DLF builds on robust luxury home demand

Buoyed by a robust demand for its properties in the ongoing fiscal year, real estate developer DLF Ltd has raised the pre-sales bar higher for FY25. It has already surpassed its pre-sales (bookings) target of ₹13,000 crore for FY24 within nine months of the year by clocking ₹13,316 crore, helped by new launches.

- Harsha Jethmalani

Thus, HDFC Securities now expects FY24 pre-sales at ₹15,000-16,000 crore. "Post this performance, concerns may emerge on FY25 pre-sales, which may be mitigated by a strong FY25 launch pipeline of ₹32,000 crore, of which ₹24,200 crore is earmarked for the luxury segment," said the brokerage in a report.

In FY25, DLF plans to launch 10 million square feet (msf) projects. These will include a super-luxury project in DLF Phase V and the Privana South Phase 2 project in Gurugram; luxury projects in Chennai and Goa; Phase I of the Mumbai project; and projects in Panchkula. The Mumbai project is an SRA (slum rehabilitation authority) one under the joint development agreement model. Given the elevated competitive intensity in the Mumbai Metropolitan Region and challenges relating to SRA projects, investors would be better off tracking progress here. For now, DLF seems to be in good shape. The company is eyeing what it calls a moderate 15% pre-sales growth in FY25.