Source: The Economic Times
Panipat, Haryana – Godrej Properties has purchased a 40-acre land parcel in Panipat for approximately ₹600 crore. The land is licensed and has a potential developable area of 3 million square feet. It will be the company’s eleventh new project announcement for the financial year 2024 – 25.
The transaction was done at a time when many real estate developers showed a proclivity for Tier-II cities such as Panipat. Tier-II cities have been receiving notoriety for several factors including lower land prices, favourable local infrastructure and increasing demand for homes.
Sources familiar with the transaction said that the deal was finalized recently. A CBRE group, which was the property consultant for the deal, did not comment.
The purchase of this land is part of Godrej Properties’ strategy for expansion in Tier-II cities. More and more Tier-II cities are getting premium and luxury housing projects. Developers, investors, and companies are starting to see Tier-II cities as the new growth promise.
Godrej Properties has been active in other parts of Haryana too. In October 2024, it won a bid for a luxury housing project on Golf Course Road in Gurugram. The revenue expected from that project is ₹5,500 crore. Moreover, the company bought two land parcels in the same area through Haryana’s government auction earlier in the time span of FY24.
Stock Price Movement
Despite its drive to expand, the stock price has been volatile:
- It is down over the past year by 26.4%.
- It is down over the past six months by 16.6%.
That said, it has recovered as of late, gaining 11% over the past three months and 5.5% in the last month.
From a technical perspective, the stock is currently trading below its 5-day, 10-day, 20-day, and 200-day moving averages. However, it is still above the 30-day, 50-day, 100-day, and 150-day moving averages.
The Relative Strength Indicator (RSI) reads 51.9 indicating neutral momentum. The Moving Average Convergence Divergence (MACD) reads 43.0 shows value above the center line but below the signal line – perhaps indicating a possible change in short-term momentum.
Conclusion
With this ₹600 crore land deal in Panipat, Godrej Properties has furthered its revenue-generating opportunity in Haryana. The purchase represents the company’s credence to focus on smaller cities, as the company is anticipating strong growth in the housing market in these smaller cities.
