by THO
Real estate major DLF plans to launch new real estate projects spanning approximately 11.6 mn sq ft with a sales potential of almost ₹36,000 crore this fiscal. The key launches planned for the year are expected to be in Gurugram, Goa and Mumbai, Aakash Ohri, Joint Managing Director and Chief Business Officer, DLF Home Developers Ltd, told Hindustan Times Digital on May 15.
DLF is planning to launch super luxury projects in Gurugram in DLF5 (Lux5) in Q3 and in Goa in Q2, a premium project in Mumbai in Q4 and a luxury project DLF Privana (Privana phase 3) in Q4, said the company’s top official.
“DLF’s residential projects pipeline for the year has a developable potential of ₹36,000 crore. We have indicated a sales guideline hovering around ₹17,000 crore. But we will not stop at ₹17,000 crore should the sales velocity be more,” said Ohri.
Mumbai project
DLF is planning to launch its first project in Mumbai in the fourth quarter of 2024.
“We are planning to launch our Mumbai project by the fourth quarter of the year. We are hoping to have all approvals in place by then. The plan is to have the site completely cleared and barricading done by that time,” he said.
The company is developing the Slum Rehabilitation Authority project in a joint venture with the Trident Group. The listed company had announced its re-entry into the Mumbai real estate market in July 2023.
DLF plans to take the Camellias’ super luxury story to the next level in Gurugram
Having built on the Camellias story in Gurugram, “We are now ready to forge ahead with Lux5 in Q3, 2024 and the price points are expected to be reasonably higher, much higher than Magnolias which is currently trading around ₹40 crore. The Lux 5 project is also expected to be more luxurious than Camellias. It will be a ‘Only by Invitation’ product,” said Ohri.
The project will have about 420 apartments.
Also Read: Is capital appreciation the key motivation for rich real estate investors to buy luxury properties?
On the design front, Ohri said that having given Gurugram two golf courses, the USP of Lux5 is expected to be an artificial lake. “The super luxury apartments will overlook a lake park. The design of the project will be similar to super luxury projects in the US and Europe with cafes and walkways, being an integral part of the project,” he said.
Also Read: DLF flat in Gurugram sold for ₹95 crore. Here are the details
Privana Phase 3 to be the new Crest
Ohri said that Privana 3, to be launched around the fourth quarter this year, is expected to be “better than Crest.”
Privana is spread across 116 acres and is nestled between infrastructure hubs such as the Jaipur Expressway and the Dwarka Expressway. It is also located near Gurugram’s green lungs better known as the Leopard Safari.
“Privana 3 is likely to be launched at prices that are at least 10% to 15% more than Privana West. It will be the next DLF 6,” he said.
DLF said on May 9 that it had sold all 795 apartments for ₹5,590 crore within three days of the launch of its project Privana (second phase) in Gurugram on the back of robust housing demand. In a regulatory filing, the company said that its latest luxury residential project DLF Privana West had achieved “a remarkable sellout valued at approximately ₹5,590 crore, within 3 days.”
Percentage of end-users and NRIs on the rise; DLF to target NRI sales in Australia and Canada
DLF said that almost 70% of buyers comprise end-users. Buyer profiles include corporate honchos, lawyers, doctors and non-resident Indians from across the world.
“Our buyers comprise corporate honchos, doctors, top lawyers and entrepreneurs. A large percentage pays the initial ₹50 lakh tranche from internal accruals that may comprise company bonuses, savings etc. They eventually avail of a home loan which they prepay before the loan cycle gets over,” explains Ohri.
Also Read: DLF’s Privana South attracts NRIs from across the world, including Africa for the first time
As for non-resident Indian buyers, they comprise around 20% to 25% of the total pie of the buyers.
“DLF’s overall NRI annual sales comprise about 22%-24%. It was around 27% for Privana West. Also, NRIs are known to hold properties for a longer period. NRIs investing in DLF properties are usually people who hope to return in the next four to five years or who wish to have a property back home for their annual visits or for their children,” said Ohri.
DLF, which had NRIs investing in its Privana offerings from US, Africa (Tanzania and Nigeria to start with), United Kingdom, South East Asia and the Middle East, is now exploring countries such as Australia and Canada.
Increase in buyers from Tier 2 cities for super luxury projects
Ohri said that he expects the number of buyers from Tier 2 cities to go up this fiscal. “The number of buyers for super luxury properties from Kanpur, Ludhiana, Bengaluru, Bhubaneswar and Kolkata is on the rise. If they comprised just about 5% when we launched Camellias, the number may double when we launch Lux5 in Gurugram this fiscal,” he said.
Buyers in early 30s investing in luxury projects
The real estate buyer is getting younger by the day. “The average age of the real estate buyer for the Privana West project is 30 years,” said Ohri, adding the trend is expected to continue.
More than half of profit margins from luxury projects in Gurugram
More than half of DLF’s profit margins are from luxury projects in Gurugram. “The profit margins from the Privana launch were close to 35% to 40%. Profits margins from Lux5 are expected to be higher,” Ohri told HT Digital.
As for the Mumbai launch, “we will pull out all stops. The margins could be restricted initially but I am confident that Mumbai will prove to be a healthy portfolio for us,” said Ohri.
Plans for Noida
The company plans to enter Noida “when offers come along for land parcels that have a clear title.” “It took us time to enter Mumbai and I don’t see a problem in Noida going forward. Having said that, right now we are concentrating on the Gurugram real estate market but I don’t think we can stay away from Noida for long,” he said.
Also Read: Noida getting out of reach for middle class? Average cost of an apartment rises to ₹1.68 crore
