Luxury homes to prime rentals: DLF's ₹33,500 cr expansion plan decoded

DLF's sales bookings stood at a record Rs 21,223 crore in the last fiscal as against Rs 14,778 crore in the 2023-24.

India’s largest real estate developer, DLF Ltd, will pump in ₹23,500 crore to complete residential projects already launched across Delhi-NCR and Mumbai. 

 

An investor presentation revealed that the total pending cost for completing these projects stands at ₹23,500 crore. To meet this commitment, DLF has a cash balance of ₹10,429 crore, including ₹7,782 crore parked in Real Estate Regulatory Authority (RERA) escrow accounts, along with customer receivables of ₹37,220 crore from units already sold.

 

In a recent analyst call, DLF Group CFO said the company spent around ₹750 crore on construction in the first quarter of FY25, with a marginal increase expected in subsequent quarters. Post-pandemic, DLF has launched several marquee residential projects in Delhi-NCR, Mumbai, and the tri-city of Chandigarh.

 

Blockbuster Sales in New Launches

In Q2 FY25, DLF, along with Trident Realty, launched a Mumbai project of 416 flats, selling out completely for ₹2,300 crore. 

 

In Q1, it launched and sold all 1,164 luxury apartments in DLF Privana North in Gurugram for about ₹11,000 crore. 

 

This follows the sell-out of Privana West and Privana South last year, which together fetched around ₹12,800 crore.

 

These high-value launches have powered DLF’s record-breaking sales bookings of ₹21,223 crore in FY24, up from ₹14,778 crore in FY23. For FY25, the company has guided sales bookings of ₹20,000–₹22,000 crore and has already achieved ₹11,425 crore in Q1 alone.

 

 DLF is making big bets on its rental business

The real estate major plans to pump in ₹5,000 crore each in FY26 and FY27 as capital expenditure, targeting rental earnings of around ₹6,700 crore by the close of FY26. According to Sriram Khattar, Vice Chairman and MD (Rental Business), this growth will be powered by new office and retail projects expected to start generating rentals within the current fiscal. 

 

Of the projected earnings, ₹5,900 crore will come from DCCDL (DLF Cyber City Developers) and about ₹750 crore from DLF and its joint venture Atrium Place, developed with Hines. DLF’s rental portfolio currently spans 43–44 million sq ft across office parks, IT/ITeS SEZs, retail spaces, and hospitality assets.

 

Massive Development Pipeline

DLF’s portfolio spans over 185 completed projects covering more than 352 million sq ft, alongside a commercial and retail leasing (annuity) portfolio of 46 million sq ft. With 280 million sq ft of future development potential, DLF remains well-positioned to ride the current wave of housing demand, particularly in the premium segment.

 

Analysts say the combination of strong pre-sales, healthy cash reserves, and a fully-funded execution plan puts DLF in a solid position to maintain its growth momentum in India’s resurging real estate market. 

JM Financial Research has a “Buy” rating with a sum-of-the-parts valuation of ₹1,000.  “Aided by the rampup in new assets and a strong development pipeline, we expect rental income to grow at 11 per cent annually over FY25-FY28. DLF, with its steady annuity cash flows and fully paid-up land banks, remains extremely well-placed to scale up across segments and newer geographies," said analysts at the brokerage firm.

 

Pipeline & Completions

 

28 million sq ft under planning and development in the rental segment.

 

5 million sq ft scheduled for completion in FY26.

 

Upcoming Rental Streams

 

Rentals from Downtown Gurugram and Downtown 3 Chennai to start from Sept–Oct 2025; occupancy certificates already received.

 

Atrium Place almost fully leased — only 150,000 sq ft remaining out of 3.1 million sq ft; expected to be fully committed by month-end.

 

First three blocks (2.1 million sq ft) at Atrium Place to get OC by month-end; 3 tenants already started fit-outs.

 

Rentals from Atrium Place expected from Dec 2025–Jan 2026.

 

Residential Performance & Pipeline

 

Q1 FY25 new residential sales bookings at ₹11,425 crore, up 78% YoY, driven by DLF Privana North launch in Gurugram.

 

Goa launch awaiting approvals; next phase of Dahlias planned for March–April 2026, featuring a new experience center.

 

Mumbai: Phase one over 5.18 acres completed; next phase to start next year due to regulatory approvals in Maharashtra.

 

Rental Growth Outlook

 

Framework in place to maintain mid-teens annual rental growth.

 

Existing portfolio showing 7%–8.5% annual rental income growth.

 

Full-year rental growth projected at ~15%, with quarterly variations based on asset handovers and rental commencements.