DLF to develop luxury independent floors in Gurgaon, targets Rs 1700 crore sale

DLF Ltd is targeting a Rs 2000–2500 crore sale every quarter of this financial year with launches scheduled in Panchkula, Gurgaon and Goa markets.

Realty developer will develop 850,000 sq ft of low-rise independent floors at DLF5, Gurugram, with a total revenue potential of Rs 1700 crore, Aakash Ohri, Group Executive Director and Chief Business Officer, DLF Ltd told ET.

The company has focused a lot on low-rise developments and has sold floors worth Rs 3,000 crore in 20 months.

The Grove is a low-rise luxury development, offering 292 residences, with 4 BHK, 4 BHK + entertainment lounge along with a staff room and store in the basement, on plot sizes ranging from 225 – 539 square meters (269 to 650 square yards).

“There is a demand for good builders with good products. This will be a luxury development,” Ohri said.

Situated on Raghavendra Marg, DLF5 has easy connectivity to the Dwarka Expressway and NH-48. With over 50,000 residents already living here, DLF5 has 16 premium, luxury, and super-luxury residential communities.

“The Grove will introduce residents to the pleasures and privacy of living in expansive homes in low-rise buildings where the interior designs blend creative artistry with the latest technological advances. The privileges of living in DLF5 are obvious,” Ohri said.

“DLF’s vision of establishing a world-class city on par with the best in the world has come to fruition with DLF5. In the process, we have created immense, lasting value for all stakeholders,” Ohri said.

The Grove has been designed by the leading architectural firm, ARCOP. The landscaping and refreshing terrace garden have been designed by landscape architecture and urban design firm MPFP of New York. 5-tier security protocols with provisions of fire and gas leakage safety beyond the statutory requirements, will keep the residents safe and protected at all times.

“Properties in DLF5 have shown excellent appreciation in value as well as rentals. This neighborhood has beaten all others when it comes to value creation, making it a highly attractive investment option. The Grove will undoubtedly enjoy this immense advantage,” Ohri said.

DLF Ltd is targeting a Rs 2000–2500 crore sale every quarter of this financial year with launches scheduled in Panchkula Gurgaon and Goa markets.

The company, which has already completed sales of Rs 3,000 crore from low-rise independent floors, is betting big on luxury sales and is targeting another Rs 2,500 crore from low-rise developments in the Panchkula and Gurgaon markets.

DLF has planned 35 million sq. ft. of new products in the medium term, with a revenue potential of Rs. 47,000 crores, of which 7.6 million sq. ft. will be launched in 2022–23. Almost 50% of it will be in the premium luxury segment. DLF will develop 424 luxury independent floors at a 175-acre site, The Valley Gardens, in Panchkula, Haryana.

What Makes Gurugram Such A Popular Destination For Real Estate Investors?

Gurugram has long been a popular property investment location in the Delhi-NCR region, and demand has increased in recent years. Since the country’s economy was opened to international investment, the city demand has increased. The millennium city has grown into a prominent residential and industrial hub, enticing purchasers from all over the world over time, thanks to its high per ca-pita income, great connectivity, and premium infrastructure.

It is always on the radar of high-value investors as well as millennial’s who want to purchase a property in this global metropolis, thanks to its modern appeal and grandeur combined with sustainability. As a result, the residential real estate market in this city is quickly becoming a hotspot for not only the ultra-rich but also the fast-rising millennial’s, accelerating the creation of all types of homes.

Let’s have a look on some major points that has increased the demand of the city.

· Better investment opportunities and broader choices

· Amenities, accessibility, and sound capabilities of a modern new generation

· It is always on the radar of high-value investors as well as millennial who want to purchase a property in this global metropolis

· Most NRI respondents intend to buy property in India for personal use, while other intend to buy for investment

· Guguram has a high demand since it is home to over 250 Fortune 500 businesses and has a strong entrepreneurial culture

· One of India’s main IT centers

· There are purchasers from all over the world

Furthermore, the pandemic has emphasized the importance of comfort and elegance in residential real estate, which is a positive development. The good trends and favorable atmosphere will assist the Gurugram Real Estate market the most in the future.

Real estate sees spurt in demand, fresh flow of funds in 2022: CBRE-CII Report

This upward growth was primarily caused due to rising demand from office, retail and residential spaces, as the government reforms continued to encourage the overall Real Estate sector.

The real estate sector has witnessed a steady upward momentum through the year 2022, stated the CBRE-CII joint report named ‘Indian Realty – Charting the growth roadmap for 2022′.

This upward growth was primarily on the back of rising demand from office, retail and residential spaces as the government reforms continued to encourage the overall realty sector.

A few key highlights of this growth has been recorded as follows:

1. With the opening up of markets in the country, the demand for office spaces picked up pace. This buoyancy was majorly witnessed in Q2 2022 which witnessed record leasing activity – space take-up grew by 220% Y-o-Y in Q2 2022 to 18.2 million sq. ft. Overall, in H1 2022, 29.5 million sq. ft. of leasing activity was recorded, up 157% Y-o-Y. Despite this, the hybrid mode of work remains the most favored workplace policy.

2. The real estate investments went through a robust recovery in India with its space growing by 4% Y-o-Y in H1 2022 to USD 3.4 billion. The office sector dominated the investment activity during this phase where they occupied a share of 48%, followed by developmental land/sites that occupied 33% of the same. There was a significant improvement within the retail sector which held 13% of the total inflow s in H1 2022 compared with 1% in the entire 2021

3. Retail, as mentioned is going through vigorous recovery due to the unleashing of the so-long bottled-up demand and the ever-increasing demand for e-commerce. Y-o-Y growth of 166% caused leasing activity to touch 1.54 million sq. ft. in H1 2022. This includes the blend of the industry with retail by many stores, and the need for spaces by many home-grown D2C brands for a physical presence, among many others.

4. Multiple property prices are seen rising in H1 2022, due to the unprecedented launch momentum in the residential sector. This rise in prices is prevalent across most micro-markets and segments due to record sales and developers’ decision to pass on rising construction costs to buyers. But, going forward, this appreciation of prices could be selective and the sale of new launches may reach a decadal peak in 2022 and cross the 200,000-mark.

5. The industrial and logistics sector expects an overall leasing activity in 2022 to remain range-bound at about 28-32 million sq. ft., a growth of up to 12% on an annual basis. This may be a result of the continued expansion of 3PL and FMCG and other manufacturing players taking up space, ones that are the backdrop of every macroeconomic recovery. Given that supply chain firms have started to mellow in the recent past, supply addition is expected to improve in H2 2022 and about 25-28 million sq. ft. of new warehouses to become operational during the entire year – a growth of up to 12% on an annual basis.

Mr. Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE, spoke on the changing dynamics. “The real estate sector in India performed well in H1 2022 amid the evolving market dynamics. As the economic recovery continues to gain momentum, we expect a further boost to the leasing activity across the sectors. We estimate alternative segments such as flexible space will pave the way for innovative new-age RE solutions and supplement economic growth. Robust policy and regulatory environment will encourage overall infrastructure growth in the long term.”

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