Luxury Real Estate Market Remains Unfazed by Indexation Changes, Says DLF
India's top real estate developer, DLF, reports no slowdown in luxury residential market despite recent budget changes, with plans to launch new high-end projects.
Luxury Real EstateDlfReal Estate MarketIndexation ChangesSuper Luxury ProjectsReal Estate NewsJul 28, 2024
According to Aakash Ohri, joint managing director and chief business officer, DLF, the demand for luxury residential properties remains strong, with the company having done about Rs 22,000 crore of sales in the past 15 months. Ohri attributed this to the consolidation of demand towards better and high-quality products, as well as the latent demand for DLF products and its delivery schedule. As a result, the company's price points are expected to remain stable, with no signs of a slowdown.
The removal of indexation benefits on property and the lowering of long-term capital gains tax to 12.5% from 20% in the budget were seen as significant changes, but DLF's financial performance suggests that these changes have had little impact on the luxury residential market. In fact, DLF reported a 23% year-on-year increase in consolidated net profit for the fiscal first quarter, amounting to Rs 646 crore, driven by sustained robust demand for residential properties.
The company's investor presentation indicates plans to launch 5.4 million sq ft in the super-luxury segment this financial year, with a sales potential of Rs 27,500 crore. Additionally, 6.8 million sq ft will be launched in the luxury segment, with a sales potential of Rs 13,500 crore. DLF derives about a quarter of its sales from non-resident Indians, and its focus on ensuring that customers are end-users rather than investors seeking short-term gains has helped the company navigate the changing regulatory landscape.
In the upcoming quarter, DLF plans to introduce super luxury villas in Goa and a new super luxury project in Gurugram, featuring apartments priced at Rs 60 crore and above. The company is also awaiting government approvals for its Mumbai projects, expected to launch by December or January. Further launches include small projects in Chandigarh, commercial launches, and a new project in the Rs 7-8 crore category in Gurugram. With its focus on high-end products and end-users, DLF is confident of maintaining its market leadership in the luxury residential segment.
Information
DLF Limited is India's largest real estate developer, with a presence in over 15 states and 24 cities. The company has a track record of delivering high-quality residential, commercial, and retail projects, and has a customer base of over 10,000 families.
DLF Limited is a leading real estate developer in India, with a commitment to delivering high-quality products and services to its customers. The company's focus on innovation, sustainability, and customer satisfaction has earned it a reputation as a trusted and reliable developer in the Indian real estate market.
Frequently Asked Questions
What is the impact of indexation changes on DLF's sales?
According to DLF, the removal of indexation benefits has had no significant impact on its sales, with the company reporting a 23% year-on-year increase in consolidated net profit for the fiscal first quarter.
What is DLF's strategy for maintaining its market leadership in the luxury residential segment?
DLF's focus on high-end products and end-users, rather than investors seeking short-term gains, has helped the company maintain its market leadership in the luxury residential segment.
What are DLF's plans for new project launches in the upcoming quarter?
DLF plans to introduce super luxury villas in Goa and a new super luxury project in Gurugram, featuring apartments priced at Rs 60 crore and above, as well as small projects in Chandigarh, commercial launches, and a new project in the Rs 7-8 crore category in Gurugram.
How does DLF ensure that its customers are end-users rather than investors?
DLF has implemented various processes to ensure that its customers are end-users, including monitoring buyer profiles and payment patterns.
What is the sales potential of DLF's upcoming super-luxury and luxury project launches?
The sales potential of DLF's upcoming super-luxury project launches is Rs 27,500 crore, while the sales potential of its luxury project launches is Rs 13,500 crore.
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