Latest news with #PrivanaSouth
&w=3840&q=100)
Business Standard
11-08-2025
- Business
- Business Standard
Luxury homes to prime rentals: DLF's ₹33,500 cr expansion plan decoded
India's largest real estate developer, DLF Ltd, will pump in ₹23,500 crore to complete residential projects already launched across Delhi-NCR and Mumbai. An investor presentation revealed that the total pending cost for completing these projects stands at ₹23,500 crore. To meet this commitment, DLF has a cash balance of ₹10,429 crore, including ₹7,782 crore parked in Real Estate Regulatory Authority (RERA) escrow accounts, along with customer receivables of ₹37,220 crore from units already sold. In a recent analyst call, DLF Group CFO said the company spent around ₹750 crore on construction in the first quarter of FY25, with a marginal increase expected in subsequent quarters. Post-pandemic, DLF has launched several marquee residential projects in Delhi-NCR, Mumbai, and the tri-city of Chandigarh. Blockbuster Sales in New Launches In Q2 FY25, DLF, along with Trident Realty, launched a Mumbai project of 416 flats, selling out completely for ₹2,300 crore. In Q1, it launched and sold all 1,164 luxury apartments in DLF Privana North in Gurugram for about ₹11,000 crore. This follows the sell-out of Privana West and Privana South last year, which together fetched around ₹12,800 crore. These high-value launches have powered DLF's record-breaking sales bookings of ₹21,223 crore in FY24, up from ₹14,778 crore in FY23. For FY25, the company has guided sales bookings of ₹20,000–₹22,000 crore and has already achieved ₹11,425 crore in Q1 alone. DLF is making big bets on its rental business The real estate major plans to pump in ₹5,000 crore each in FY26 and FY27 as capital expenditure, targeting rental earnings of around ₹6,700 crore by the close of FY26. According to Sriram Khattar, Vice Chairman and MD (Rental Business), this growth will be powered by new office and retail projects expected to start generating rentals within the current fiscal. Of the projected earnings, ₹5,900 crore will come from DCCDL (DLF Cyber City Developers) and about ₹750 crore from DLF and its joint venture Atrium Place, developed with Hines. DLF's rental portfolio currently spans 43–44 million sq ft across office parks, IT/ITeS SEZs, retail spaces, and hospitality assets. Massive Development Pipeline DLF's portfolio spans over 185 completed projects covering more than 352 million sq ft, alongside a commercial and retail leasing (annuity) portfolio of 46 million sq ft. With 280 million sq ft of future development potential, DLF remains well-positioned to ride the current wave of housing demand, particularly in the premium segment. Analysts say the combination of strong pre-sales, healthy cash reserves, and a fully-funded execution plan puts DLF in a solid position to maintain its growth momentum in India's resurging real estate market. JM Financial Research has a 'Buy' rating with a sum-of-the-parts valuation of ₹1,000. 'Aided by the rampup in new assets and a strong development pipeline, we expect rental income to grow at 11 per cent annually over FY25-FY28. DLF, with its steady annuity cash flows and fully paid-up land banks, remains extremely well-placed to scale up across segments and newer geographies," said analysts at the brokerage firm. Pipeline & Completions 28 million sq ft under planning and development in the rental segment. 5 million sq ft scheduled for completion in FY26. Upcoming Rental Streams Rentals from Downtown Gurugram and Downtown 3 Chennai to start from Sept–Oct 2025; occupancy certificates already received. Atrium Place almost fully leased — only 150,000 sq ft remaining out of 3.1 million sq ft; expected to be fully committed by month-end. First three blocks (2.1 million sq ft) at Atrium Place to get OC by month-end; 3 tenants already started fit-outs. Rentals from Atrium Place expected from Dec 2025–Jan 2026. Q1 FY25 new residential sales bookings at ₹11,425 crore, up 78% YoY, driven by DLF Privana North launch in Gurugram. Goa launch awaiting approvals; next phase of Dahlias planned for March–April 2026, featuring a new experience center. Mumbai: Phase one over 5.18 acres completed; next phase to start next year due to regulatory approvals in Maharashtra. Framework in place to maintain mid-teens annual rental growth. Existing portfolio showing 7%–8.5% annual rental income growth. Full-year rental growth projected at ~15%, with quarterly variations based on asset handovers and rental commencements.
Mint
24-06-2025
- Business
- Mint
Why DLF is walking on eggshells beyond Gurugram, its home turf
Bengaluru: Within a week of launching 'Privana North', its new premium highrise project in Gurugram in June, DLF Ltd sold all the 1,152 four bedroom-homes and the 12 penthouses, raking in about ₹11,000 crore. Last year, it sold two projects, 'Privana West' and 'Privana South', in the eponymous 116-acre township within 72 hours of their respective launches, for ₹12,800 crore. By far the biggest sale, however, was the super-luxury project The Dahlias, which raked in ₹13,744 crore after its launch last Diwali. Much like consumers falling over each other to buy the latest iPhone, this voracious homebuyer appetite for its premium properties helped DLF, India's largest real estate developer in terms of market capitalization, become the second-highest-selling developer in 2024-25, after Godrej Properties Ltd. However, the company's ₹21,223 crore residential sales came largely from Gurugram, its home market, unlike Godrej, which operates in most of the top cities. And despite the creditable sales performance, the residential and commercial property developer has given a rather flat guidance for 2025-26—projecting sales of ₹20,000-22,000 crore. Analysts at Elara Securities say the projection is cautious and conservative. In comparison, DLF's top three competitors—Godrej Properties, Lodha Developers Ltd and Prestige Estates Projects Ltd—are more optimistic, having guided for higher sales growth this year. From DLF's perspective, rather than making short-term gains when the property market is on a high, the focus appears to be firmly on the long term. In line with this thinking, the company has laid out a five-year roadmap with a project pipeline of over ₹1 trillion that will roll out between 2024-25 and 2029-30. That roadmap involves land monetization, close to becoming zero gross debt at the group level, scaling up rental revenue, focusing on luxury sales, and generating ₹25,000 crore of gross cash for its development business. Becoming debt free is a huge step for the company psychologically. Between 2008 and 2017, DLF's net debt had soared to ₹26,000 crore, the bulk of it due to the development business, and it had to sell a land parcel in Mumbai, a stake in its rental arm (DLF Cyber City Developers or DCCDL) and other non-core assets to ease the intense pressure on its balance sheet. In 2023-24, DLF took a big step in this direction when it hit the zero debt mark in its development business, and became net cash positive to the tune of ₹1,547 crore. Last fiscal, the development business had net cash of ₹6,848 crore. The rental arm, DCCDL, however, has a debt burden of ₹17,488 crore. Analysts aren't too concerned about that debt, however, noting that it is low-cost and necessary given the capital-intensive nature of the business. The company, however, wants to pare it sharply. DLF's prospects look much brighter today, but a concentration risk looms large over those prospects, because most of its eggs are in one basket: the National Capital Region (NCR), particularly in Gurugram. In the earlier boom cycle, the developer burnt its fingers with its pan-India ambitions, spreading itself thin and piling up debt. The scars from that experience appear to be heavily influencing its cautious approach this time around, as it tests the waters in Mumbai and Goa. While the company is being conservative, investors expect it to continue its good run. Over the past three months, the DLF stock has soared 22.07% to ₹848.60 (as of 23 June) in the wake of multiple launches, outperforming the Nifty Realty Index, which was up 18%. The stock beat the sectoral index over the last 12 months as well. Building in the boondocks Delhi Land and Finance (DLF) was founded by Chaudhary Raghavendra Singh in 1946. In the first couple of decades, it developed multiple plotted and housing colonies across many Delhi neighbourhoods. In the years that followed, the company acquired vast amounts of land in Gurugram and the NCR. DLF took off under the leadership of the founder's son-in-law, Kushal Pal Singh, a former army officer and now chairman emeritus of the company, whose vision for that neck of the woods in Haryana stretched out decades ahead. Singh gave a hint of that vision through an anecdote in the book Why The Heck Not?, published last year, which he coauthored with Aparna Jain. On a muggy Sunday afternoon in 1980, he had driven down to Gurgaon (as the area was known then), where DLF had a 30-acre land patch. As he sat chatting with the villagers in Haryanvi, a Jeep broke down on the nearby Gurgaon-Faridabad Road. The vehicle's owner, Rajiv Gandhi, was on one of his habitual long weekend drives. When they met, Gandhi asked Singh what he was doing in the 'oppressive heat". Singh said, 'Right now, I am sitting here twiddling my thumbs, but I could be building a brand new city." 'Building a city in these boondocks?" Gandhi asked. 'Tell me more." Today, DLF has a land bank with 205 million sq. ft of development potential for its businesses, large enough to keep it busy for another 20 years. None of its peers can boast of such a long runway—they have to buy land at current market prices, and then develop it, which is a longer and more expensive process. Moreover, the low-cost land, coupled with premium and luxury offerings, allow DLF to enjoy higher margin accretion. If at first you don't… At the peak of the real estate boom in 2005, DLF bought 17 acres of mill land in central Mumbai for ₹702 crore. Then, in 2012, when the markets turned bad, and its debt was piling up, the developer sold the land to Lodha Developers for ₹2,700 crore to exit the non-core market. In the following years, DLF slowly withdrew its pan-India strategy to focus on the NCR for its residential business. Now, several years later, it is turning westward again, focusing on high-end projects with good profit margins. In the coming months, DLF is set to re-enter Mumbai, the country's most valuable property market, to launch its first housing project there, a slum redevelopment effort in suburban Andheri, in partnership with Delhi-based Trident Realty. The project is premium—pricing for the first phase is expected to be at ₹5-7 crore per unit—but not in the luxury category. 'Our product and approach may be tailored to local sensitivity, but DLF will not dumb down or discount its projects," asserted Aakash Ohri, joint managing director and chief business officer, DLF Home Developers Ltd. But Mumbai is different terrain and a very competitive market. Established developers such as Lodha, Oberoi Realty, K Raheja Corp and newer entrants such as Prestige Estates are all jostling with each other for a slice of the lucrative pie. 'The property market was speculative in 2005, and developers such as DLF took aggressive bets by entering multiple cities. The market is rational now. DLF is re-entering Mumbai when there is demand assurance, and the company has a loyal investor base," said Pankaj Kapoor, managing director, Liases Foras Research. 'Still, it is important for the first project to do well for them to expand further." In 2025-26, DLF will also launch ultra-luxury villas in its first project in Goa, a market it had attempted to enter in the past without any success. With the residential business, DLF will stick to a few markets, Delhi-NCR and Mumbai, with Gurugram remaining its core hub. The rental business, however, will expand across more cities, including Chennai and Hyderabad. Expanding commercial realty Beyond its more-talked-about, glamorous, luxury residential projects, DLF also has a big rental portfolio of premium offices and shopping malls. The existing rental portfolio (including office and retail) is about 46 million sq. ft, and another 16 million sq. ft is under development, making it almost as large as Embassy REIT, the country's largest office real estate investment trust in terms of area. Data centres is a relatively new bet for the company, which has completed and leased two data centres in Noida, with a third one under construction and already pre-leased. To propel growth, DLF will pump in ₹10,000 crore over the next two years to build offices and shopping malls. Sriram Khattar, vice-chairman and managing director (rental business), DLF, says the strategy is focused: to cater to the growing demand of global companies that want to come and set up their operations in India. 'Besides demand from global occupiers, there is domestic demand from Indian companies: IT-ITES firms, other corporates, and flexible space providers. The flexi providers also lease the space to international companies," said Khattar. 'India offers competitive advantages, both in terms of global quality real estate at a low cost and an English-speaking, tech savvy young population." Given the pace of development, rental revenue, which was at ₹5,000 crore last year, is likely to double in the next four-five years. DLF's upcoming projects are in Gurugram, Chennai and Noida. With a huge licensed land bank available for future expansion, the rental business is set to grow fast. 'Last year (2024) was a record year for commercial office leasing in the country. Large office developers such as DLF are looking to expand on the back of good demand from both global and domestic occupiers," said Ram Chandnani, managing director, advisory and transaction services, at property advisory CBRE India. The company's retail or shopping mall portfolio is also set to double to 8.2 million sq. ft This year, it will open three new properties—DLF Midtown Plaza in Delhi, Summit Plaza in Gurugram, and Promenade, which will be Goa's largest mall. It is also building a two million sq. ft 'Mall of India' in Gurugram. 'The pace of expansion will be quicker from hereon, aided by economic growth, higher disposable income and low organized retail penetration. After the experience we have gathered over the years, we now have a better understanding," said Pushpa Bector, senior executive director and business head at DLF Retail. Competition at home Despite a slight fall in housing sales last year, the top four developers—Godrej Properties, Prestige Estates, DLF and Lodha Developers—are collectively aiming to cross ₹1 trillion in housing sales in 2025-26, marking the strongest year yet for residential developers. DLF is possibly the only listed developer with a sizable residential and rental portfolio and is looking at large mixed-use developments combining both office and retail in a few cities. While Godrej Properties and Lodha largely focus on residential projects, Bengaluru's Prestige Estates is rebuilding its office and retail portfolio, after selling a bulk of its commercial assets to Blackstone a few years ago. Across its business verticals, DLF is also not keen on small-sized, random projects. It recently exited Kolkata, which it had entered two decades ago, selling an IT/ITes special economic zone and an office property. DLF's peers are, however, far more aggressive. Godrej Properties is expanding its pan-India presence further and has been on a land-buying spree. It also has a presence in Gurugram today. Prestige Estates and Mumbai's Oberoi Realty will also enter DLF's home turf going forward. But just as DLF faces challenges in other parts of the country, the invaders will find it hard to take on the leader in Gurugram. 'The difference between DLF and the other developers in Gurugram in size and scale is huge. There are many customers who invest only in DLF. It won their confidence because of its delivery, track record and return on investment," gushed Santhosh Kumar, vice-chairman, Anarock Property Consultants. 'Some DLF projects may have been delayed in the past for various reasons…but it eventually delivered. That's how it can command a premium in the residential as well as office segments," he added. As DLF chairman Rajiv Singh put it during the company's March analyst meet, 'In our industry, many people are aggressive, and far more optimistic. We were like that too. There is a certain stage of growth and evolution where you need to be like that. Luckily, we have crossed that point. We have got all the buffers already built up."
&w=3840&q=100)
Business Standard
18-06-2025
- Business
- Business Standard
Real estate giant DLF aims to launch Mumbai project by next quarter
DLF will officially launch its Mumbai housing project in the next quarter as the company has received the RERA approval a day before, while the real estate major sold out all 1,164 units in its luxury residential project Privana North securing Rs 11,000 crore revenue, DLF Homes joint managing director and chief business officer Aakash Ohri told Business Standard. About 25 per cent of the purchases have come from non-resident Indians (NRIs) and overseas buyers from Canada, Australia, and Jakarta, he added. Located in Gurugram's Sectors 76 and 77, the 17.7-acre project includes six residential towers rising up to stilt plus 50 storeys, which are DLF's tallest buildings to date. The project includes 1,152 4-BHK units and twelve penthouses. According to people in the know, the average ticket price per unit stood at around Rs 9.5 crore, while all penthouses were priced at around Rs 25 crore each. Attributing India's geopolitical stability versus global instability as a factor contributing to this growth, he said that NRIs today are investing in properties with DLF, which are almost commensurate to the lifestyles that they have been living in whichever country they are. 'It is no more just an investment as they want home away from home, especially in their country of birth or even for their family,' he added. Speaking in an analyst call last month Ohri had said that there has been a sizable demand for both its upcoming products, in Privana and Mumbai, from local micro markets as well as from the rest of the country as well as non-resident Indians (NRIs). 'DLF products are agnostic to geography in terms of investors. So today, one is looking at various sets of people who are wanting to pick up a DLF home as not only do they make money in capital appreciation, but once you lease them out, you have recurring income also,' he had added. The company has been witnessing an uptick in NRI investments for its luxury and ultra luxury products over the years. In the financial year 2022-23 (FY23), DLF generated $240 million in sales from NRI investors, representing approximately 14 per cent of total sales. This number increased to $408 million in FY24 and $421 million in FY25 This project is the third phase within DLF's 116 acre integrated Privana project, following its launches of Privana South and West in 2024, which included 795 and 1,113 units respectively. In these projects, NRI buyers accounted for 25 per cent and 27.8 per cent of the total sales in DLF Privana South and Privana West respectively, according to numbers shared by the company. Commenting on the sell out of Privana North, Ohri said that the strong sales response reflects a clear, latent demand for DLF offerings, driven by the success of our past projects. The Privana project is located along the Southern Peripheral Road (SPR) in Gurugram, which is being touted as an upcoming micro market within Delhi NCR. DLF's aggressive push in Gurugram comes even as it is planning to launch residential projects with an estimated sales potential of Rs 73,900 crore in the medium term, according to the company's investor presentation. According to a report by real estate consultancy firm Anarock, SPR is a key micro market within Gurugram's real estate landscape, spanning from the juncture of Gurugram-Faridabad Road near Sector 58 to its convergence with NH-48 in the vicinity of Sector 74A.
&w=3840&q=100)
Business Standard
18-06-2025
- Business
- Business Standard
DLF sells 1,164 luxury units for ₹11,000 cr in Gurugram's Privana North
Realty major DLF said on Wednesday it has sold all 1,164 units in its luxury residential project Privana North in Gurugram, thereby earning ₹11,000 crore within a week. The 17.7-acre project in Sectors 76-77 includes six residential towers of up to 50 storeys, which are DLF's tallest buildings. It has 1,152 four-BHK units and 12 penthouses. The average ticket price for a unit was ₹9.5 crore, while the penthouses were priced at around ₹25 crore each, according to people aware of the sales. 'The four BHK apartments measure a carpet area of around 207 square metres (2,236 square feet) and penthouses extend up to around 450 square metres of carpet area (4,847 square feet),' said DLF in a regulatory filing. Privana North is the third phase of DLF's 116-acre integrated project, which in 2024 had launched Privana South and West of 795 and 1,113 units, respectively. Both projects were sold out in 72 hours for a combined approximate sales realisation of over ₹12,790 crore. The strong sales response to Privana North 'reflects a clear, latent demand for DLF offerings', said Aakash Ohri, joint managing director and chief business officer of DLF Home Developers. Ohri, in an analyst call last month, said there was 'considerable demand' for DLF's projects in Gurgaon and Mumbai. 'DLF products are agnostic to geography in terms of investors. So today, one is looking at various sets of people who are wanting to pick up a DLF home as not only do they make money in capital appreciation but once you lease them out, you have recurring income also,' he had said. The Privana project in Gurugram is located along the Southern Peripheral Road (SPR), an upcoming micro market within Delhi NCR. DLF's aggressive push in Gurugram comes as it plans to launch residential projects with an estimated sales potential of Rs 73,900 crore in the medium term, according to the company's investor presentation.
Mint
18-06-2025
- Business
- Mint
DLF clocks ₹11,000 crore in bookings as Privana North project sells out in a week
Bengaluru: India's largest listed real estate firm, DLF Ltd, has sold out its newest premium residential project, DLF Privana North in Gurugram, within a week of launch, underscoring the strength of luxury housing demand in the country's top property markets. The project, part of the company's larger 116-acre township DLF Privana in sectors 76 and 77, Gurugram, offers 1,152 four-bedroom apartments and 12 penthouses spread across 17.7 acres. With apartments priced at an average of ₹ 9.5 crore and penthouses at ₹ 25 crore, the rapid absorption signals continued appetite among affluent domestic and non-resident Indian (NRI) buyers for high-end, master-planned communities. The robust sales follow similar sellouts at DLF Privana West and Privana South, which collectively clocked sales worth ₹ 12,800 crore last year. This latest launch cements DLF's position as the dominant player in Gurugram's luxury housing segment, even as it eyes expansion into new, more competitive markets like Mumbai and Goa later this fiscal year. 'The strong sales response reflects a clear, latent demand for DLF offerings, driven by the success of our past projects. We saw interest from buyers across India and around the world. This success also speaks to the strength of the larger community we are building, continuing the legacy of DLF 5 as a benchmark for luxury, master-planned living,' Aakash Ohri, joint managing director and chief business officer of DLF Home Developers Ltd, said in a statement. 'Privana is our answer to the growing demand from discerning buyers, in India and abroad, who seek future-ready, thoughtfully designed communities," Ohri added. DLF's strong momentum mirrors a broader surge in luxury housing demand across India's top cities, fuelled by rising disposable incomes, a swelling pool of high-net-worth individuals, and increased allocation toward real estate amid limited high-yield alternatives. In the January-March quarter this year, 1,930 housing units priced at ₹ 4 crore and above were sold across India, marking a 28% year-on-year increase, according to property advisory CBRE. Delhi-NCR accounted for the largest share of these sales, followed by Mumbai. The developer reported record sales bookings of ₹ 21,223 crore in FY25, up 44% from ₹ 14,778 crore the previous year. It has guided for sales of ₹ 20,000–22,000 crore in FY26, banking on a pipeline that includes the next phase of its super-luxury The Dahlias project in Gurugram as well as launches in Mumbai and Goa.
