DLF aims for over 10% growth in residential biz in FY23

Leading real estate developer DLF Ltd. has set an ambitious target of expanding its residential bookings by over 10 per cent in the current financial year, backed by strong demand for homes. It also aims to double its retail portfolio in the next 4-5 years, the company revealed in its annual report.

According to Rajiv Singh, Chairman, DLF, the Gurugram-headquartered realty major is witnessing a significant tailwind for the residential demand. “Housing segment continues to witness strong demand well supported by tailwinds from the fundamental demand drivers. Structural recovery in housing demand should continue with sustained demand momentum led by increasing urbanisation, improving affordability, positive consumer sentiments and growing aspirational needs,” he said in the annual report for FY22.

Singh said consolidation amongst larger and credible brands continues to be a key trend in the housing segment, primarily driven by increasing consumer confidence towards such brands, significantly improved balance sheets and a strong ability to provide high-quality, safe and sustainable ecosystems.

As per Motilal Oswal’s analysis, last year DLF’s pre-sales increased 136 per cent to Rs 7,200 crore driven by strong response to Camellias and new products (especially independent floors). It estimates that DLF’s identified “launch pipeline will help it sustain the momentum”. In FY23, the realtor is expected to grow its pre-sales to Rs 8,000 crore, primarily driven by a 7.6 million square feet launch which includes a new phase at independent floors and One Mid-Town. “Outside of NCR company will also focus on markets like Goa (retail and a residential project) along with launches in Chennai and Tri-city, Chandigarh,” it noted.

In the retail business that was hit hard during the three COVID waves between early 2020 and early 2022, a sharp rebound has been witnessed. “Retail business exhibited strong rebound during the fiscal with marked improvement in the footfalls and consumption across the portfolio supported by strong recovery in the luxury segment and growth of international brands,” said Singh, adding, “Given the recovery across the retail segment and consumption trends in our country, we have also initiated development of the next line of retail destinations across multiple geographies. We hope to double our retail presence in the next 4-5 years with these additions.”

According to analysts, DLF’s low cost fully paid land bank - some 186 million square feet - enables it to generate healthy margins and a rapid ramp-up even without inorganic growth (acquisitions). This also helps it in launching products at diverse price points addressing multiple target segments.