The total project size is 8 million sq ft (MSF), of which 2.1 MSF will be delivered by the second half of FY22 and the remaining 6 MSF after FY24. The total sales potential of the project is Rs 12,000-15,000 crore.
DLF will open bookings for its flagship premium residential project, Midtown in central Delhi, by October 2021. The project is currently under construction and is close to its other luxury offering, Capital Greens.
The DLF management, in its post-earnings call on June 12, said the company is very optimistic about Midtown and bookings will open in October this year. The total project size is 8 million sq ft (MSF), of which 2.1 MSF will be delivered by the second half of FY22 and the remaining 6 MSF after FY24. The total sales potential of the project is Rs 12,000-15,000 crore.
DLF Midtown is located at Shivaji Marg, Moti Nagar in New Delhi. DLF Midtown (DMPL) is a 50:50 joint venture between DLF and Singapore’s sovereign wealth fund, GIC.
The company will continue to focus on luxury residential real estate with premium/ luxury housing projects of 10 MSF having a sales potential of Rs 10,000-10,500 crore planned over the next 2-3 financial years, it added.
Another major development is the company’s focus on plotted development. DLF in its earnings call said low rise housing has witnessed a significant turnaround in the last financial year. The demand was attributed to consumers looking for larger independent units located amid a green belt.
Besides, such projects have a faster execution time of 12-18 months compared to a high rise, which can take up to 24 months to complete. Another positive is the shorter cash conversion cycle leading to a better cash flow generation, compared to townships.
DLF will focus on low-rise independent floors in Gurgaon and Panchkula for the next two years, a source said adding, “The rationale being that their plotted developments are located in prime locations and neighbourhoods. Buyers of these independent floors will have instant access to existing social and entertainment infrastructure comprising schools, malls, recreational facilities like clubs and proximity to Cybercity etc. while moving into a prime locality”.
Also, independent floors have been priced attractively which helps the buyer buy prime property at an affordable cost. For instance, a 300 sq yard plot has a market rate of Rs 1.5 lakh per sq yard in Gurgaon. The construction cost of the plot comes to around Rs 2 crore. So total cost to the company is `6.5 crore. A plot has 4 floors, and each floor is priced at Rs 2.5 crore. So, after deducting the cost of land and construction, the company gets about `3 crore per plot.