Realty major DLF Ltd will launch two luxury housing projects worth Rs 15,000 crore in Gurugram during the second half of this financial year to expand its business amid strong demand for premium homes, its Managing Director Ashok Kumar Tyagi said.
Tyagi said the company has set a target to reach sales bookings of Rs 13,000 crore in this fiscal year and intends to exceed the amount after selling 8,000 crore rupees’ worth of flats in three days in February at its new Gurugram project, “The Arbour.”
During the 2022-23 financial year, DLF posted sales bookings of Rs 15,058 crore, a more than two-fold increase from Rs 7,273 crore in the previous year.
In an interview with PTI, Tyagi talked about the overall housing market and noted that the demand for ultra-luxury, luxury and mid-income residential properties is very strong.
However, he mentioned that there is some stress in the affordable housing segment because of the rise in interest rates on home loans and an increase in housing prices.
On the company’s plan to tap this high demand in premium and luxury segments, he said the company has created a launch pipeline of Rs 20,000 crore for this fiscal.
“Launches this year will be predominantly driven by two launches in Gurugram – one in Southern Peripheral Road (SPR) and the other in Golf Course road,” Tyagi said.
The estimated sales bookings value of these two upcoming projects in Gurugram is about Rs 15,000 crore, he said but did not share any further details.
DLF already owns land parcels for these two projects in Gurugram.
In addition, one residential tower will be built in this project’s Moti Nagar neighborhood, one in Chandigarh’s Tricity, and one in Mumbai, Tyagi said.
“Launches in Chennai and Goa might spill to next fiscal year,” Tyagi said.
Tyagi pointed out that the company did not launch many projects during the April-June quarter of this fiscal as it had expected ‘The Arbour’ project to be fully sold out by September this year but all units got sold out within days of launch in Q4 of FY’23.
As a result, DLF’s sales bookings in the first quarter of this fiscal remained flat at Rs 2,040 crore.
Asked about plans to buy new land parcels, Tyagi said the company would focus on Delhi-NCR, Tricity, Chennai, Goa and Mumbai markets.
He stated that though they are still in the very early stages, the company is looking into certain land acquisitions in Gurugram.
On its entry into the Noida market, he said the company is not able to find land parcels, which have clear titles and without any litigations.
In a partnership with NCR-based builder Trident Group, DLF said last month that it would invest Rs 400 crore as equity in the creation of a real estate project in Mumbai with an estimated saleable area of 35 lakh sq ft. By the end of this fiscal year, the business intends to begin construction on the first phase of the Mumbai project, which would include 9 lakh square feet of residential space.
Chairman Emeritus K P Singh, a billionaire, was questioned about the sale of all of his equity shares in DLF, Tyagi responded that Singh intended to use the money to establish a charity foundation as a corpus.
Earlier this month, Singh sold his entire remaining stake in DLF for around Rs 731 crore.
In the first quarter of this fiscal year, DLF recently recorded a 12% increase in total net profit at Rs 527 crore. In the prior fiscal year, the company’s net profit totalled Rs 469.57 crore
From April through June of the 2023–24 fiscal year, total income increased slightly to Rs. 1,521.71 crore from Rs. 1,516.28 crore. DLF’s net debt decreased from Rs 721 crore at the conclusion of the 2022–23 fiscal year to Rs 57 crore as of June 30, 2023.
During the period under review, the company’s gross debt also fell to Rs 3,068 crore from Rs 3,840 crore.
DLF is India’s largest realty firm in terms of market capitalisation. It has developed more than 158 real estate projects and an area of over 340 million square feet.
The Group has 215 million square feet of development potential across residential and commercial segments. It has an annuity portfolio of over 42 million square feet.
On Monday the company shares jumps 1.1%, at 13.08 p.m. shares were trading at Rs. 480.50.
A corporation that develops real estate is called DLF Ltd (DLF). It develops properties for commercial, retail, hospitality, and residential use. DLF provides various-sized duplexes, condominiums, row homes, and apartments in addition to business offices, information technology (IT) parks, shopping areas, and entertainment venues.
