DLF eyes early launches on booming demand

Backed by a good demand in the super luxury and luxury segments, 30-year-old real estate major, DLF is planning to pre-pone some of its high ticket launches to Q4 of this fiscal, at least a month ahead of its FY25 schedule.

According to Ashok Tyagi, MD and Whole Time Director, DLF, the company is working on getting the requisite clearances so that it can advance the launch of at least one major project.

Also Read : DLF buys Gurugram land parcel for ₹825 crore.

“We are trying to see if we can advance the launch of one major project, which is currently stated for Q1 (FY25) into Q4 (Jan – Mar). Obviously, the market is there and the customer pipeline is there. I think it’s a question of getting the approval process done by mid-March for it to launch,” he said during the post earningscall.

Margins will continue to be in 45-50 per cent ranges for new launches.

“Overall, I think we should be ballparking in the pivot of 45 – 50 per cent on the overall margin for new launches,” he added.

DLF’s top-brass in previous interactions with businessline had mentioned that “there is tremendous potential, both from the point of view of luxury and super luxury across the board, across geographies”.

The company will initiate its launch from Gurugram and gradually move into other markets like Mumbai and Chennai.

Launches lined up in In FY25 include 10 million square feet (msf) projects. These will include a super-luxury project in DLF Phase V and the Privana South Phase 2 project in Gurugram; luxury projects in Chennai and Goa; Phase I of the Mumbai project; and projects in Panchkula.

The Mumbai project is a joint development agreement model which is propelled by the SRA (slum rehabilitation authority).

Real estate brokerage firm PropTiger in a recent report said, positive buyer sentiment is propelling a new wave of launches. There was a notable upswing in property launches, indicative of robust demand and elevated consumer confidence. Majority of units launched in 2023 was in the ₹1 crore to ₹3 crore range, comprising 31 percent of the overall supply in the top-eight cities.

In 2023, a total of 5,17,071 units were launched, by developers across top eight cities, a 20 per cent increase y-o-y. On the other hand, sales increased 33 per cent y-o-y to 4,10,000 units (approximately).

Sales Guidance

Meanwhile, DLF, has raised the pre-sales bar higher for FY25. It has already surpassed its pre-sales (bookings) target of ₹13,000 crore for FY24 within nine months of the year (and clocked a target of ₹13,316 crore).

The company is eyeing what it calls a moderate 15 per cent pre-sales growth in FY25.

“I mean depending on how the entire launch pipeline pans out, we will be looking at a number which is at least a moderate increase from what we achieved in FY24….but I clearly look at a number which is hopefully a 15 – 15-plus number at a very moderate level for next year,” Tyagi said.

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In the December quarter results (Q3FY24), DLF recorded its highest quarterly bookings of ₹9,047 crore, helped by three new projects totalling over five msf across multiple segments.In the commercial segment, after the recent relaxation in SEZ (special economic zone) rules, which allow for floor-wise conversion to non-SEZ buildings, DLF has already applied for conversion of 1.1 msf of space to non-SEZ.The approval for conversion is expected by March or April, post which the company will start marketing the space.

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