DLF to invest Rs 10,000 crore by FY27 to build commercial properties, boost rental income

Time of India

27-05-2025

NEW DELHI: Realty major
DLF
will invest Rs 10,000 crore in the current and next fiscal year to build premium office spaces and shopping malls to enhance its rental income, a senior company official said. DLF Group has 45 million square feet of commercial assets, which include 41 million square feet of office and 4 million square feet of retail spaces, with an annual rental income of more than Rs 5,000 crore.
"India's Grade A++ commercial real estate has emerged as a global value proposition offering world-class quality at a more efficient cost," DLF Vice Chairman and Managing Director (Rental Business)
Sriram Khattar
told PTI.
To leverage this advantage, DLF Group, which has a huge licensed land bank, is expanding its portfolio of rent-yielding commercial assets in a big way and constructing office and retail complexes in
Gurugram
, Chennai, Delhi and Noida amid strong demand from corporates and retailers.
"Since the post-COVID recovery, DLF has focused on expanding its commercial footprint in key urban hubs at
Delhi-NCR
and Chennai. With an annual capex and approvals outlay of approximately Rs 5,000 crore annually for FY26 and FY27 across its joint ventures with GIC, Hines, and its own balance sheet, DLF is building some of the country's most premium commercial assets," Khattar said.
The development of premium shopping malls and office spaces would "significantly boost rental income in the coming years", he added.
DLF Group hold the bulk of its commercial assets under its joint venture company
DLF Cyber City Developers
Ltd (DCCDL).
In this JV firm, DLF has a 66.67 per cent stake while Singapore sovereign wealth firm GIC has a 33.33 per cent shareholding.
DLF Group also has a JV with US-based Hines to develop a 3 million square feet office complex in Gurugram. It has a 67 per cent stake in this JV.
Out of the total 45 million square feet of the Group's operational portfolio, around 43 million square feet are under DCCDL.
To expand its commercial portfolio, DLF Group has a 28 million square feet area under the planning and development stage.
Out of this, more than 17 million square feet are under construction and over 6 million square feet are expected to be completed in the current fiscal itself.
DLF is building two large shopping malls in Gurugram and Noida.
Office complexes are being developed in Gurugram and Chennai, while the data centre is in Noida.
Recently, DLF reported that DCCDL has clocked an 11 per cent annual growth in office rental income to Rs 3,874 crore during the last financial year.
DCCDL's rental income from retail real estate properties grew 6 per cent to Rs 880 crore last fiscal year from Rs 828 crore in the 2023-24 financial year.
On the strong financial and operational performance of DCCDL, Khattar highlighted that Crisil has enhanced its rating to 'AAA' with a stable outlook.
"This is probably among the very few non-listed entities in the country which have got an AAA rating. At the same time, ICRA upped our rating from AA+ stable outlook to AA+ with a positive outlook," he said and hoped that rating would further improve after the results of the fourth quarter of last fiscal.
DLF is India's largest real estate firm in terms of market capitalisation.
Since its inception, DLF has developed more than 185 real estate projects and developed more than 352 million square feet of area.
DLF Group has 280 million square feet of development potential across residential and commercial segments, including current projects under execution and the identified pipeline.
DLF is primarily engaged in the business of the development and sale of residential properties (the Development Business) and the development and leasing of commercial and retail properties (the Annuity Business).