Real estate prices in India are holding firm despite the challenging global macroeconomic environment, with the market entering what Pirojsha Godrej, chairperson of Godrej Properties, described as a ‘steady phase’.
Speaking during the company’s Q2 FY27 earnings call, Godrej said the Indian real estate market had demonstrated greater resilience than anticipated, particularly given the sector’s traditionally sentiment-driven nature.
Responding to a question on pricing trends across markets and the outlook, Godrej said prices were broadly holding up, reflecting market strength despite global uncertainties.
"So we are seeing prices kind of holding up. I would say broadly from my perspective, what we are seeing is actually a very strong market that has held up, in my opinion, much better than one would have thought it might, given the sentiment-driven nature of real estate," Godrej said.
He added that the company’s performance during the quarter was encouraging, with its sustenance sales exceeding ₹500 crore across projects in almost all the markets in which it operates.
"Given what we have seen in both markets and some of the global macro environment, I think that's been very encouraging for us in a quarter like this best ever sustenance sales, ₹500 crores plus sustenance sales in projects across pretty much all markets that we operate in is quite encouraging," Godrej said.
{{/usCountry}}"Given what we have seen in both markets and some of the global macro environment, I think that's been very encouraging for us in a quarter like this best ever sustenance sales, ₹500 crores plus sustenance sales in projects across pretty much all markets that we operate in is quite encouraging," Godrej said.
{{/usCountry}}Focus on top five markets; Chennai next on expansion radar
Godrej Properties will focus on expanding its presence across five key markets over the next two years: Mumbai, Delhi-NCR, Bengaluru, Pune and Hyderabad. The company also plans to enter Chennai with a group housing project, although it is not in a hurry to do so, Pirojsha Godrej said.
"Chennai will be the next market we enter from a group housing perspective, but I don't think we're in a buzzing rush to do that. There's a lot of growth opportunity available by focusing on these top five markets,” Godrej said.
The company is also evaluating projects on an opportunistic basis in Kolkata and Ahmedabad. However, its immediate focus will be on entering more micro-markets within its five key markets.
“We have seen, for example, the big jump in sales possible as we enter new micro markets. But obviously, Chennai is an attractive market. Tamil Nadu as a state, I think, is doing brilliantly economically. Chennai's real estate market should benefit from that over the medium term. So I think it is a market we see ourselves in eventually, but probably not a key focus for the next couple of years," Godrej said.
Also Read: Housing demand pretty strong across major cities but euphoria mellowing down: Pirojsha Godrej
Godrej Properties pre-sales may rise 22% to ₹41,500 cr in FY27, surpassing guidance on strong demand
Godrej Properties' sales bookings are expected to rise 22% this fiscal to a record ₹41,500 crore, surpassing its annual guidance on the back of strong demand for its residential projects, Pirojsha Godrej had earlier told PTI.
Godrej said consumer demand remained robust across the company's new and ongoing residential projects in all its markets. He added that housing demand across the broader real estate market had also remained steady despite global economic uncertainties triggered by the West Asia crisis.
On the outlook, Godrej said the October-December quarter (Q3 FY27) could be the company's best-ever quarter in terms of sales, driven by several major project launches.
“I expect Q3 (October-December) to be the company's best-ever quarter from a sales perspective because major launches are planned. Here in Mumbai, we have a project in Bandra, and in the Golf Course Extension in Gurugram, we have something,” he told PTI.
Godrej Properties reported a 62% decline in consolidated net profit to ₹154.15 crore for the quarter ended September, compared with ₹405.08 crore in the year-ago period, due to higher expenses.
However, the company's total income rose to ₹2,571.73 crore in Q2 FY27 from ₹1,950.05 crore in the corresponding quarter of the previous financial year.