DLF's Planned Market Entry and Luxury Projects
DLF, a leading real estate developer, is planning to re-enter the Mumbai residential market in the second half of the current fiscal year (2024-25). Akash Ohri, the joint managing director and chief business officer of DLF, revealed that the flats in Mumbai will be priced between Rs 6 and 8 crore.
Return to Mumbai
This marks DLF's second foray into the Mumbai market, having exited the financial capital about 11 years ago. The decision comes as part of the company's strategic expansion plans.
Luxury Villas in Goa
In addition, DLF plans to launch 62 villas in Goa, priced between Rs 40-50 crore. This launch is scheduled for the second or third quarter of FY25. Ohri mentioned, "We plan to visit Goa next quarter."
Financial Performance
DLF reported a 62% increase in its consolidated net profit for the quarter ended March 31, reaching Rs 920.71 crore compared to Rs 570.01 crore in the same period last year. Total sales bookings decreased by 2% to Rs 14,778 crore from a record Rs 15,058 crore last year. The company aims to boost sales bookings by 15% to Rs 17,000 crore in FY25.
NRI Contribution
Ohri highlighted the significant contribution of non-resident Indians (NRIs) to sales bookings. NRIs contributed 22-23% of total sales bookings in FY24. The NRI contribution to the recently launched Rs 5,590 crore project Privana West, which sold out in three days, was 27%.
Future Projections
DLF intends to maintain an NRI contribution of 22-25 percent for FY25. "We will not do more than that this year; we have a lot of domestic users, so we set quotas," Ohri stated. The company hopes to generate Rs 3,500-5,000 crore in total sales bookings from super luxury apartments out of the projected Rs 17,000 crore.
Upcoming Projects
Besides the projects in Goa and Mumbai, DLF plans to launch luxury housing projects at DLF Phase-5 in Gurgaon. These projects are expected to be revealed following the launch of villas in Goa. The upcoming DLF Phase 5 project in Gurgaon is anticipated to surpass its ultra-luxury housing project, The Camellias, where an apartment recently sold for Rs 100 crore on the secondary market.