DLF sets sights on strong residential, commercial pipeline in medium term

DLF plans to achieve ambitious targets with a strong launch pipeline, aiming for ₹20,000-22,000 crore in sales in FY26, driven by robust demand in both residential and commercial sectors

Real estate major DLF on Sunday said it is banking on a strong launch pipeline of housing as well as commercial projects and is on track to achieve its targets.

 

In a letter to shareholders in its latest annual report, DLF Chairman Rajiv Singh said that this is on the back of robust performance by the firm in both residential as well as rental.

 

It was driven by exceptional performance and timely execution.

 

In its residential business, DLF reported record sales bookings or pre-sales of ₹21,223 crore in 2024-25 (FY25), a 44 per cent increase from ₹14,778 crore in FY23.

 

The company has set a target of selling housing properties worth ₹20,000-22,000 crore during 2025-26, almost in line with the FY25 sales.

 

According to DLF’s annual report, this business has an identified pipeline of new products with a total sales potential of over ₹1.1 trillion. 

 

“Out of this identified pipeline, the company has launched projects totalling 7.5 million square feet (msf) with sales potential of around ₹40,600 crore in FY25. It recorded new sales bookings of around ₹19,344 crore from these new launches,” it added.

 

The company had earlier informed about its plans to launch housing properties worth over ₹17,000 crore in FY26. It would capitalise on the strong demand for luxury homes.

 

DLF is also anticipating that its luxury and super-luxury products, coupled with a low-cost land bank, will continue delivering consistent margin accretion and healthy cash flow generation.

 

For the annuity business, which includes leasing of commercial spaces on rent, the company said its operational rental portfolio stood at around 45 msf with occupancy of 94 per cent in FY25.

 

“Pre-leasing trends have remained strong and with sustained demand momentum across these products and geographies, the company expects that its rental revenue should surpass ₹10,000 crore in the medium term,” DLF said in its annual report.

 

Singh said that DLF will continue to invest in capital expenditure for new build-outs in Gurugram, Chennai, Delhi and Goa.

 

He added that new buildings in Phase 1 of Downtown Gurugram and Chennai are completed, with three retail properties worth 1.4 msf set to open to the public in FY26.

 

On the backdrop of anticipated office demand momentum, the company has accelerated its capex programme. 

 

It has identified a strong pipeline of new products, totalling 20 msf across gateway cities, including Gurugram, Chennai, Hyderabad and Noida.

 

Similarly, the company added that it anticipates continued momentum across the retail business. It has embarked on creating new retail destinations across micro markets in Gurugram, Delhi and Goa.

 

In FY25, the DLF chairman saw a 34 per cent rise in his remuneration to ₹36.65 crore against ₹27.30 crore in the previous financial year. 

 

DLF group, which is India’s largest real estate player by market capitalisation has 280 msf of development potential across residential and commercial segments, including current projects under execution and the identified pipeline.