DLF bets big on home projects

DLF is planning to develop 27 million sq ft of residential space in the medium term with a revenue potential of Rs 30,000 crore, on the back of higher demand for houses from corporate executives amid the shift to work from home, said a senior company official.The company sold apartments worth Rs 3,084 crore in 2020-21. These included Rs 1,006 crore from the sale of 36 units at its super luxury ‘The Camellias’ project, where demand was strong despite the lockdown.DLF is looking to generate sales of Rs 4,000 crore in FY22 with Rs 1,000 crore every quarter, Aakash Ohri, senior executive director of DLF Home Developers, told ET.The company will develop 7 million sq ft of residential space in 2021-22, one of the highest in recent times, and then up to 6 million sq ft every year, he said.84957216The major development includes a residential project in Central Delhi in a joint venture with Singapore sovereign fund GIC, independent floors in Gurgaon, some projects in Chennai and Chandigarh and some in the luxury segment in Gurgaon.“While The Camellias will continue to contribute close to 35% of the total sales for the next few quarters, we will hold 80 units and will offer it to top executives of multinational companies under the rental model. Not only have the prices of apartments appreciated, the rental value has also increased and we will sell it later on our own terms,” said Ohri.Each unit, costing between Rs 27 crore and Rs 50 crore, is expected to fetch monthly rental of Rs 7-9 lakh.The Camellias, launched in 2014 at Rs 22,500 per sq ft, is currently selling at Rs 38,500 a sq ft.DLF’s net sales bookings totalled Rs 1,014 crore, a more than six-and-a-half times increase from a year earlier, while sales from new launches were Rs 542 crore. According to a presentation to investors and analysts, DLF had reported consistent double-digit sales of Camellias inventory in the last four quarters with sustained sales momentum despite the pandemic. “The demand for larger homes has led to an increase in sales not only in Gurgaon but our inventories in hills are also getting sold. For the people in Gurgaon, homes in Kasauli have become an extension of their current home,” Ohri said.

from Economic Times https://ift.tt/3A0uvvi