Adi Godrej, Chairman of the Godrej group has said that the group expects a strong demand for residential projects in the coming time and is not planning a reduction in prices.

While speaking on the sidelines of a World Economic Forum event in Mumbai, he said that the working capital for the residential projects by the company is lower and there is good demand and thus the company is not planning any cut in prices. He indicated that prices may be increased instead.

Godrej Properties, unit of the Godrej group, is developing properties across 10 cities in India. The unit had raised $100 million via an initial public offering (IPO) in January 2010. Property sector firms have been seeing a lower demand due to the increasing interest rates for financing in the country.

"Overall there is a slowdown as mortgage rates are high. We have added a lot of projects and our growth in the first half was 80 percent, but that does not signify the industry," he added.

Shares of the Godrej Properties have increased about 10 percent so far thus year. The unit is valued at $943 million in the market. Godrej Properties shares were trading 0.5 percent higher at 678 rupees on the Bombay Stock Exchange this morning.