Godrej Properties: Slowed Market, but Opportunities in Gurugram and Noida

The real estate market has indeed slowed down a bit, but Godrej Properties is still optimistic about opportunities in Gurugram and Noida. Pirojsha Godrej, the executive chairman of Godrej Properties, addressed this during the company’s Q3FY26 earnings call, emphasizing that they continue to see viable opportunities in these regions.

And on Gurugon, Noida, opportunities we're seeing that make sense. So I would expect some business development there. But we're quite cognizant that the market has slowed down a little bit, so we may look to do a little bit more in other markets in the near term. But certainly, all 5 of these top markets remain priorities for us, Godrej said.

During the investor call, Godrej also highlighted the strength of the company’s national platform, which enables it to selectively focus on markets and deals that offer the best strategic value. Even if a particular market seems uncertain or requires a temporary pause, the company can adjust its focus without affecting growth in other regions.

And I think the advantage of our national model, which we've spoken about previously, is that it allows us to pick and choose which markets and which deals we think makes the most sense. So if we feel that any market is looking a bit concerning or we'd like to pause and see how things play out in that market, taking a little bit of a break there doesn't help -- doesn't stop us from growing elsewhere, Godrej said.

Godrej noted that the company has worked hard to establish itself as a leading developer across these geographies. We think we have done a lot of hard and good quality work in establishing ourselves as one of the leading developers in each of these markets, and over time, we think they each present an opportunity. Tactically, which market to focus on in a given quarter or a given half-year, we can continue to adjust. And I think that flexibility is one of the platform's strong advantages, Godrej said.

Godrej Properties' land acquisition strategy will continue to either replenish inventory or focus more aggressively on markets with significant upside potential. According to Gaurav Pandey, MD and CEO of Godrej Properties, the company had a Business Development (BD) strategy three years ago, when we were largely in an acquisitions spree across markets, because the market was in a different cycle.

But if you've been noticing in the last 18 months, we've moved to a very different strategy of buying land where we feel there is a strong demand coming up and selling fast in markets that we feel overheated up and at the right stage replenishing the inventory. So to that extent, I would say that it will continue to be a calibrated BD strategy, Pandey said during the investor call.

Pandey also mentioned that the company has added projects across geographies and currently holds about ₹135,000 crores in inventory. And within that, if I talk about inventory that is very recent, which is very fresh inventory, which is from the acquisitions of last year, that itself gives or takes about ₹65,000 crores. So largely, BD will continue to replenish inventory or double down in markets where we feel there is a huge upside available, Pandey said.

Godrej Properties remains committed to its strategic approach, ensuring that it remains agile and responsive to market conditions while maintaining a strong presence in key real estate markets.