DLF Doubles Down on Luxury Real Estate, Announces New Projects Despite Profit Dip
DLF, India’s leading real estate developer by market capitalization, is strategically shifting its focus toward the luxury segment with a series of ultra-premium project launches planned over the next eighteen months, even as the company reported a decline in quarterly profits.
The company unveiled its ambitious pipeline during an earnings call discussing the September quarter of fiscal year 2025-26 (Q2 FY26). According to Aakash Ohri, joint managing director and chief business officer at DLF Home Developers, upcoming launches include projects in Goa, Arbour Senior Living, Hamilton Court Phase II, and the second phase of The Westpark in Mumbai.
The Goa project is anticipated to hit the market in the third quarter of FY26, while the remaining developments are slated for launch in FY27. DLF also intends to explore further development phases within its Privana project and continue investments in Panchkula during the next financial year. “Right now, our main focus is making sure that our construction capabilities are strengthened so that customer commitments are on track,” a senior official stated.
Despite a 15 percent decrease in consolidated net profit for the September quarter, attributed to substantial debt repayment, DLF demonstrated robust new sales bookings and strong operational performance. This performance underscores the continued, buoyant demand within India’s premium housing market.
The company is also cautiously evaluating potential investments in Noida, expressing interest but emphasizing a preference for opportune market conditions. A company release indicated that DLF’s annuity business – encompassing rent-yielding office and retail properties – continues to improve, maintaining a strong occupancy rate of 94 percent.
Currently, DLF has approximately 25 million square feet (msf) of space under planning and development, with 2.7 msf scheduled for completion in FY26. Rental income from three retail assets – Midtown Plaza in Delhi, Summit Plaza in Gurugram, and DLF Promenade in Goa – is projected to begin in the fourth quarter of the current fiscal year, fully realized by the second quarter of FY27.
Sriram Khattar, vice-chairman and managing director at DLF, explained that “tenant bidders are progressing fast, and we expect the rental income to start coming in from December. But for all three put together, the rental income will come by about April next year.” The occupancy certificate (OC) for Midtown Plaza has already been secured, with OCs for the remaining two assets expected shortly. “After the OC comes, it typically takes an average of four to five months for tenants to complete their fit-outs before the income starts coming in. On a cumulative basis, for the three malls, the rental income should be around ₹450–460 crore,” Khattar added.
DLF is actively identifying potential assets for future development once these three malls are operational. “While our five-year projection does lay out some of those assets, I think serious work on those could be done by the early part of next year,” one official noted.
Construction is well underway at Downtown Gurugram, with completion targeted for mid-2028. Similarly, construction of Towers 4 and 5 at Downtown Chennai is progressing, with an anticipated completion date in early 2028.
Despite the positive outlook, DLF’s shares experienced a 2.64 percent decline on Friday, closing at ₹756.20 apiece on the bourses. This dip may reflect investor reaction to the reported profit decrease, even as the company positions itself for long-term growth in the luxury real estate sector.