugram. There are also two luxury projects in Mumbai which will be launched,” Pirojsha Godrej, executive chairperson, Godrej Properties, said in an interview.

Net profit up

On Tuesday, the company reported a 152.23% rise in net profit to ₹158.20 crore for the October-December quarter, compared to ₹62.72 crore a year earlier. Revenue jumped 193.2% to ₹968.88 crore during the same period.

“We are the largest residential developer in the country today, but we have a modest single-digit market share in the property markets we operate in. In FY24, we just about touched 10% market share in NCR, which is possibly our largest market. So, there is huge room for growth for Godrej Properties,” Godrej said.

The three-month period through December was the sixth consecutive quarter when Godrej Properties clocked over ₹5,000 crore in sales bookings, the company said, underlying the sectoral tailwinds for India’s residential real estate sector.

In FY25 so far, the company has added projects of future sales value of over ₹23,000 crore, surprassing its ₹20,000 crore annual guidance.

In December, Godrej Properties raised ₹6,000 crore by selling shares to institutional investors, including Singapore sovereign wealth firm GIC, Blackrock, and SBI Pension, through a qualified institutional placement (QIP) as it looks to expand business amid strong demand for residential plots and apartments.

Growth pace boost

“This capital allows us to further increase the pace of growth. We need to continue executing well, keep acquiring land and launching projects, and have a stronger presence across the cities we are present in, to gain market share,” Godrej said.

Around 80-90% of its group housing projects will be focused on the key cities it operates in, which includes Mumbai Metropolitan Region (MMR), Delhi-National Capital Region, Pune, Bengaluru and Hyderabad. Godrej Properties will opportunistically look at markets such as Kolkata and Ahmedabad.

For plotted development projects, “we are happy to go to the top 20 or more cities”, Godrej said.

After clocking around ₹73,000 crore of residential sales bookings in FY24, a milestone for India’s real estate sector, the top four publicly listed developers—Godrej Properties, DLF Ltd, Macrotech Developers Ltd and Prestige Group–are collectively targeting nearly ₹88,000 crore of sales in FY25.