Realty firm Godrej Properties Ltd on Monday said it has entered into an agreement to develop a 33-acre land parcel in Bengaluru and expects around Rs 2,000 crore revenue from this upcoming residential project. The land is located in the residential micro-market of Bannerghatta Road in South Bengaluru, Godrej Properties said in a regulatory filing.
“The new project near Bannerghatta Road will have a developable potential of approximately 3.4 million square feet of saleable area with an estimated revenue of approximately Rs 2,000 crore,” it added. The agreement is for an outright purchase, with around 5 percent area share to the landowners. Mohit Malhotra, MD & CEO, Godrej Properties, said, Bannerghatta Road is an important micro-market within Bengaluru and we are happy to add this land parcel to our portfolio”.
This will further expand the company’s presence in South Bengaluru and fits with the strategy of deepening its presence in key micro markets across India’s leading cities, he added. Godrej Properties highlighted that Bannerghatta Road is one of the established residential locations in South Bengaluru and has excellent connectivity to the Bannerghatta Main Road and the IT/ITES belt in Electronic City. Earlier this month, Godrej Properties bought about 50 acre of land parcel at Sonipat in Haryana for plotted development.
In an interview with PTI last month, Godrej Executive Chairman Pirojsha Godrej had mentioned about the company’s plans to invest around Rs 7,500 crore over the next 12-18 months on the acquisition and development of new real estate projects. He was upbeat on the growth potential in the housing and commercial real estate segments, especially in four major markets: Mumbai Metropolitan Region (MMR), Delhi-NCR, Bengaluru and Pune — where the company has a huge presence.
“We will invest USD 1 billion (around Rs 7,500 crore) over the next 12-18 months on the development of new projects,” Pirojsha had said. Godrej Properties, the largest listed realty firm in the last fiscal in terms of sales bookings, acquires new projects through outright purchase of land parcels and also via joint ventures with landowners. The Mumbai-headquartered company is likely to achieve all-time high sale bookings in the 2021-22 financial year, beating the last year’s record of Rs 6,725 crore.
Housing sales revived in 2021 after a sharp fall in the previous year because of the pandemic. Sales of almost all big listed real estate developers have risen in the first nine months of this fiscal year. According to real estate consultant PropTiger.com, housing sales across eight major cities increased 13 per cent in 2021 to 2,05,936 units from 1,82,639 units in the previous year. Housing brokerage firm Anarock reported that sales across the top seven cities rose 71 per cent year-on-year in 2021 to 2,36,530 units.