Godrej Properties expects to launch a luxury housing project at Ashok Vihar in the national capital in the March quarter and is eyeing Rs 8,000 crore of sales revenue from this property. It had in February 2020 acquired a nearly 27-acre land in the national capital for Rs 1,359 crore to develop a luxury housing project.
The land parcel belonged to Rail Land Development Authority (RLDA). In an interview with PTI, Godrej Properties Executive Chairman Pirojsha Godrej said the company is still awaiting the final approval to start the work and sales of its upcoming housing project at Ashok Vihar.
"There has been good progress on the approvals. We are still hoping for a Q4 launch (January-March)," he said.
The total development potential of the Ashok Vihar project would be around 4 million square feet and the company is eyeing sales of Rs 8,000 crore, said Pirojsha Godrej.
"I am very confident about this project. The quality of the land is so good because of those three parks in the (Ashok Vihar) area. We also have a good-sized plot to do a nice layout. Sales are the least of my concerns in this project. We just need to get the project going... I am sure we will be able to do well from a sales perspective," he said.
In May, Godrej Properties launched a small luxury project ‘Godrej Connaught One’ near Connaught Place in central Delhi. Before that, it had launched a project at Okhla in South Delhi.
In Delhi-NCR, Godrej Properties has a strong presence in Gurugram, Noida and Greater Noida markets. It has expanded to Delhi, Faridabad and Sonipat as well.
Godrej Properties, a part of business conglomerate Godrej Group, focuses on four key markets - Mumbai Metropolitan Region (MMR), Delhi-NCR, Bengaluru and Pune, although it has a presence in Chennai, Kolkata, Kochi, Ahmedabad, Chandigarh and Nagpur.
The Delhi-NCR market contributed around 40 percent to the company's total sales bookings of Rs 7,861 crore during the last fiscal year.
Godrej Properties has set a target of Rs 10,000 crore sales bookings for 2022-23 and the Delhi-NCR would be a big contributor.
It has already clocked a 60 percent growth in sales bookings during the first half of this fiscal year at Rs 4,929 crore as against Rs 3,072 crore in the year-ago period.
Pirojsha said the housing demand continues to be strong despite the hike in interest rates on home loans and the company expects robust sales bookings in the second half of this fiscal. Mortgage rates have gone up to around 8.5 percent from a decadal low of about 6.5 percent.
On the financial front, Godrej Properties has reported a 54 percent increase in consolidated net profit to Rs 54.96 crore for the quarter that ended September 2022 on higher income.
Its net profit stood at Rs 35.73 crore in the year-ago period.
Total income also rose to Rs 369.20 crore in the second quarter from Rs 334.22 crore a year ago. Established in 1990, Godrej Properties is one of the leading real estate developers in the country.
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