Headroom for dwelling costs to rise within the close to time period, says Godrej Properties CEO

There may be headroom for dwelling costs to rise within the close to time period, however forecasting for a long run can be troublesome, mentioned Gaurav Pandey, Chief Government Officer and Managing Director, Godrej Properties.

“There’s a clear alternative out there, there’s a short-term visibility, there may be headroom for us to extend costs in particular micro markets and we’re doing that as and after we really feel the chance is true,” he mentioned, in relation to the trade in addition to his firm.

Pandey spoke to the media individually at an occasion the place Godrej Properties launched a Nationwide Expertise Discussion board for Girls, to encourage and improve ladies’s participation within the workforce.

Demand for properties

He mentioned that Godrej Properties had been capable of cost a premium for its tasks throughout zones and micro markets. It has taken worth hikes of 2-5 per cent each quarter in most of its tasks. He identified {that a} good portion of the market progress has been as a result of pricing. Value hikes have occurred not solely in new tasks but in addition in new phases of present tasks. “We’ve very sturdy worth enlargement.”

Regardless of worth hikes and the excessive prevailing charges of inflation within the economic system, demand for properties have held regular. Pandey mentioned that the pattern over the past three years has proven that this was one of many few cycles the place there was a detrimental correlation between rates of interest and residential demand.

He added that the premium phase, the place the corporate operated, was not very delicate to rates of interest.

Knight Frank India’s latest quarterly replace on the residential market confirmed that worth ranges have grown in tandem with demand throughout all markets. In contrast with year-ago dwelling costs have risen 2-13 per cent throughout cities within the first quarter of 2024, whereas they’ve grown 1-4 per cent sequentially in some markets and held regular in others. With demand outstripping new launches, costs are anticipated to stay buoyant.

Godrej Properties ended FY24 with file gross sales of ₹22,500 crore and offered over 14,300 properties with a complete space of 20 million sq ft.