DLF Group Invests Rs 10,000 Crore in Premium Commercial Properties
DLF Group is set to invest Rs 10,000 crore over the next two years to expand its portfolio of premium office spaces and shopping malls, aiming to boost rental income in key urban hubs.
Dlf GroupCommercial Real EstateRental IncomePremium Office SpacesShopping MallsReal EstateMay 25, 2025
New Delhi, May 25 (PTI) – DLF, a major player in the real estate sector, plans to invest Rs 10,000 crore in the current and next fiscal years to build premium office spaces and shopping malls. Sriram Khattar, Vice Chairman and Managing Director (Rental Business) of DLF, highlighted the company's commitment to leveraging the growing demand for high-quality commercial real estate in India.
DLF Group currently owns 45 million square feet of commercial assets, including 41 million square feet of office space and 4 million square feet of retail space. These assets generate an annual rental income of more than Rs 5,000 crore. According to Khattar, India's Grade A++ commercial real estate has emerged as a global value proposition, offering world-class quality at a more efficient cost.
To capitalize on this opportunity, DLF is expanding its portfolio of rent-yielding commercial assets. The company is constructing office and retail complexes in key urban hubs such as Gurugram, Chennai, Delhi, and Noida. The post-COVID recovery has seen a strong demand from corporates and retailers, prompting DLF to focus on these areas.
DLF's investment plan includes an annual capital expenditure and approvals outlay of approximately Rs 5,000 crore for FY26 and FY27. This investment will be spread across joint ventures with GIC, Hines, and DLF's own balance sheet. The development of premium shopping malls and office spaces is expected to significantly boost rental income in the coming years.
DLF Group holds the bulk 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 sovereign wealth firm GIC holds a 33.33% share. DLF also 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 the Group's operational portfolio, around 43 million square feet are under DCCDL. DLF has a further 28 million square feet under the planning and development stage, with more than 17 million square feet under construction and over 6 million square feet expected to be completed in the current fiscal year.
DLF is currently building two large shopping malls in Gurugram and Noida, as well as office complexes in Gurugram and Chennai. Additionally, the company is developing a data center in Noida. Recently, DCCDL reported an 11% annual growth in office rental income to 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 from Rs 828 crore in the 2023-24 financial year.
On the strong financial and operational performance of DCCDL, Khattar noted that Crisil has enhanced its rating to 'AAA' with a stable outlook. This is a significant achievement, as DCCDL is among the very few non-listed entities in the country to receive an AAA rating. ICRA has also upped DCCDL's rating from AA+ stable outlook to AA+ with a positive outlook. Khattar expressed hope that the ratings would 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 more than 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.
DLF's primary business segments include the development and sale of residential properties (the Development Business) and the development and leasing of commercial and retail properties (the Annuity Business). The company's strategic investments and expansions are expected to further solidify its position in the real estate market and drive sustainable growth.
Frequently Asked Questions
How much is DLF Group investing in commercial properties?
DLF Group is investing Rs 10,000 crore in commercial properties over the next two years.
What are the key urban hubs DLF is focusing on for its commercial expansion?
DLF is focusing on key urban hubs such as Gurugram, Chennai, Delhi, and Noida for its commercial expansion.
What is the current annual rental income of DLF Group from its commercial assets?
DLF Group's current annual rental income from its commercial assets is more than Rs 5,000 crore.
What is the size of DLF Group's commercial asset portfolio?
DLF Group owns 45 million square feet of commercial assets, including 41 million square feet of office space and 4 million square feet of retail space.
What is the development potential of DLF Group across residential and commercial segments?
DLF Group has a development potential of 280 million square feet across residential and commercial segments.
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