Godrej Properties bought 18 land parcels in FY23

Real estate company Godrej Properties Ltd, encouraged by the robust housing demand, purchased 18 land parcels last fiscal year for the development of new projects with an estimated sales potential of over Rs 32,000 crore.

The Mumbai-based Godrej Properties, a division of the Godrej Group, has stated that it will add land parcels with a potential sales revenue of Rs 15,000 crore for future development.

The company’s new business development, which entails the addition of additional land parcels, increased by more than twice the amount anticipated for the year.

In order to build a pipeline of future projects and grow its business, Godrej Properties buys property outright and also engages in joint development agreements (JDAs) with landowners.

The company provided its operating performance for 2022–2023 in a recent regulatory filing.

According to Godrej Properties, it has added ’18 new projects in FY23 with a total estimated saleable area of nearly 29 million square feet and a total estimated booking value of around Rs 32,000 crore.’

Five new projects were added in the fourth quarter of the previous fiscal, with an anticipated sales booking value of Rs5,750 crore.

One of the high-profile transactions in FY23 saw the business pay Rs 750 crore to purchase an 18-acre plot of land in Kandivali, Mumbai, with plans to build a luxury home complex with a potential market value of nearly Rs7,000 crore.

In order to build a luxury housing complex, it also bought Raj Kapoor’s bungalow in Mumbai’s Chembur neighborhood from the famed actor, director, and producer.

Pirojsha Godrej, the executive chairman of Godrej Properties, stated in February of last year to ET that the business would spend approximately Rs7,500 crore over the following 12 to 18 months on the acquisition and development of new real estate projects.

Godrej Properties aggressively entered the market to buy land tracts while sitting on a substantial financial reserve. In the previous fiscal year, it made direct purchases of more land than it did JDAs with landowners.

Due to the growing demand for residential buildings, Godrej buildings’ sales booked increased 56% previous fiscal year to Rs12,232 crore, setting a record.

Pirojsha Godrej credited its excellent portfolio of national projects for the company’s outstanding success in FY23.

For the first time, the company sold real estate worth more than Rs2,000 crore in each of its four target markets: Bengaluru, Pune, Bengaluru Metropolitan Region (MMR), Delhi-NCR.

99% of the total sales bookings for the previous fiscal year were from the housing market.

Sales volumes increased by 40% to 15.21 million square feet in 2022–2023 from 10.84 million square feet the year before.

In FY23, the company completed projects totaling more than 10 million square feet in 5 cities.

For feedback and suggestions, write to us at editorial@iifl.com