Godrej Properties Ltd., one of India’s leading real estate developers, is charting a course for aggressive expansion into Tier II cities in southern India.
As per reported by the Money Control, the company aims to deliver 15 million square feet of real estate in the fiscal year 2025, targeting cities like Mysuru, Mangaluru, and Hosur as part of its growth strategy.
Pramod Bisht, CEO (South) of Godrej Properties, revealed that the company is particularly focused on plotted developments in these Tier II cities. This approach allows the company to test new markets and evaluate the demand for group housing projects. While Godrej Properties already has a strong presence in Bengaluru and Chennai, the company sees significant opportunities in the less saturated Tier II markets of southern India.
According to the company’s investors’ presentation, Godrej Properties plans to launch a total of 21.9 million square feet of new projects in FY25, with an expected launch value of ₹30,000 crore. The company has provided a sales booking guidance of ₹27,000 crore for the fiscal year, reflecting its confidence in the market’s demand for residential and commercial properties.
Bisht highlighted that southern India plays a crucial role in Godrej Properties’ overall portfolio due to its stable market, which is less speculative compared to other regions in India. The strong end-user demand in this region further bolsters the company’s expansion plans.
In early 2024, Godrej Properties made a strategic entry into Hyderabad by acquiring two land parcels: a 12.5-acre site in Rajendra Nagar with a revenue potential of ₹3,500 crore, and a three-acre plot in Kokapet with an estimated booking value of ₹1,300 crore. These acquisitions mark the beginning of the company’s planned expansion in Hyderabad, with further acquisitions expected in the near future.
Historically, the southern market has contributed 20-25% of Godrej Properties’ sales. The company anticipates similar contributions in FY25, particularly in the mid-luxury segment, where housing units are priced between ₹1.5 crore and ₹4 crore.
North Bengaluru is emerging as a key area for Godrej Properties’ future developments. The company is already making significant strides in the region, with ongoing projects like Godrej Woodscape at Whitefield-Budigere Cross. In July, the company achieved sales of over 2,000 homes, generating ₹3,150 crore from this project alone.
Bisht also mentioned that Godrej Properties is planning a premium luxury project in Yeshwanthpur, further expanding its footprint in Bengaluru. Another major project in the pipeline is a 62-acre mini township near Kempegowda International Airport in north Bengaluru. This mixed-use development will be undertaken through a joint venture and will include residential, commercial, and retail spaces, catering to the diverse needs of the area’s growing population.
Bisht pointed out that north Bengaluru has become a growth engine for plotted developments and villas. With increasing economic activity in the area, the demand for group housing is also on the rise, making it a strategic location for Godrej Properties’ expansion.
Godrej Properties’ strategic expansion into Tier II cities in southern India is set to redefine the real estate landscape in these emerging markets. With a strong pipeline of projects in Bengaluru, Hyderabad, and other key locations, the company is well-positioned to meet the growing demand for mid-luxury and premium housing. As it continues to deliver high-quality real estate developments, Godrej Properties is poised to play a pivotal role in shaping the future of southern India’s real estate sector.