Luxury Residential Market Remains Strong, Says DLF
India's largest real estate developer, DLF, reports no slowdown in luxury residential market, despite removal of indexation benefits in budget.
Luxury Residential MarketDlfIndia Real EstateSuper Luxury SegmentLuxury PropertiesReal EstateJul 27, 2024
In a recent earnings call, senior executives at DLF cited the company's strong sales performance in the past 15 months, with over ₹22,000 crore worth of sales, as evidence of the market's resilience. According to Aakash Ohri, Joint Managing Director and Chief Business Officer at DLF, the demand for luxury properties is consolidating towards better and good products, and the company's price points are likely to remain stable.
The removal of indexation benefits, which allows taxpayers to adjust the purchase price of an asset for inflation, was a key announcement in the recent budget. However, Finance Minister Nirmala Sitharaman clarified that the change would not apply to assets acquired before April 1, 2001. Ohri believes that this change will not have a major impact on sales, as customers are driven by the desire for well-located, high-quality properties.
DLF's financial performance in the quarter ended June reflects the strength of the luxury residential market. The company reported a 23% year-on-year rise in consolidated net profit to ₹646 crore, driven by robust demand for residential properties. Consolidated revenue rose by 14% to ₹1,730 crore, while sales bookings surged more than three-fold to ₹6,404 crore from ₹2,040 crore a year earlier.
The company's success in the luxury residential market is driven in part by its ability to attract non-resident Indian (NRI) customers, who account for around a quarter of its sales. According to Ohri, DLF's product launches are global in nature, attracting customers from around the world.
Looking ahead, DLF has planned a series of launches in the super luxury and luxury segments, with a combined sales potential of ₹41,000 crore. These launches include super luxury villas in Goa, a new super luxury project in Gurugram, and smaller projects in Chandigarh and Mumbai.
Ohri emphasized that DLF is focused on catering to end-user customers, rather than investors looking for short-term gains. The company has implemented various processes to ensure that customers are genuine end-users, and is selective in its sales approach.
DLF 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 and commercial properties, and has a strong brand reputation in the industry.
DLF is a leading real estate developer in India, with a commitment to delivering world-class properties that meet the needs of discerning customers.
Frequently Asked Questions
What is the current state of the luxury residential market in India?
According to DLF, the luxury residential market in India is showing no signs of slowing down, despite the removal of indexation benefits in the recent budget.
How much sales has DLF reported in the past 15 months?
DLF has reported over ₹22,000 crore worth of sales in the past 15 months.
What is the impact of the removal of indexation benefits on DLF's sales?
According to DLF, the removal of indexation benefits will not have a major impact on sales, as customers are driven by the desire for well-located, high-quality properties.
What is DLF's strategy for catering to end-user customers?
DLF has implemented various processes to ensure that customers are genuine end-users, and is selective in its sales approach to cater to end-user customers.
What are DLF's plans for future launches in the luxury segment?
DLF has planned a series of launches in the super luxury and luxury segments, with a combined sales potential of ₹41,000 crore.
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