In the recently released annual report for 2022-23, Rajiv Singh, Chairman of DLF, expressed confidence in the Indian housing sector, foreseeing a sustained increase in sales. Singh attributed this positive outlook to several factors, including rapid urbanization, improved affordability, favorable consumer sentiments, and rising aspirations among homebuyers. He also highlighted a noteworthy trend of consolidation within the sector, as customers increasingly gravitate towards reputable and organized real estate developers.
Singh emphasized the strong demand for housing, stating that the market conditions remain favorable. He acknowledged the significant role played by urbanization, improved affordability, and the aspirations of consumers in driving this demand. Singh further noted a growing preference among homebuyers for credible developers who possess a proven track record of financial stability and the ability to deliver high-quality, secure, and sustainable projects.
DLF’s development business performed exceptionally well in the previous fiscal year, surpassing sales figures from the preceding year. Sales bookings reached a record-breaking amount of Rs 15,058 crore, with the luxury housing project “The Arbour” contributing Rs 8,000 crore in sales during the March quarter. Singh expressed satisfaction with the market response to the company’s new product offerings.
Given the robust demand and favorable market conditions, DLF remains focused on expanding its business by launching projects in various locations to cater to the evolving market needs. Singh emphasized the company’s strategy of introducing a diverse range of offerings to meet the varied demands of homebuyers.
Singh also highlighted positive developments in the office segment, noting a gradual recovery with improved occupancy levels across DLF’s portfolio. Rental growth, particularly from mark-to-market rentals and DLF Downtown in Gurugram, contributed to this improvement. He also mentioned the occupancy certificate received for the new IT campus and data center in Noida, underscoring the growth potential of this region.
In the retail sector, Singh reported a significant rebound with increased footfall and consumption across DLF’s portfolio. This recovery was attributed to the luxury segment and the expansion of international brands. DLF’s retail business achieved high occupancy levels and sustained growth in the previous fiscal year. The company plans to double its retail portfolio over the next 4-5 years through the construction of new retail destinations.
DLF, the largest realty firm in India in terms of market capitalization, has an extensive track record with over 153 real estate projects and more than 330 million square feet of developed area. The company operates primarily in the development and sale of residential properties (development business) as well as the development and leasing of commercial and retail properties (annuity business).
Currently, DLF’s annuity segment has a portfolio of over 40 million square feet, and the company has a development potential of 215 million square feet across residential and commercial sectors.
As the Indian housing sector continues to experience robust demand, DLF remains committed to meeting the evolving needs of homebuyers and capitalizing on the favorable market conditions. With a strong market presence and a focus on quality and customer satisfaction, DLF is poised to contribute to the growth and development of India’s real estate sector.