Luxury Real Estate Defies Odds: DLF Sees No Slowdown in Demand
India's largest real estate developer, DLF, reports no slowdown in luxury residential market, despite removal of indexation benefits in budget.
Luxury Real EstateDlfIndiaResidential MarketBudgetReal Estate NewsJul 27, 2024
According to Aakash Ohri, joint managing director and chief business officer, DLF, the company has seen significant sales in the past 15 months, with approximately ₹22,000 crore worth of sales. Ohri attributed this to the latent demand for quality products and the company's delivery schedule. He does not foresee any slowdown in the market, citing the company's price points and the demand for better products.
The finance minister's decision to scrap indexation benefits on property and lower long-term capital gains tax to 12.5% from 20% had raised concerns about the impact on the luxury residential market. However, Ohri believes that DLF's sales will not be significantly affected, given the company's focus on delivering quality products that meet the demands of its customers.
DLF's financial performance in the first quarter of the fiscal year supports Ohri's optimism. The company recorded a 23% year-on-year rise in consolidated net profit, with revenue increasing by 14% to ₹1,730 crore. Sales bookings surged more than three-fold to ₹6,404 crore from ₹2,040 crore a year earlier.
The company's investor presentation reveals plans to launch 5.4 million sq ft of super luxury projects this financial year, with a sales potential of ₹27,500 crore. Additionally, DLF plans to launch 6.8 million sq ft of luxury projects with a sales potential of ₹13,500 crore. The company is also launching super luxury villas in Goa this quarter and a new super luxury project in Gurugram, with apartments priced at ₹60 crore and above.
In an effort to ensure that customers are end-users and not investors looking for short-term gains, DLF is implementing various processes. Ohri emphasized the company's focus on retail customers, stating that DLF is selective in its sales approach.
In the coming months, DLF is set to launch several projects, including Mumbai projects, small project launches in Chandigarh, and commercial launches. With a strong pipeline of launches and robust demand, DLF is confident about its position in the luxury residential market.
Information
DLF is India's largest real estate developer, with a presence in over 15 states and 24 cities. The company has a diverse portfolio of residential, commercial, and retail projects.
DLF is a leading Indian real estate company that has been at the forefront of the country's real estate development. With a commitment to quality and customer satisfaction, DLF has established itself as a trusted brand in the industry.
Frequently Asked Questions
Will the removal of indexation benefits affect DLF's sales?
According to DLF's senior executives, the removal of indexation benefits will not have a significant impact on the company's sales.
What is DLF's sales performance in the first quarter of the fiscal year?
DLF recorded a 23% year-on-year rise in consolidated net profit, with revenue increasing by 14% to ₹1,730 crore. Sales bookings surged more than three-fold to ₹6,404 crore from ₹2,040 crore a year earlier.
What are DLF's plans for new launches?
DLF plans to launch 5.4 million sq ft of super luxury projects this financial year, with a sales potential of ₹27,500 crore. Additionally, the company plans to launch 6.8 million sq ft of luxury projects with a sales potential of ₹13,500 crore.
Who are DLF's target customers?
DLF focuses on retail customers, and the company is selective in its sales approach to ensure that customers are end-users and not investors looking for short-term gains.
What is DLF's strategy to ensure customer satisfaction?
DLF is committed to delivering quality products that meet the demands of its customers. The company is implementing various processes to ensure that customers are satisfied with their purchases.
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