DLF to invest Rs 10,000 crore in premium office spaces and shopping malls to boost rental income

Time of India

26-05-2025

Real estate giant
plans to allocate Rs 10,000 crore during FY25 and FY26 towards constructing high-end office spaces and shopping centres to boost its rental revenue. The group currently manages 45 million square feet of commercial properties, comprising 41 million square feet of offices and 4 million square feet of retail spaces, generating yearly rental income exceeding Rs 5,000 crore.
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"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.
DLF Group, with its substantial licensed land bank, is actively expanding its commercial asset portfolio by constructing office and retail complexes in Gurugram, Chennai, Delhi and Noida, responding to strong corporate and retail demand.
"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 upscale shopping centres and office spaces will substantially increase rental income in future years, he noted.
DLF Group owns most commercial assets through DLF Cyber City Developers Ltd (DCCDL), where it holds 66.67 per cent stake, with Singapore's GIC owning 33.33 per cent.
The group additionally maintains a joint venture with US-based Hines, holding 67 per cent stake, to develop a 3 million square feet office complex in Gurugram.
Of the group's 45 million square feet operational portfolio, approximately 43 million square feet falls under DCCDL.
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DLF Group has 28 million square feet area planned for development, with over 17 million square feet under construction and 6 million square feet scheduled for completion this fiscal year.
The company is constructing two large shopping centres in Gurugram and Noida.
Office developments are underway in Gurugram and Chennai, alongside a data centre in Noida.
Recent reports show DCCDL achieved 11 per cent annual growth in office rental income, reaching Rs 3,874 crore last financial year.
DCCDL's retail property rental income grew 6 per cent to Rs 880 crore last fiscal from Rs 828 crore in 2023-24.
Regarding DCCDL's robust performance, Khattar highlighted Crisil's enhanced 'AAA' rating with 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, anticipating further improvement after fourth quarter results.
DLF leads India's real estate sector in market capitalisation.
Since inception, DLF has completed over 185 real estate projects, developing more than 352 million square feet.
The group maintains 280 million square feet development potential across residential and commercial segments, including ongoing projects and identified pipeline.
DLF primarily focuses on residential property development and sales (Development Business) alongside commercial and retail property development and leasing (Annuity Business).