Top listed developers such as Godrej Properties and Lodha Developers stepped up business development sharply in FY26, even as housing sales showed signs of slowing.
In real estate, “business development” spans land acquisitions, joint ventures, joint development agreements with landowners, revenue-sharing arrangements and redevelopment projects. On all these fronts, large listed players expanded aggressively.
Godrej Properties more than doubled its FY26 business development to about ₹42,100 crore, well above its initial target of ₹20,000 crore. For FY27, it has set a similar target. During the year, the company added 18 projects with a saleable area of 33.32 million sq ft—its highest-ever annual addition.
The company has also shifted strategy. While it earlier relied on joint ventures, it now prefers outright ownership of projects, with only a limited number structured as revenue- or area-sharing deals. In FY26, it acquired 443.5 acres of land—roughly a third of the total bought by listed developers, according to Anarock Property Consultants.
Decoding the firm’s aggressive expansion
This aggressive expansion is underpinned by confidence in demand and execution visibility. A recent note by HSBC points out that Godrej’s strong FY27 pre-sales guidance—about 14% growth—comes despite an uncertain global environment. The brokerage attributes this to a 14% increase in planned launches worth about ₹48,000 crore and a demand environment that has so far seen no material disruption. It also highlights broad-based pre-sales across cities, with Mumbai, Bengaluru and NCR accounting for the bulk of demand, and notes that nearly half of recent launches were sold within a short period.
At the same time, consultants caution that translating business development into actual launches will take time. “A lot of processes need to happen before launch. Typically, about 80% of business development gets converted into launches over two to two-and-a-half years, and the full cycle can take three to four years,” said Prashant Thakur, executive director and head of research at Anarock Property Consultants.
Pirojsha Godrej, executive chairperson of the company, denied that the surge in land acquisition amounts to land banking—a strategy developers once used to accumulate land for price appreciation. Instead, he emphasised execution.
“It takes time to launch projects. Whichever projects get approvals, we will launch them,” he said.
He added, “Our business development additions with a future booking value of over ₹42,000 crore in FY26 will ensure that we continue to have a strong launch pipeline in the year ahead. The record operating cash flow of ₹7,830 crore we generated in FY26 will enable us to continue to invest for growth while ensuring a strong balance sheet.”
The company plans to launch projects worth ₹48,000 crore in FY27 across top cities such as NCR, Pune, Bengaluru and Kolkata, along with plotted developments in smaller markets. It is targeting residential bookings of over ₹39,000 crore, implying growth of more than 14%.
“With a robust launch pipeline and strong balance sheet, we are confident of a strong FY27, but will remain watchful about potential global security-led disruptions,” Godrej said.
Lodha Developers, the second-largest listed real estate firm by market capitalisation, reported even larger gains in business development. It achieved a gross development value (GDV) of over ₹60,000 crore in FY26—about 2.4 times its guidance.
A Motilal Oswal report noted that this is equivalent to 75% of the company’s total business development during FY22–FY25 combined. It expects Lodha’s bookings to grow at a CAGR of 16% between FY26 and FY28, supported by a strong pipeline and inventory base.
Abhishek Lodha, managing director, said new launches contributed about one-third of total sales. “We have launches in Pune, Bengaluru and Mumbai. We have been conservative in not including NCR in our current guidance,” he said.
The company’s bookings rose 16% in FY26 to ₹20,530 crore, although they fell marginally short of initial guidance due to weaker NRI demand in the luxury segment. For FY27, Lodha has guided for 17% growth.
Despite the aggressive expansion, developers and consultants alike flag execution risks amid global uncertainty. Demand remains intact, but not without near-term headwinds.
“There is demand in the market, but there are temporary challenges—global factors, layoffs, and sector-specific issues. Also, not all development is residential; there is growing activity in warehousing and commercial segments,” Thakur said. He added that most land buying—around 70–75%—is being led by large, branded developers, with activity concentrated in major cities such as NCR, Mumbai and Bengaluru, though tier-II and peripheral markets are also seeing increased traction.
Consultants say the key question now is the pace of conversion from land to launches. “While developers’ appetite for land remains strong, the pace of launches may become more calibrated given macroeconomic uncertainties,” said Anuj Puri, chairman of Anarock.
Developers, too, are signalling flexibility. “If markets slow down, we will respond accordingly,” Godrej said.