DLF sold ₹2,300 crore flats in a week: Inside India’s luxury real estate comeback

From cosy two-bedroom flats to upscale residences, Indian buyers are showing changing preferences. According to a survey conducted by Anarock in the first half of the calendar year 2025, 36% of respondents showed interest in properties priced between ₹90 lakh and ₹1.5 crore.

Supporting the demand for premium housing, in the first quarter of the financial year (FY) 2025, 1,930 luxury houses, priced over ₹4 crore, were sold in the top seven cities of India, marking a 28% increase compared to the same quarter of the previous financial year.

Looking at the real estate sector as a whole, the industry is projected to reach a market size of US$1 trillion by 2030 and over US$10 trillion by 2047. Average home prices, which surged by 13–15% in FY25, are expected to see another 3–5% increase in FY26. With all these figures and projections in hand, isn’t it the right time to say that DLF and Godrej Properties are back in vogue?

DLF and Godrej Properties: are they worth considering

Let’s do a quick analysis of how DLF and Godrej are performing in terms of innovation, project development, and financials:

DLF: Sustainable innovation meets market re-entry

DLF Ltd. is exploring every possible way to dominate the real estate sector. Its Cyber City in Hyderabad has become the first commercial office space in India to receive LEED Zero certifications in Energy, Water, and Waste from the U.S. Green Building Council (USGBC). To achieve net-zero energy consumption, DLF uses solar façades, geothermal cooling, and AI-controlled HVAC systems.

Another notable effort, through modular construction techniques, aims to reduce construction completion time by 30% to 40%. DLF is now using prefabricated bathroom pods, MEP shafts, and façade panels that are manufactured offsite and assembled onsite with precision robotics.

Also, to boost revenue per square foot, DLF successfully integrated experience-driven retail zones. These zones combine lifestyle, dining, and wellness and use behavioural analytics and footfall heatmaps to optimise tenant placement and consumer engagement.

Well, besides innovation, DLF re-entered the Mumbai market after almost a decade in partnership with Trident. Notably, the company’s Andheri project, which has 416 flats worth ₹2,300 crores, sold out within a week. Alongside premium projects, the company, following the guidelines of the Slum Rehabilitation Authority (SRA), is also building small units of around 300–350 square feet each to rehabilitate slum dwellers. This project is expected to be completed by 2029.

To further contribute to the revenue, DLF’s upcoming commercial projects include DLF Paanjim, Goa; DLF Retail and DLF Shops, Pune; and DLF Office Space, Gurgaon.

A few months ago, the company also signed a deal with Srijan Group under the Master Framework Agreement (MFA) to sell Srijan’s IT/ITES SEZ business in Kolkata for ₹693 crores.

Moving to the financials, DLF posted a total revenue of ₹2,717 crores in Q1FY26, a 66.45% increase compared to the same quarter of the previous financial year. Net profit for the June quarter of FY26 stood at ₹763 crores, an 18.3% year-on-year increase. However, both revenue and net profit declined compared to Q4FY25. The reason for this drop is the absence of one-time gains and revenue recognition from projects such as The Camellias, an uber luxury offering from DLF.

Some positives from DLF Ltd. are a healthy dividend payout ratio of 42.7% and a CAGR profit of 21% over the previous ten years.

In the span of one year, DLF’s share price fell by 4.8%, while the five-year returns stood at 345.7%. The dip was attributed to muted pre-sales expectations and slower project launches. At present, DLF shares are trading at 4.51 times their book value. In terms of holdings, the promoters remain constant; however, Invesco Global Fund, the foreign institutional investor, has reduced its holdings to 15.46% in the September quarter from 15.98% in the June quarter.

Godrej Properties: AI, EVs, and aggressive land banking

Similar to DLF, Godrej Properties is also focused on sustainable building. It plans to reduce Scope 3 emissions by 88.5% by 2026. Most of its new launches in FY2025 were IGBC Gold- or Platinum-certified. The company has also begun using AI in project management to shorten construction timelines and allocate resources more effectively.

To align with India’s EV push, the company has begun integrating EV charging stations in all new premium residential developments. Godrej Properties is also using geospatial analytics and AI to identify high-potential land parcels based on demographic trends, infrastructure growth, and regulatory ease.

Talking about recent projects, the company recently acquired a 26-acre land parcel in South Bengaluru to develop a premium residential project. Two months ago, Godrej Properties also won the rights to a 7.8-acre land parcel in an auction near HITECH City, Hyderabad, for ₹548 crores. The acquired land has the potential to generate around ₹3,800 crores in revenue. A day ago, Godrej Properties received RERA approval for its upcoming residential project in Worli, Mumbai, which is projected to generate around ₹10,000 crore in revenue.

Other notable deals in recent times include 34 acres of land in Vadodara, 48 acres in Doddaballapur (North Bengaluru), and 50 acres in Raipur.

In Q1FY26, Godrej Properties reported total revenue of ₹435 crores, marking a 79.5% decline on a month-on-month basis and a 41.13% drop year-on-year. The possible reason for the revenue decline is the strong launches in Bengaluru and Greater Noida, as these markets generally have longer sales cycles and lower average realisation rates than Mumbai or NCR, which impact immediate revenue recognition.

Net profit for Q1FY26 stood at ₹598 crores, reflecting an increase of ₹79 crores year-on-year and ₹220 crores month-on-month. Notably, the profit has grown at a CAGR of 23% over the last ten years. The company also saw a reduction in debtor days from 42.5 to 32.2.

In the span of a year, Godrej Properties’ stock fell by 23.4%, but its five-year returns stood at 119.0%. Its shares are currently trading at 3.98 times their book value. Even with consistent profits, the company is not paying dividends to its shareholders. Promoters’ holdings have decreased by 11.4% in the last three years, but a slight increase was seen in the September quarter from Godrej Seeds & Genetics Limited.

Investor View: Balancing growth against sector headwinds

From an investment point of view, there are multiple things to consider at a broader level.

In the first half of FY26, private equity investment in the Indian real estate sector fell by 15% year-on-year to USD 2.2 billion, down from USD 2.6 billion in the first half of FY25. The increase in greenfield construction costs, which rose by 2–4% year-on-year in 2024–25 and are expected to rise further in FY26 due to higher input prices and wage inflation, is adding to the sectoral challenges.

Land acquisition remains a challenge, especially in metro peripheries. Take the recent example from Bengaluru’s Devanahalli taluk, where farmer protests led to the cancellation of a 1,777-acre industrial land proposal. Such disruptions delay project approvals and increase acquisition costs, particularly in Tier I cities.

However, if you are looking solely at DLF and Godrej Properties, which offer premium projects, the significant occupancy in rental assets, high gross margins, aggressive land acquisition strategies, strong launch pipelines, and the enablement of digital sales are positives to consider.

DLF even received bullish sentiment from brokerage firm CLSA, which sees a 22% upside potential in the stock as of July 1 from its then level of ₹837 per share. The stock currently trades at ₹780 per share. However, Nomura, in May 2025, has a neutral stance and expects muted FY26 guidance and declining pre-sales momentum, with no fresh triggers to sustain growth. DLF’s limited diversification beyond NCR and now Mumbai also contributes to cyclicality risks.

Godrej Properties faces a more divided outlook. After Q1FY26 financials, Jefferies maintains a ‘Buy’ rating with a target price of ₹3,000, based on a strong launch pipeline and improving cash flows. Yet, Nomura has downgraded the stock to ‘Reduce’, warning of a possible miss in FY26 pre-sales guidance and stretched valuations, and has placed a downside target of ₹1,900.

To sum up, both these companies require scrutiny of launch schedules, debt metrics, and regional demand dynamics.

Note: We have relied on data from Screener throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.

The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.

Rishabh Sinha is a seasoned financial content creator with over 10 years of experience in BFSI domain. His portfolio spans over 20 of India’s most trusted financial brands. Rishabh brings depth, structure, and a reader-first approach to every piece he crafts.

Disclosure: The writer and his dependents do not hold the stocks discussed in this article.The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein.  The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors.  Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.