In an interview with CNBC-TV18, Pirojsha Godrej, Executive Chairman of Godrej Properties spoke about the latest happenings in his company and sector. He was speaking from the sidelines of the Kotak Institutional Equities – Chasing Growth Conference.
The NCR market has been a key part of our company’s growth strategy. We want to focus on our business development activities in the top-four markets in the country which are Mumbai, NCR, Bangalore, and Pune and these contribute to the vast majority of the rally of real estate sold, he said.
NCR has been a market that we have been very happy with the response we have received, he added.
We are in the process of launching a new project in Sohna, NCR and that project has received a very strong response. So the NCR market will continue to be one that we see a lot of new investment and lot of new project opportunities in, said Godrej.
We are quite positive with the momentum we are seeing both in business development and sales so that should lead to a pretty healthy pipeline for the next year, he further mentioned. The next financial year should be our best ever year for new launches, he said. Prices have been flattish for most parts of the country. On average many places in NCR are seeing a 20-30 percent price reduction, Godrej said.
According to him, the downturn of the real estate sector has continued for a 4th-5th year now. He expects that the situation will turnaround quite significantly over the next year or two, he added.
See prices start picking up over the next year or two, he said.
Speaking about real estate regulatory authority (RERA), he said that the process of consolidation in the industry was already underway much before RERA but it is fair to say that RERA has added a lot of impetus to that process.
We are seeing a greater number of land opportunities both for outright purchase and also for the partnership structure that we typically prefer and I certainly think that that will continue to gather space over the next few years, he further mentioned.