You have lined up a dozen projects in Q4. Isn’t it challenging to launch so many projects in the current environment?
It is challenging, but the team is doing very well and these launches are in different cities, micro-markets, and locations. So, we are confident that we will be able to do it. Even two to three years ago, we had set a target of doing at least one launch a quarter in each of our geographies, and, over the years, we increased that to two.
In fact, even in Q4 last year, we had three launches in some geographies like Pune. So doing 12 launches in a quarter is doable. In any case, it is unlikely that all 12 will happen this quarter, given the regulatory challenges, but the teams are prepared to handle it.
Do you think there is enough demand?
Yes, demand is looking very good and in Q3 we launched three projects. Sales in the first couple of months were 95 per cent in one project, 85 per cent in another, and around 70 per cent in the third. So, there is offtake.
I think the market is looking forward to new launches from established developers.
You are looking to raise funds through a QIP. What is the objective?
The funds will be used to build our portfolio, pay joint venture partners upfront and so on.
But, don’t you still you have about Rs 1,000 crore on the books?
Yes, but I think what we are seeing a very interesting opportunity and we are not sure how long it will last, because sales have been very positive for the bigger organised developers for the last three to four months. The market has already started to turn, but at the same time, I think most developers are facing liquidity and capital issues, so there are good land deals available at attractive valuations. I think the point is to strengthen our war chest. If the market continues to do well, even land prices will start reflecting that, so the goal would be to deploy more capital in this market.
You have been looking to buy stressed assets for a long time. Have you been able to tap this opportunity in the last two to three quarters?
Yes. For example, last quarter we bought two different land parcels in Bengaluru with a combined development potential of about four million square feet.
The first half of the financial year was obviously a bit slow, but things are back to normal now. We have added close to 50 million square feet over the last two-and-a-half years.
Do you think land prices have reduced from Q1 and Q2?
No, I don’t think they have. But, even if they hold at the same level, it’s quite attractive. Customer sales have started to rise across all markets.
Some critics say since you are aggressive on buying land, there is a chance of some disputed land getting into your portfolio. What is your take on that?
It is our job to ensure our practices are very diligent. I don’t think we are saying that because we want to add land very fast, we are going to lower our standards or not be very careful. We have been in the industry for over 25 years, and we know how to do this. We continue to focus on risks and be as diligent as possible.
Do you think sales will sustain once the stamp duty cuts in Maharashtra and Karnataka end?
Yes, I think so. I think these are very helpful and wise moves by the governments to draw those sitting on the fence into action. However, frankly, someone buying a home is not going to decide against it because the stamp duty is two per cent higher.
[The cuts] may get some people to act sooner, but think there isn’t any concern that demand will sustain. I think it is important that we remember that last year was the eighth year of the down cycle and affordability of real estate in India is probably the best it has ever been — interest rates have never been this low in my lifetime.
 "Pirojsha Godrej, chairman of Godrej Properties,")