DLF Group Invests Rs 10,000 Crore in Commercial Properties to Boost Rental Income
DLF Group, India's largest real estate firm, plans to invest Rs 10,000 crore over the next two years to develop premium office spaces and shopping malls, aiming to enhance its rental income and expand its commercial footprint in key urban areas.
Real EstateCommercial PropertiesDlf GroupRental IncomeMarket CapitalizationReal Estate NewsMay 25, 2025
DLF Group currently holds 45 million square feet of commercial assets, comprising 41 million square feet of office space and 4 million square feet of retail space. These assets generate an annual rental income of over Rs 5,000 crore. Sriram Khattar, Vice Chairman and Managing Director of DLF's Rental Business, emphasized that India's Grade A++ commercial real estate has become a global value proposition, offering world-class quality at a more efficient cost.
To capitalize on this opportunity, DLF Group is expanding its portfolio of rent-yielding commercial assets by constructing office and retail complexes in strategic locations such as Gurugram, Chennai, Delhi, and Noida. The company is experiencing strong demand from corporates and retailers, which has further fueled this expansion.
Since the post-COVID recovery, DLF has been focusing on expanding its commercial footprint in key urban hubs, particularly in Delhi-NCR and Chennai. The company is allocating an annual capital expenditure and approvals outlay of approximately Rs 5,000 crore for FY26 and FY27 across its joint ventures with GIC, Hines, and its own balance sheet. This investment will contribute to the development of some of the country's most premium commercial assets.
DLF Group holds a significant portion of its commercial assets under its joint venture company, DLF Cyber City Developers Ltd (DCCDL). DLF has a 66.67% stake in DCCDL, while Singapore's sovereign wealth fund, GIC, holds a 33.33% share. Additionally, DLF has a joint venture with US-based Hines to develop a 3 million square feet office complex in Gurugram, where DLF holds a 67% stake.
Out of the total 45 million square feet of DLF Group's operational portfolio, about 43 million square feet are under DCCDL. The company has 28 million square feet of area under the planning and development stage, with more than 17 million square feet currently under construction and over 6 million square feet expected to be completed in the current fiscal year.
DLF is actively developing two large shopping malls in Gurugram and Noida, along with office complexes in Gurugram and Chennai. The company is also constructing a data center in Noida. Recently, DLF reported that DCCDL has achieved an 11% annual growth in office rental income, reaching Rs 3,874 crore during the last financial year. The rental income from retail real estate properties grew by 6% to Rs 880 crore last fiscal year, up from Rs 828 crore in the 2023-24 financial year.
Khattar highlighted the strong financial and operational performance of DCCDL, noting that Crisil has enhanced its rating to 'AAA' with a stable outlook. This is a rare achievement for a non-listed entity in the country. ICRA has also upgraded DCCDL's rating from AA+ with a stable outlook to AA+ with a positive outlook. Khattar expressed optimism that the rating could further improve after the results of the fourth quarter of the last fiscal year.
DLF is India's largest real estate firm in terms of market capitalization. Since its inception, the company has developed more than 185 real estate projects, covering over 352 million square feet of area. DLF Group has a development potential of 280 million square feet across residential and commercial segments, including current projects under execution and the identified pipeline. The company is primarily engaged in the development and sale of residential properties (the Development Business) and the development and leasing of commercial and retail properties (the Annuity Business).
Frequently Asked Questions
What is DLF Group's planned investment in commercial properties?
DLF Group plans to invest Rs 10,000 crore over the next two years to develop premium office spaces and shopping malls.
What is the current size of DLF Group's commercial asset portfolio?
DLF Group holds 45 million square feet of commercial assets, including 41 million square feet of office space and 4 million square feet of retail space.
Which cities are DLF Group focusing on for its commercial property expansion?
DLF Group is focusing on key urban hubs such as Gurugram, Chennai, Delhi, and Noida for its commercial property expansion.
What is the annual rental income generated by DLF Group's commercial assets?
DLF Group's commercial assets generate an annual rental income of over Rs 5,000 crore.
What is the current credit rating of DCCDL, DLF's joint venture company?
DCCDL, DLF's joint venture company, has been rated 'AAA' with a stable outlook by Crisil and 'AA+' with a positive outlook by ICRA.
Related News Articles
Unlocking $48 Billion in Indian Office Space: The Rise of Fractional Ownership
India's fractional ownership market is expected to exceed $5 billion by 2030
Budget 2024: Reviving Affordable Housing - A Sector in Crisis
The real estate sector is seeking 'high-impact' measures to revive affordable housing, including special schemes, tax breaks, and revised pricing definitions.
Can Urbanization and Nature Coexist? A New Vision for Cities
As cities expand, natural spaces are dwindling. But is it possible to create a symbiosis between urbanization and nature? We explore the possibilities.
Market Sentiment Remains Robust Amidst Fresh IPOs: Anand Tandon
Anand Tandon shares his insights on the current market sentiment, IPOs, and sectors to watch out for.
MahaRERA Orders Developers to Refund Buyers Amid Complaints Over Pending Home Sales
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken action against developers in Pune, a region heavily affected by pending home sales. MahaRERA has ordered developers to refund buyers to address the growing complaints.
Tayal Corp: Pioneering Architectural Excellence in Pune's Real Estate Market
Led by Ar. Sumit Tayal, Tayal Corp. is not just another real estate developer; it is a collective of thinkers, visionaries, and problem-solvers. Discover how this innovative company is transforming the landscape of Pune's real estate industry.