A BLUEPRINT FOR GROWTH

Aakash Ohri, Joint Managing Director and Chief Business Officer at DLF Home Developers, discusses expansion, luxury housing demand, and strategic focus.

- Nagesh Joshi

India's luxury realty market has been witnessing major changes in the recent past, marked by shifting consumer preferences, geographic diversification of demand, and evolving investment patterns. There has been a growing demand from nonresident Indians (NRIs) as well as domestic consumers looking for premium housing options, mainly in the metropolitan centres.

Given this context, India’s large listed real estate developer, DLF has been making strategic portfolio diversification moves in line with real estate investment trends and consumer preferences. Premium and luxury housing that promise higher margins continue to be the core focus area of DLF. The company’s stress on integrated townships and planned communities has also been in line with the evolving consumer lifestyle choices when it comes to real estate.

Benefited by the increasing demand from NRI customers which has expanded the consumer-base for luxury housing, DLF reported the highest-ever share of sales from NRIs last year. The company’s business expansion into Mumbai market also reflects its continued effort to tap the pan-India demand for luxury realty.

While aligned with its brand positioning, the luxury housing business also involves long gestation periods and a challenge of targeting smaller customer pie compared to the mid-income segment. Luxury housing projects call for substantial upfront capital investment. The luxury housing segment may also involve a few market-specific challenges—especially the highly regulated urban centres such as Mumbai. For instance, Mumbai's real estate market is governed by a host web of compliances including Coastal Regulation Zone (CRZ) rules, restrictions from the Navy and other defense establishments, and forest regulations.