DLF expects Rs 700 cr sales revenue from new housing project in Chennai

Realty major DLF on Monday launched a new housing project, comprising 1,500 plots, in Chennai and expects a sales revenue of Rs 700 crore over the next 18 months.

The company will invest around Rs 100 crore to develop infrastructure in this 85 acre new housing project 'Parc Estate', located off the Old Mahabalipuram Road in Chennai.

"We are very excited and buoyant about opportunities and development potential in South India property market," DLF Group Executive Director Aakash Ohri told PTI.

In this 85 acre project, he said the company will develop 1,500 plots, having 2.15 million square feet area, over the next 18 months. It is offering plots in sizes ranging from 600 to 4,000 square feet.

The company will sell 750 plots in the first phase in a price bracket of Rs 20 lakh to Rs 1.25 crore, he added.

"Plot and gold are in huge demand in Chennai," Ohri said.

Asked about sales realisation, he said the company expects sales revenue of Rs 700 crore from this entire project.

DLF will target young IT professionals working in the IT parks close to this project.

Ohri said the company has a significant land bank in Tamil Nadu, Kerala and Telangana and the same will be developed over the next few years.

He said Chennai has emerged as a strategic market for DLF in South India.

This will be the first of many residential launches coming up in the future, he added.

Apart from being an auto manufacturing hub, he said increasing penetration of the IT/ITES industry has led to an influx of a younger population looking to invest in real estate.

P Ramakrishnan, Group Executive Director and Chief Technical Officer, said, "We first analysed the buyer behaviour in Chennai and found that people here prefer buying a piece of land as against other forms of investment."

DLF has clocked record sales bookings of Rs 2,018 crore in the third quarter of this fiscal, up 97 per cent from the year-ago period.

The company's sales bookings during April-December 2021 stood at Rs 4,544 crore.

DLF has developed 153 real estate projects and built an area of about 330 million square feet.

It has 215 million square feet of development potential across residential and commercial segments.

The group has an annuity portfolio of over 35 million square feet.