Indian housing market shows slowdown immunity, Godrej chairperson says

Godrej Properties

20/01/2025 15:54

By Divya Chowdhury and Praveen Paramasivam
       DAVOS, Switzerland, Jan 20 (Reuters) - India's economic
slowdown is not expected to show up in the country's housing
market, Godrej Industries Group Chairperson Nadir Godrej said in
an interview on Monday.
    Godrej, an Indian conglomerate which mainly targets the
"middle category" of India's housing sector, is keeping a close
watch on its debt given the cyclical nature of the business and
is hopeful of riding out a potential down cycle, he added.  
    India forecast its slowest economic growth in four years for
the year ending March, weeks after the country's central bank
lowered its growth outlook for the next financial year.
    Middle class Indians in the country's major cities are
already cutting spending due to persistent inflation.
    A slowdown is not evident in the housing sector, which
struggles during downturns, and nor is one imminent, Godrej told
the Reuters Global Markets Forum on the sidelines of the World
Economic Forum's annual meeting in Davos, Switzerland.
    A Reuters poll published last month forecast house prices in
India will rise steadily over the coming years, driven mainly by
demand from wealthy individuals. But rising inflation will make
owning a property unattainable for most.
    Godrej's group, which has annual revenue of more than $6
billion, includes Godrej Properties  GODR.NS  as well as animal
feed and vegetable oil manufacturer Godrej Agrovet  GODE.NS  and
Cinthol soapmaker Godrej Consumer Products  GOCP.NS .
    Godrej said India's rural economy is improving due to an
increase in consumption in villages.
    
(Join GMF, a chat room hosted on LSEG Messenger, for live
interviews: https://lseg.group/4ajdDTy)
 

 (Reporting by Divya Chowdhury in Davos and Praveen Paramasivam
in Chennai; Editing by Alexander Smith)
 ((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))