Godrej Properties expects its Ashok Vihar housing development in Delhi to generate sales of Rs 8,000 crore

According to executive chairman Pirojsha Godrej of the real estate company Godrej Properties, the company would introduce a brand-new luxury housing development in Delhi's Ashok Vihar this year with a potential sales income of nearly Rs 8,000 crore.

Godrej Properties Ltd. (GPL), a Mumbai-based company that is a member of the commercial behemoth Godrej group, is awaiting a few final government clearances before beginning construction on this 27-acre luxury residential project in Delhi-NCR, its highest performing market the previous fiscal year.

Godrej Properties purchased a nearly 27 acre block of land in the national capital in February 2020 for Rs 1,359 crore with the intention of building a premium housing project. Rail Property Development Authority owned the piece of land (RLDA).

Over 3 million square feet of the land are thought to be developed. Pirojsha Godrej responded to analysts' inquiries on the start of the Ashok Vihar project, saying, "I think we have been making solid progress on the approval. There are still a couple of unresolved issues. Therefore, we anticipate launching that in Q3.

The executive chairman of GPL stated that the Delhi-NCR market has been "actually doing very well, both from a volume and pricing viewpoint" in the conference call transcript that was issued on the stock exchanges. In spite of the fact that we are obviously dissatisfied by the delay and anxious to begin the project from the standpoint of pure financial rewards, Pirojsha said, "I think the project only appears better now than it did a year or two ago."

He claimed that the corporation does not have a practise of building sizable land banks with regard to prospective land banks in Delhi-NCR. We have some planned projects in NCR. Phases of ongoing projects still need to be completed. Ashok Vihar is a potential booking opportunity worth at least Rs 8,000 crore. Naturally, it is also one of the markets for fresh capital deployment, according to Pirojsha.

Nearly 40% of the GPL's sales bookings during the most recent fiscal year, which totaled Rs 7,861 crore, came from the Delhi-NCR area. The company recorded booking value of Rs 847 crore in the Delhi-NCR region even in the first quarter of this fiscal year, out of total sales bookings of Rs 2,520 crore.

The business debuted its tiny, opulent "Godrej Connaught One" project in May, next to Connaught Place in the heart of Delhi. It has already started a project in South Delhi's Okhla.

The GPL has added projects in Badarpur and Sonipat in addition to its significant market presence in Gurugram, Noida, and Greater Noida. The business debuted its tiny, opulent "Godrej Connaught One" project in May, next to Connaught Place in the heart of Delhi. It has already started a project in South Delhi's Okhla.

According to Pirojsha, the business is optimistic about generating significant growth in the NCR over the coming years. However, he added, "I think we have to continue to fire from the BD (Business Development) side as well, for sustained long-term growth." He made this statement to investors.

In order to construct real estate developments, Godrej Properties purchases property outright, creates joint ventures, and enters into joint development agreements (JDAs) with landowners. Therefore, Pirojsha stated, "We see good potential to add materially to the portfolio and are looking at some intriguing things in NCR as well.

Pirojsha Godrej recently stated in an interview with PTI that the GPL plans to develop new home projects worth over Rs 15,000 crore during this fiscal year through outright land purchases and cooperative ventures with landowners.

In terms of sales bookings, he claimed the company had a "strong" first quarter. During the months of April to June 2022, sales surged five-fold to Rs 2,520 crore, setting a record for the greatest first-quarter revenues.

Despite a rise in mortgage interest rates and an increase in house costs, he anticipates that sales momentum will continue in the remaining quarters of this fiscal year.

"Our target for booking values for the current fiscal year was set at Rs 10,000 crore. Since sales are typically at their highest in the third and fourth quarters, we have already reached 25% of our goal, which is a terrific start, according to Pirojsha.

He responded that the business would like to "stay with this for now" when asked if it would raise its sales booking target. The GPL established a target of Rs 10,000 crore for FY23 and recorded sales booking of Rs 7,861 crore for the fiscal year 2021–2022.

About 20 residential projects, including new ones and new phases of existing projects, are part of the company's launch plan. In contrast to 6.5 million square feet in 2021–22, it anticipates delivering 10 million square feet during the current fiscal year.

The pipeline for acquiring additional land parcels for development is very solid, according to Pirojsha. In all four of its key markets—Mumbai, NCR, Pune, and Bengaluru—the company is looking at "interesting" and "some substantial" opportunities for outright purchases of land parcels as well as collaborative ventures with land owners. "As a result, I feel fairly optimistic. In the upcoming quarters, we will make a tonne of significant announcements, the executive predicted.

In order to maintain growth in sales bookings, Pirojsha stated that the company has not provided any guidance on new business development but would like to add projects with a gross development value (GDV) of Rs 15,000 crore.

He had stated in February that he intended to spend Rs 7,500 crore on the creation of new projects over the following 12 to 18 months. According to Pirojsha, the business has begun using the extra income and spent Rs 500 crore on new projects in the first quarter. The majority of the cash, which we will use during the upcoming quarters, are still available.

Since its inception in 1990, the GPL has successfully supplied over 22 million square feet of real estate. Currently, 86 projects across India total about 192 million square feet of developable space.

The Mumbai Metropolitan Region (MMR), Delhi-NCR, Bengaluru, and Pune are the company's four primary markets. In addition to these cities, the organisation is present in Chandigarh, Nagpur, Chandigarh, Kolkata, and Kochi.