by THO
Real estate major DLF plans to launch new properties spanning approximately 32 mn sq ft with a sales potential of almost ₹80,000 crores over the next 3-4 years in line with its ‘plans of scaling up the business’ with the key launches for the next 12 to 15 months expected to be in Gurugram, Chennai, Goa and Mumbai.
Most of the projects to be launched for sale over the next 3-4 years would be residential and that too in luxury and ultra luxury segments.
“The sustained demand momentum across all segments continues to be encouraging. Consequently, we have identified a fresh pipeline of new products of approximately 32 million square feet with a sales potential of approximately ₹79,000 crores, which is more than double of what we have delivered during the last 3 to 4 years and is in line with our plans of scaling up the business. We expect to launch these products over the next 3 to 4 years,” Vivek Anand, DLF’s Group Chief Financial Officer (CFO) told analysts recently.
“The key launch that we are working on for the next 12 to 15 months are products in Gurugram, Chennai, Goa and the first phase of our Mumbai project,” he said.
The company sold properties worth ₹15,000 crore during 2022-23 and is set to surpass this number in the current fiscal going by sale bookings clocked in the first three quarters.
“The new sales booking for the 9-month period stood at ₹13,316 crores and hence, will exceed our full year sales guidance. We would like to highlight that with this performance, we have broadly achieved our guidance on new product launches that we had given 3 years back along with an upside in sales potential due to value enhancement across the products. The sustained demand momentum across all segments continues to be encouraging,” he said.
Elaborating on the projects expected to be launched next fiscal, Ashok Tyagi, managing director, DLF Limited, told analysts that the key projects that the company is ready to launch would be the next phase and subsequent phases of the recently launched Privana.
“There would be a luxury project coming up on the Golf Course Road in DLF 5 for sure. We have a launch lined up in Chennai of a luxury project and 1 lined up in Goa. We will have the first phase of our Mumbai launch next year, and we’ll have a small launch in Panchkula,” he said.
Aakash Ohri, chief business officer and joint managing director, DLF Home Developers Limited, told analysts that the super luxury project on the Golf Course Road will be about 450-odd apartments that will be some time in after the first quarter. Privana 2 is expected to have another 800-odd apartment, Privana West of 1,100. Chennai is expected to have apartments of about 2,400 to 2,800 square feet. And then Mumbai. Panchkula is expected to be a small development with ₹500-odd crores floors and some commercial.
“So that’s what we have right now. And in terms of value, we had earlier mentioned also, there is tremendous potential, both from the point of view of luxury and super luxury across the board, across geographies,” he told analysts.
Also Read: DLF flat in Gurugram sold for ₹95 crore. Here are the details
As for the order of the launches, Ohri said that the company will be starting with Gurgaon and “after these 2 launches here, we will move to Mumbai and Chennai,” he added.
End users to investors’ ratio 80:20; Robust demand from NRIs
Ohri told analysts that residential real estate has become a priority and that the young generation is coming forward to buy properties rather than live on rent.
“It (residential real estate) is no more — it is not something that people earlier used to procrastinate. The young generation used to — would prefer to live on rentals than actually buy. I am seeing a major shift from 30-year onwards of this segment, which is now coming into the actual purchase of residential properties. Also, post-COVID, people want better homes, better connectivity, larger homes, more spacious homes and closer to nature and so on and so forth,” said Ohri.
He mentioned that demand was also emanating from the non-resident Indians.
“…I wouldn’t call it an influx, but I’m seeing a very favourable demand from the NRIs… So there is this nostalgia or a certain piece of the Indian pie that they now want to take,” he said.
He mentioned that the demand is ‘robust’ and that the people buying homes are not speculators or investors. The ratio currently is 80% actual owners and 20% investors.
Also Read: Delhi-NCR’s real estate market: Here’s why rich Indians are lapping up luxury properties
“These are people who are wanting to move into better and bigger homes, and they want this to happen. So if you see it today, I can safely say I have about 80-20 ratio. 80% is retail and people who are actual owners and 20% may be these investors or otherwise. That’s what the market is today,” he added.
DLF has around 215 million square feet of development potential across residential and commercial segments. The group has an annuity portfolio of over 42 million square feet.
