Godrej Properties, arguably the healthiest and fastest growing of the major Indian real estate companies, today said it has agree to purchase a 20 acre project in Kalyan near Mumbai for a residential project.
“This project will offer approximately 139,000 square meters (1.5 million square feet) of saleable area comprising primarily of residential apartments of varied configurations with a small amount of retail/commercial space,” the Mumbai-based company said.
The cost of the land parcel, or its exact location, was not disclosed.
This is yet another announcement by the company that has been going from strength to strength even during the slow-down that has gripped the real estate sector since 2016.
Unlike most of its competitors, Godrej Properties did not overstretch its balance sheet during the boom years (the period from early 2000s to about 2015), but followed a conservative strategy with a tight focus on keeping the funding costs under control.
It was also less dependent on the ‘cash market’ and played mostly in the formal side of the real estate market.
Because of these two factors, it was able to withstand the disruption in the market caused by Narendra Modi government’s crack-down on illicit funds and tax evasion. While many other real estate companies found the crack-down to have a major disruption on their customers and/or funding, it was largely business as usual for the Mumbai-based company.
Backed by a strong balance sheet, Godrej Properties was in fact able to get lucrative co-development deals and land deals as many real estate players started struggling to stay alive in the post-demonetization economy.
During this period, the Mumbai-based company has strengthened its position in newer markets such as NCR and Bangalore.
Pirojsha Godrej, executive chairman, said Godrej Properties continues to be interested in strengthening its presence in all markets, including its most well-established market of Mumbai region, and that the Kalyan acquisition fits well with its strategy.
Kalyan, on the central railway line, is a bustling residential satellite town of Mumbai, and could be one of the beneficiaries of the post-COVID 19 world in which employees work as much from their homes as from their offices.
The post-COVID 19 world is likely to see a preference for living outside the main city in a spacious apartment or house, with employees traveling to the city for occasional meetings and conferences.
Real estate companies have already reported that many of the buyers are looking for slightly larger flats so that one room can be converted into a work room or study.