DLF Will develop a new group housing project ‘The Arbor’, which is spread over 25 acres and comprises 5 towers with a total of 1,137 premium apartments.
DLF, the country’s largest real estate firm by market cap, sold all 1,137 units, each of which cost 7 crores and above, for more 8,000 crores within 3 days (15–17 February).
Speaking to PTI, DLF Ltd CEO Ashok Tyagi said, “We will develop about 4.5 million sq ft of area in this new project.”
When asked about the construction cost, he said that it would be in between 7,000-8,000 per sq ft considering the amenities promised in this luxury project.
Tyagi said the increase in the prices of key materials like cement and steel has led to an increase in the overall construction cost.
Total construction cost will be approx. 3,500 crore over the next four years, said Akash Ohri, executive director of DLF Group.
DLF sold apartments 18,000 per sq. ft. in this project located in Sector 63 on Golf Course Extension Road.
Ohri said the rate quoted by DLF was higher than the current market price 14,000-16,000 per sq.ft in this area.
DLF will build 1,137 identical 4BHK apartments, each of 3,950 sq ft in size, in the new project.
Both Tyagi and Ohri described the sale bookings in the project in such a short span of time as “historic” and “a record” in the Indian residential real estate market.
Asked about the total sales bookings of DLF in the current financial year, Tyagi said the company has achieved sales bookings more than this. 6,500 crore during the April-December period of this financial year.
with sales of over 8,000 crore in this project and miscellaneous sales in other projects, he said, adding that the total sales booking in 2022-23 should be close to Rs. 15,000 crores.
was the company watch 7,273 crore sales booking in the last financial year.
On DLF likely to become India’s largest realty firm this fiscal in terms of sales bookings, Tyagi said, “We are not in that race.”
“We want to remain the most profitable real estate company in the country with the highest margins on a sustainable basis,” the DLF CEO asserted.
Asserting that the market sentiment remains strong, Ohri said the company plans to launch several projects in the tri-city of Delhi-NCR, Chennai and Chandigarh to capitalize on this spurt in demand.
Ohri said that DLF has a license for land parcels at these locations and will launch it after obtaining necessary approvals.
DLF CEO Tyagi said that people are upgrading to bigger homes, especially after the Covid pandemic.
He added that demand is strong in Tier I and Tier II cities amid short supply.
Tyagi said the big players are gaining market share.
DLF has two verticals – the development business which is housing and the rental business where it builds commercial projects (offices and malls) and then leases them out to corporates and retailers.
Till date, the company has developed over 153 real estate projects and an area of over 330 million sq.ft.
DLF Group has a development potential of 215 million sq ft in residential and commercial sectors.
The rent-yielding commercial properties are largely held by DLF Cyber City Developers Limited (DCCDL), a joint venture between DLF and Singapore sovereign wealth fund GIC.
DLF holds around 67 per cent stake in the joint venture.
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