ET has recently reported about a Rs 100-crore deal for a 10,000 square feet apartment at The Camellias by DLF in the Millennium City’s Golf Course Road, which has set a new benchmark for luxury housing pricing.
“The demand for better and bigger homes is there today. The demand is for more spacious homes and therefore the price is a result of that,” said Aakash Ohri, joint managing director and chief business officer, DLF Ltd.
DLF reported a second-quarter net profit of Rs 629 crore, an increase of 29%, as it continues to see sustained demand momentum across all segments and kept a positive outlook on the housing cycle.
New sales bookings for the quarter stood at Rs 2,228 crore with its new products and existing inventory continuing to receive strong customer interest.
“These numbers (guidance) will undergo change as we get closer to the launch. We had an internal debate of whether we should change these numbers now but as a company we are conservative. But obviously these numbers will undergo a positive change as we get closer to launch,” said managing director Ashok Kumar Tyagi during the Q2 investors call.DLF has given guidance of launching projects worth Rs 19,710 crore in FY 23-24 of which Rs 12,400 crore will be in the luxury segment, Rs 6,000 crore will be in the premium segment and the rest in the commercial segment.“We have given this guidance towards the end of last fiscal year and a lot has changed in the last six months. And therefore, these numbers will undergo a change and there is a potential upside to this number,” said Vivek Anand, group chief financial officer of DLF Ltd.
On the continuous increase in prices of luxury houses, with The Camellias almost trading at Rs 1,00,000 per sq ft, at par with Mumbai and Lutyens Delhi, DLF said prices going up is result of latent demand.
“There is a demand for better products and prices that are going up are for products which are in a certain zone. Buying residential real estate today has become a priority for people. A lot of people who are on the fence, who would always live on rentals have also jumped into the fray. The rise in price points today are a reflection of a certain mindset which is changing on grounds,” Ohri said.
DLf is expected to launch sector 77 project in Q3 FY 24 while the luxury offering at DLF V is expected to be launched in Q4 FY 24 or Q1 FY25.
DLF is also expected to launch Mumbai’s Andheri project by June 2024 while another project in Mumbai is caught in legal tangle.
“Andheri project is on track and slum rehab is making very good progress. We stay on track for a potential launch in June 2024. The Tulsiwadi project is in a significant legal mess and it’s just gone further deeper in the mess,” said Tyagi.
Post dividend payout of Rs 990 crore, DLF achieved a net cash position of Rs 142 crore at the end of the second quarter.
“We have delivered on our commitment to achieving a net debt zero position. We will continue to further strengthen our balance sheet through consistent cash generation,” said DLF.