DLF Plans Luxury Project Launches and Awaits Rental Income from Malls

Real estate major DLF is gearing up for a series of luxury-segment launches over the next eighteen months. Aakash Ohri, Joint Managing Director and Chief Business Officer at DLF Home Developers, announced this during the earnings call for the September quarter of 2025-26 (Q2 FY26).

The firm’s pipeline includes several ultra-premium projects, with launches scheduled in Goa, Arbour Senior Living, Hamilton Court Phase II, and The Westpark Phase II in Mumbai. The Goa project is expected to be launched in Q3 FY26, while the other projects are slated for launch in FY27. Ohri also mentioned that DLF will consider additional rounds in Privana and its investments in Panchkula in the next financial year.

“Right now, our main focus is making sure that our construction capabilities are strengthened so that customer commitments are on track,” Ohri added. Despite a 15 per cent drop in consolidated net profit for the September quarter, attributed to high debt repayment, DLF reported strong new sales bookings and operational performance, reflecting robust demand in India’s premium housing market.

Regarding potential future investments in Noida, Ohri expressed interest but noted that the company will wait for suitable opportunities. DLF’s annuity business, which includes rent-yielding office and retail assets, continues to show improvement, with occupancy holding steady at 94 per cent.

According to the company’s investor presentation, DLF has about 25 million square feet (msf) under planning and development in the segment, including 2.7 msf scheduled for completion in FY26. Rental income from DLF’s three retail assets—Midtown Plaza in Delhi, Summit Plaza in Gurugram, and DLF Promenade in Goa—is expected to start from Q4 of this financial year and will accumulate towards Q2 FY27.

“Tenant bidders are progressing fast, and we expect the rental income to start coming in from December. But for all three put together, the rental income will come by about April next year,” said Sriram Khattar, Vice-Chairman and Managing Director at DLF. The occupancy certificate (OC) for Midtown Plaza has already been received, and OCs for the two other assets are expected soon.

“After the OC comes, it typically takes an average of four to five months for tenants to complete their fit-outs before the income starts coming in. On a cumulative basis, for the three malls, the rental income should be around ₹450–460 crore,” Khattar added.

For future projects, DLF is identifying potential assets it can take on once these three malls are commissioned. “While our five-year projection does lay out some of those assets, I think serious work on those could be done by the early part of next year,” an official said.

Khattar also provided updates on other major projects. Construction at Downtown Gurugram is in full swing, with the project slated to be completed by mid-2028. “As for Downtown Chennai, construction of Towers 4 and 5 is going on, with the project expected to be completed by the beginning of 2028,” he said.

On Friday, DLF’s shares closed 2.64 per cent lower at ₹756.20 apiece on the bourses.