From DLF to Lodha and Godrej, builders are testing new cities
Top developers are entering new markets for residential projects, as rising urbanization and an expanding middle class fuel a housing boom. Developers are exploring opportunities particularly in cities such as Hyderabad, Pune, Bengaluru and Gurugram that have seen high sales. Mumbai-based Godrej Properties Ltd this week acquired 12.5 acres in Hyderabad’s Rajendra Nagar locality to develop a premium residential project, marking its entry into the city.
Shriram Properties Ltd, which has so far focused on South India, is entering Pune with a mid-market housing project in suburban Undri. It has signed a development management agreement with the landowner for the project. “The residential market is buoyant, and Pune is the second-best property market today in terms of sales.
It is also a city which is similar to Bengaluru, a market we know well, in terms of demand and customer profile. The sector has seen a lot of consolidation, and larger developers have a good opportunity to expand and grow in newer cities," said M. Murali, chairman and managing director, Shriram Properties.
Operating in Hyderabad would give Godrej Properties—one of the few developers operating in multiple cities—an opportunity to be present across key property markets in the country. “Hyderabad is one of the fastest growing residential markets, where demand is high but the quality of supply is lacking," Gaurav Pandey, managing director and chief executive officer of Godrej Properties, said in a recent interview with Mint. In the past, some developers had entered new markets but with little success, prompting them to focus back on their core markets.
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