DLF’s Luxurious Housing Project Shows a Drastic Surge
- January 11, 2024
- By: Yukti Kasera
- NEWS
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According to industry sources, listed real estate developer DLF Real Estate company is anticipated to begin construction on a luxury residential project in Gurugram's sector 76, which borders Southern Peripheral Road (SPR), with an anticipated top line of between Rs 8,000 crore and Rs 10,000 crore.
The official launch, which is anticipated to take place in January 2024, is said to be the DLF's most important residential launch to date, following "The Arbour" earlier this year.
The project is anticipated to launch with ultra-luxury residences priced between Rs. 17,000 and Rs. 18,000 per square foot. According to industry sources, the project is anticipated to comprise 1,100 upscale apartments, with prices per unit expected to range from Rs 7 crore to Rs 8 crore.
According to them, this project also represents DLF's first foray into the SPR region of Gurgaon, an attempt to broaden its scope beyond its well-known luxury and ultra-luxury homes on Gurugram's Golf Course Road.
According to people with knowledge of the situation, DLF's larger goal of creating an integrated township spanning 120 acres in Gurugram is in line with this expansion into the SPR area. According to additional sources, the project will probably be called Privana South because it will be a part of the integrated township, and the ecosystem will be called Privana. They claimed that the next initiatives are also being marketed as phase two of "The Arbour," which was first introduced earlier. The planned luxury housing development is probably going to cover 25 acres.
In the second quarter of this fiscal year, DLF Real Estate Projects reported a consolidated net profit of Rs 629 crore, a 29 percent year-over-year (YoY) increase. From July to September of 2023–24, total operating income increased to Rs 1,476 crore from Rs 1,360 crore in the same period the previous year. DLF hopes to book sales of Rs 13,000 crore in FY24 and achieves debt-free status with a net cash positive of Rs 142 crore.
In the second quarter, the company's sales bookings exceeded Rs 2,228 crore, with gross margins standing at 57%. DLF ended the quarter with a net cash positive position. Due to high demand, DLF stated in a regulatory filing on October 31 that it was aiming for sale bookings of roughly Rs 13,000 crore during this fiscal year and would be launching multiple new projects.
Pre-formal launch sales of DLF's luxury high-rise housing project, "The Arbour," broke records earlier this year, with sales exceeding Rs 8,000 crore. It sold out entirely ahead of its scheduled release.
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DLF is all set to focus on the high margin projects. Real estate giant DLF Ltd. will consider high margin projects due to the robust demand from a new generation of younger, double-income buyers in addition to NRIs. Additionally, the business is "on course" to "surpass" its FY24 bookings guidance of ₹13,000 crore.
Earlier in the year, the company achieved net debt positivity. Additionally, the company would now be able to access "high margin projects" thanks to the cash surplus, according to Aakash Ohri, Joint Managing Director and Chief Business Officer, DLF.
The company reported sales of nearly ₹9,000 crore in Q3, compared to an average of ₹4,200- 4,300 crore in the first half of the fiscal year due to launches.
With 1,113 apartments spread across seven towers in Gurugram's Sector 76 and 77, its most recent luxury residential development, "DLF Privana," was completely sold out and generated a revenue of roughly ₹7,200 crore. In FY23, DLF recorded sales of ₹15,083 crore, of which nearly ₹8,000 crore came from The Arbour.
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