 "DLF plans to launch Rs 7500cr worth premium housing project in Gurugram")
Realty major DLF Ltd plans to launch a luxury housing project in Gurugram next month with an estimated sales revenue of around Rs 7,500 crore as it seeks to tap strong demand for high-end apartments.
The company plans to develop around 1,100 apartments in this residential project, DLF Group Executive Director and Chief Business Officer Aakash Ohri told PTI.
"We are planning to launch next month a premium residential project in Sector 63 Gurugram. The estimated sales realisation of this project will be around Rs 7,500 crore," he said.
"Demand for real estate across various price points is very strong, especially for products offered by trusted developers," Ohri said.
DLF, the country's largest real estate firm in terms of market capitalisation, achieved a 45 per cent growth in sales bookings to Rs 6,599 crore in April-December period of this fiscal and is on track to achieve its annual sales guidance of Rs 8,000 crore.
DLF's sales bookings stood at Rs 4,544 crore in the year-ago period.
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"We have achieved robust growth in our sales bookings in the first nine months of this fiscal year. The sales are driven by demand for good quality products," Ohri said.
He said the company has launched apartments and independent floors at different price points, which helped achieve better sales.
DLF has launched residential projects in Delhi, Gurugram, Panchkula and Chennai this fiscal.
Asked about sales bookings for the entire fiscal, Ohri said the company has given a guidance of Rs 8,000 crore for the 2022-23 fiscal and is expected to achieve it comfortably.
"We are on track to meet our sales booking targets. We may even do better than that. But we are sticking to our guidance," he added.
"Demand is very strong. People have the desire and money to purchase real estate. Customers want the safety of their money. So, they are now investing in projects of trusted real estate developers like us," Ohri said.
DLF achieved one of the highest quarterly new sales bookings of Rs 2,507 crore during October-December period, reflecting a year-on-year growth of 24 per cent.
In its investors' presentation, DLF said it will give emphasis on offering customer-oriented products.
"Encouraging response to recent products enthuses us to initiate larger developments offering differentiated living and best-in-class amenities," it said.
The focus would remain on strong cash generation and margin accretion by offering quality products at established locations, DLF said.
On the outlook for the residential market, DLF said that the calendar year 2022 registered significant growth in housing demand driven by consumer desire towards home ownership, larger homes across established locations and better affordability.
"Larger homes offering better amenities are expected to be the preferred choice for consumers. Consolidation in favour of larger, credible players should continue.
"Calibrated demand-supply dynamics in the market leading to faster inventory monetisation. Demand momentum remains largely insulated from rising interest rates so far; quality products at established locations should continue to garner healthy interest," the company noted.
DLF on Wednesday reported a 37 per cent increase in its consolidated net profit at Rs 519.21 crore for the quarter ended December 2022. Its net profit stood at Rs 379.48 crore in the year-ago period.
Its total income, however, fell to Rs 1,559.66 crore in the third quarter of this fiscal year from Rs 1,686.92 crore in the corresponding period of the previous year.
DLF has two verticals -- development business and rental business.
Rent-yielding commercial assets are largely held by DLF Cyber City Developers Ltd (DCCDL), which is a joint firm between DLF and Singapore sovereign wealth fund GIC. DLF hold nearly 67 per cent stake in the JV.
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