Realty major DLF will invest around Rs 3,500 crore over the next four years to construct a new luxury housing project in Gurugram as its seeks to tap strong demand for residential properties.
DLF will develop a new group housing project 'The Arbour', which is spread over 25 acre and comprises 5 towers with a total of 1,137 premium apartments.
DLF, the country's largest real estate firm in terms of market cap, sold all 1,137 units, each costing Rs 7 crore and above, for over Rs 8,000 crore within 3 days (February 15-17).
In an interview with PTI, DLF Ltd CEO Ashok Tyagi said, "We will develop around 4.5 lakh square feet area in this new project."
Asked about the construction cost, he said it will be between Rs 7,000-8,000 per square feet given the amenities promised in this luxury project.
Tyagi said the overall construction cost has shot up due to increase in prices of key materials like cement and steel. The total construction cost will be around Rs 3,500 crore over the next four years, DLF group executive director Aakash Ohri said.
DLF sold apartments at Rs 18,000 per square feet in this project, which is located in Sector 63 on Golf Course Extension Road. Ohri noted that the rate quoted by DLF was higher than the existing market price of Rs 14,000-16,000 per square feet in this area.
DLF will build 1,137 identical 4 BHK apartments, each of 3,950 square feet size, in the new project. Both Tyagi and Ohri described the sales bookings in this project within such a short span as "historical' and "a record" in the Indian residential real estate market.
Asked about the overall sales bookings of DLF in the current fiscal, Tyagi said the company had achieved sales booking of over Rs 6,500 crore during April-December period of this fiscal year.
With sales of more than Rs 8,000 crore in this project and miscellaneous sales in other projects, he said the total sales bookings in 2022-23 should be close to Rs 15,000 crore.
The company had clocked Rs 7,273 crore worth sales bookings in the previous financial year.
On DLF likely to become India's biggest realty firm this fiscal in terms of sales bookings, Tyagi said: "We are not in that race. We have never sort of tried to be on the treadmill of, are we the highest or not."
"We want to continue being the most profitable real estate company in the country, with highest margin on sustainable basis," the DLF CEO asserted.
Stating that market sentiments remain strong, Ohri said the company has plans to launch many projects in Delhi-NCR, Chennai and tri-city of Chandigarh to encash this surge in demand.
DLF has licensed land parcels in these locations and will launch it after taking necessary approvals, Ohri added.
Tyagi, the DLF CEO, noted that people are upgrading to bigger homes, especially after the Covid pandemic. He said the demand is strong across tier I and II cities amid tight supply. Tyagi said the large trusted players are gaining market shares.
DLF has two verticals -- development business which is housing and rental business where it builds commercial projects (office and malls) and then provides them on lease to corporates and retailers.
So far, the company has developed more than 153 real estate projects and an area in excess of 330 million square feet.
DLF Group has 215 million square feet of development potential across the residential and commercial segments.
Rent-yielding commercial assets are largely held by DLF Cyber City Developers Ltd (DCCDL), which is a joint venture between DLF and Singapore sovereign wealth fund GIC.
DLF holds nearly 67 per cent stake in the joint venture.