In a bold move within the real estate sector, DLF, a prominent player, is gearing up to unleash a wave of new projects covering an expansive 11.6 million square feet. The potential sales from these ventures are estimated to soar to nearly ₹36,000 crore within this fiscal year alone. Aakash Ohri, the Joint Managing Director and Chief Business Officer of DLF Home Developers Ltd, disclosed these plans to Hindustan Times Digital on May 15.
The strategic rollout is slated to encompass key metropolitan areas including Gurugram, Goa, and Mumbai. Ohri outlined the roadmap, highlighting the launch of super luxury projects in Gurugram’s DLF5 (Lux5) during the third quarter, followed by a premium endeavor in Goa during the second quarter. Mumbai is also on DLF’s radar for a premium project launch in the fourth quarter, alongside the unveiling of the luxury project DLF Privana (Privana phase 3) in the same period.
Revealing the grand scale of DLF’s ambitions, Ohri emphasized that the residential project pipeline boasts a staggering developable potential of ₹36,000 crore. While setting a sales guideline around ₹17,000 crore, Ohri hinted at an openness to surpass this figure should market demand prove stronger than anticipated.
Glimpse into Mumbai’s Future
DLF’s foray into Mumbai’s real estate scene is poised to make waves. Anticipated to debut in the final quarter of 2024, the project represents a significant milestone for the company’s re-entry into this bustling market. Collaborating with the Trident Group, DLF is spearheading a Slum Rehabilitation Authority project, signaling its commitment to Mumbai’s urban rejuvenation. This venture marks DLF’s resurgence into Mumbai since its announcement in July 2023.
Elevating Luxury in Gurugram
Building upon the success of the Camellias project in Gurugram, DLF is poised to elevate luxury living with its upcoming Lux5 project. Expected to surpass its predecessors in opulence, Lux5 aims to redefine exclusivity with its ‘Only by Invitation’ status. Boasting breathtaking features such as an artificial lake, the project promises a lifestyle reminiscent of upscale developments in the US and Europe, complete with cafes and scenic walkways.
Privana Phase 3: Setting New Standards
Privana Phase 3 is slated to surpass its predecessors, aiming to establish itself as the epitome of luxury living. Nestled amidst lush greenery near Gurugram’s infrastructure hubs, this project is positioned to redefine upscale living standards. With prices expected to surpass previous benchmarks by 10% to 15%, Privana Phase 3 aspires to become the crown jewel of DLF’s portfolio.
Global Appeal: Targeting NRI Investors
DLF’s appeal extends beyond domestic borders, attracting interest from Non-Resident Indians (NRIs) worldwide. With approximately 22% to 24% of annual sales attributed to NRI investments, DLF’s allure resonates across continents. Expanding its reach, the company is eyeing markets in Australia and Canada, aiming to tap into the growing demand from overseas investors.
Emerging Trends: Youthful Buyers and Tier 2 Cities
Reflecting evolving market dynamics, DLF notes a shift towards younger buyers, with the average age hovering around 30 years for luxury projects. Additionally, the influx of buyers from Tier 2 cities signals a burgeoning demand for upscale living experiences beyond metropolitan hubs.
Profit Projections and Future Ventures
With a substantial portion of profits stemming from luxury projects in Gurugram, DLF remains optimistic about its ventures’ financial viability. While acknowledging potential margin constraints in Mumbai initially, Ohri expresses confidence in the city’s long-term prospects. Looking ahead, DLF’s expansion plans extend to Noida, awaiting opportune moments to venture into this burgeoning market.
As DLF embarks on its ambitious journey, the real estate landscape awaits a transformation, promising unparalleled luxury and innovation in urban living.