Mumbai real estate: DLF's first project may have apartments in Rs 5.5 crore to Rs 7.5 crore range

Mumbai real estate update: DLF has identified a fresh pipeline of new products of approximately 32 million square feet with a sales potential of approximately Rs 79,000 crore. "The key launches that we are working on for the next 12 to 15 months are products in Gurugram, Chennai, Goa and the first phase of our Mumbai project," Vivek Anand, group CFO of DLF, said on the earnings call.

Real estate developer DLF, which is making inroads into the Mumbai market with its first launch in the Andheri area, is likely to price apartments in the project tentatively in the range of Rs 5.5 crore to Rs 7.5 crore, a company official said.

While these will be three-bedroom and three-plus-bedroom apartments, their sizes have not been finalised, Aakash Ohri, chief business officer and joint managing director of DLF Home Developers, said during an earnings call. The first phase of the project consists of 1 million square feet of development.

DLF is developing the Slum Rehabilitation Authority project in a joint venture with the Trident Group. The listed company announced its re-entry into the Mumbai real estate market with this project in July 2023.

DLF will pump in Rs 400 crore as equity to develop the project with a potential saleable area of 3 million to 3.5 million square feet, the company had said.

Price and size

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Special Correspondent|Moneycontrol

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"It's going to be premium-plus ticket size, again, yet to be fully finalised, but it will be between Rs 5.5 crore to Rs 7.5 crore,” Ohri said about the Mumbai project. “As far as the sizes are concerned… it's three-bedroom, three-bedroom plus, but we are just about finalising… that.”

According to local brokers, three-bedroom apartments vary in size from a carpet area of 1,000 square feet to 1,500 square feet in the case of luxury projects.

Also read: DLF likely to launch first phase of its Andheri project before June 2024

According to DLF, sustained demand momentum across all segments continues to be encouraging.

"Consequently, we have identified a fresh pipeline of new products of approximately 32 million square feet with a sales potential of approximately Rs 79,000 crore, which is more than double of what we have delivered during the last three to four years and is in line with our plans of scaling up the business," Vivek Anand, group CFO of DLF, said on the earnings call.

"We expect to launch these products over the next three to four years. The key launches that we are working on for the next 12 to 15 months are products in Gurugram, Chennai, Goa and the first phase of our Mumbai project," Anand added.

DLF had reported a 26 percent increase in consolidated net profit to Rs 649 crore in the third quarter of FY24. The company said it had recorded the highest quarterly sales bookings of Rs 9,047 crore, backed by multiple launches during the quarter. Consolidated revenue rose to Rs 1,644 crore in October-December from Rs 1,559.66 crore a year ago, according to a regulatory filing.