DLF completes Phase-1 sale of Mumbai project, secures Rs 2,300 crore

DLF has announced the successful sale of the first phase of its Mumbai project, generating pre-sales revenue of Rs 2,300 crore. This marks a significant milestone for DLF, which has entered the Mumbai real estate market through a partnership with Trident Realty. In July 2023, DLF secured a 51% stake in the special purpose vehicle (SPV) set to develop approximately 3.5 million square feet in Andheri West, Mumbai. The first phase of this project involves the development of around 900,000 square feet as part of a slum rehabilitation initiative, with additional land expected to become available gradually. This strategic move underscores DLF's commitment to expanding its footprint in key urban areas, leveraging its expertise in large-scale developments.

The Westpark development, spread over 5.18 acres as part of a larger 10-acre master plan, includes plans for eight towers. The initial phase introduced four towers, each with 37 storeys, offering a total of 416 residences. These units include a variety of spacious 3 and 4 BHK residences ranging from 1,125 to 2,500 square feet, along with a limited number of exclusive penthouses. A significant 20% of the buyers hail from the non-resident Indian (NRI) community, highlighting the project's appeal to a global audience. DLF's NRI sales rose to $421 million in the last fiscal year, reflecting a growing interest among overseas investors.

Aakash Ohri, Joint Managing Director and Chief Business Officer at DLF Homes, stated, "We had initially opened two of the four towers for sale but after getting the overwhelming response, we decided to sell the balance inventory as well. We managed to sell the entire phase in five days." This rapid sale is part of DLF's strategy to exceed its new sales bookings, which reached Rs 21,223 crore for FY25, surpassing its earlier guidance of Rs 17,000-18,000 crore. DLF reported a net profit of Rs 1,268 crore for the March quarter, a 37% increase from the previous year, showcasing its strong market position.

Over the fiscal year, DLF's consolidated net profit saw a 59% increase, rising to Rs 4,357 crore, while consolidated revenue escalated to Rs 8,996 crore. This robust performance demonstrates DLF's capability to thrive amid concerns of a general industry decline in property sales following a two-year bull run. The company had outlined plans to launch 37 million square feet of new projects from FY25 onwards, with a total sales potential of Rs 114,500 crore. These ambitious plans reflect DLF's confidence in its ability to capture market demand and drive growth.

The real estate sector has been witnessing variable trends, with DLF's performance standing out in contrast to some industry reports indicating a downturn. Competitors like Godrej Properties and Oberoi Realty continue to vie for market share in Mumbai, both of which have been focusing on expanding their luxury residential and commercial portfolios. DLF's strategic expansion and successful sales initiatives place it in a competitive position within this dynamic market environment, underscoring its resilience and adaptability in the face of changing market conditions.