Looking to monetise existing land banks: DLF Home Developers' Aakash Ohri

Ohri said the group would focus on premium and luxury segments but noted that the buyer demographic was also changing

Aakash Ohri, joint managing director and chief business officer at DLF Home Developers, says the group will monetise its existing land banks before pursuing new acquisitions. This comes even as the largest realty company by market cap prepares to launch The Dahlias project by year-end and enters the Mumbai market. In an interaction with Gulveen Aulakh in New Delhi, he also said the group would focus on premium and luxury segments but noted that the buyer demographic was also changing. Edited excerpts:

 

What is DLF’s outlook for FY26? What is the timeline for The Dahlias project?

 

Privana North is coming up. For The Dahlias, we have actually done three years of our target. So, the second phase will be timed strategically. We will do the main launch around December. We have committed revenues of ~20,000 crore to ~25,000 crore a year in the dev-co, and we will stick to it. Investments will be subject to the kind of projects we are doing.

 

Is this the right time to enter the Mumbai market? Are there any potential challenges?

 

There is never a right or wrong time for real estate. The positive trend is that people are increasingly looking to buy homes rather than lease, own a second home as well. Andheri West is a great location. The Mumbai project is a joint venture with Trident, and the city has a different sales process from what we are used to, but there is definitely heightened interest compared to anything else.

 

Would DLF look at redevelopment opportunities in the Mumbai/MMR region? 

 

Redevelopment opportunities in Mumbai are substantial, driven by limited availability of greenfield land and rising housing demand. Currently, our full focus is on our market entry project in Andheri West. 

 

Is DLF open to acquisitions, including through insolvency processes?

 

DLF is open to all opportunities but we will not be in a “rat race”. We don’t have to prove ourselves anymore because the primary focus is on serving customers, making quality products, ensuring timely delivery and responsible pricing.

 

Are you looking at geographies beyond your current markets for acquisitions?

 

For us, margins are critical and we can’t afford to compromise on those because our cost of operations are humongous. But, wherever there is an opportunity, (we can explore). North will continue to be our focus area.

 

Anything that you are actively looking at right now?

 

First, we will try and monetise our own lands, and then move to other areas. We operate in the premium, luxury, and super-luxury segments. The company prefers to stay in these segments because its operating modules, expenses, and compliance costs are high, and we do not cut corners.

 

What is your view on the market consolidation and the trend towards branded players?

 

Consolidation is happening due to the past practices of some developers. Customers are now more cautious. Now, in the post-Rera (Real Estate (Regulation and Development) Act) time, there is tremendous accountability, and the government is reasonably strict, so customers have faith in the system. It is not going to be a free run for unscrupulous (developers).

 

Is affordable housing no longer a focus? How has the concept of affordability changed?

 

Since Covid, residential real estate has become a priority for many, so the concept of affordability has changed. People are willing to allocate more resources towards home ownership. There is a trend of buyers, including those in Tier-II cities, wanting to upgrade their lifestyles and not compromise on features, often pushing for larger homes.

 

Will this be a long-term trend since it is a typically cyclical business?

 

While real estate can be cyclical, the base of homebuyers has significantly expanded. The average age of investors has dropped, with a new base of buyers aged 28-30 emerging. This has expanded the base and, therefore, the volatility will be less. I am also seeing a very early trend that real estate investment is becoming less tied to one's own geography; people are willing to invest in good properties in other cities as an asset class for investment, partly due to the phenomenal returns real estate has offered.

 

Is inventory piling up in the luxury market?

 

After Rera, it won’t be a free run anymore (where inventory piles up uncontrollably), people won’t take that chance. 

 

Developers are generally taking more calculated risks. 

 

It is okay for people to come in with inventory, for consumers to have more products and choices in the market.