DLF to Invest Rs 40,000 Cr in Housing, Commercial Projects

New Delhi, Mar 23 (PTI) DLF Ltd, the country's largest realty firm, will invest around Rs 40,000 crore over the next 4-5 years to develop housing and commercial projects as part of its strategy to expand business amid strong demand for premium properties.

Last week, DLF Group held a meeting with analysts in Gurugram to give them an update on its current business situation and future plan for medium term. It gave a corporate presentation to share the growth strategy of its development (housing) business and annuity business, which is building rent-yielding commercial projects.

As per the presentation which was uploaded on the stock exchanges on Friday, DLF has lined up an investment of around Rs 40,000 crore over the next 4-5 years across its two major business verticals.

The Group will invest around Rs 20,000 crore to complete its residential projects that have already been launched. These ongoing residential projects are mainly in Gurugram.

DLF plans to invest around Rs 20,000 crore in the medium term to develop commercial properties, including office and retail spaces, across Delhi-NCR as well as in Goa and South India.

In the housing segment, DLF informed in the presentation that the "total pending cost to complete all launched projects" is around Rs 20,000 crore.

During the last couple of years, DLF has launched many luxury housing projects in Gurugram, including the ultra-luxury project 'The Dahlias', which has a revenue potential of around Rs 35,000 crore.

These launches have helped the company to achieve a sale bookings of Rs 19,187 crore for the first nine months of 2024-25 fiscal year, beating the annual guidance of Rs 17,000 crore.

In the rental business, DLF plans to invest around Rs 20,000 crore in the medium term (five years) as it aims to expand portfolio of rent-yielding commercial assets to 73 million square feet from current 44 million square feet.

"Significant growth capex being committed for growth," the company said, adding that an incremental capex of around Rs 20,000 crore is planned in the medium term.

These commercial assets will be developed directly by its parent firm DLF Ltd, and also by joint venture firms, including DLF Cyber City Developers Ltd (DCCDL).

In its annuity business, DLF has a strong operational portfolio of around 44 million square feet of rental assets, with high occupancy levels of 93 per cent.

DCCDL, a joint venture between DLF and GIC, holds the bulk of rental assets of the DLF group. DLF has a 67 per cent stake in the JV firm.

"High quality owned land bank available for sustainable long-term growth," it said.

The annuity business includes rental business of DLF, DCCDL and Atrium Place (JV with US-based Hines), besides hospitality business of DLF and services/asset management business of the group.

DLF Group has developed more than 185 real estate projects and an area of more than 352 million square feet since inception. The group has 220 million square feet of development potential across residential and commercial segments.