In 12 months, real estate sector will be in a better position: Pirojsha Godrej

Godrej Properties, the property development arm of Godrej Group, on Thursday launched its 35-acre flagship project in Vikhroli in Mumbai, which houses its headquarters and other group companies. Managing director Pirojsha Godrej discusses the company’s plans and overall real estate scenario with Raghavendra Kamath. Edited excerpts:

CRISIL recently said the top 25 property developers are facing challenges in terms of refinancing their debt due to decline in customer advances. What is your take?

There are serious challenges, no doubt. Cash flows are weak because of customer demand environment. Some developers have much more difficulties than others because of higher debt load and decline in customer advances. But we can not put everybody in one basket. Some developers are seriously struggling but some are doing very, very well.

There have been conflicting reports about the pick-up in the Mumbai residential market. What is your take on that?

The demand environment is subdued everywhere. I don’t think there is no demand. Many developers are seeing very good sales. For example, we have done more sales in the first half of this financial year than any other full financial year. For the right developer and right project, demand continues to be good. I am not only talking about us. There have been successful launches by other developer as well. For more full fledged recovery, confidence needs to improve more. Things are on the upswing and for full-fledged recovery, it will take six to 12 months.

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