DLF Sells Rs 16,000 Crore Worth of Luxury Apartments in Gurugram Project

DLF Limited has reported remarkable sales figures for its ultra-luxury residential project, "The Dahlias," located in Gurugram. The company has sold 221 apartments, generating total sales bookings of Rs 15,818 crore as of the end of the September quarter. This project, launched in October last year, is a 17-acre development featuring 420 apartments and penthouses, with an average selling price per apartment standing at approximately Rs 72 crore.

Notable recent transactions include a Delhi-NCR-based industrialist purchasing four apartments for Rs 380 crore and former Indian cricketer Shikhar Dhawan acquiring a super-luxury apartment for Rs 69 crore earlier this year.

"The Dahlias" project follows the success of DLF's previous ultra-luxury offering, "The Camellias," in the same location and has significantly contributed to DLF's overall record sales bookings for the fiscal year 2024-25.

Despite the strong sales in luxury real estate, DLF's consolidated net profit for the second quarter of the current fiscal year saw a 15% decline to Rs 1,180 crore, with revenue from operations also falling to Rs 1,643 crore compared to the previous year. However, total income saw a slight increase to Rs 2,261 crore, boosted by other income.

Impact: This news highlights robust demand and strong pricing power in India's ultra-luxury real estate segment, particularly in prime locations like Gurugram. For DLF, it demonstrates successful execution and market reception of high-end projects, bolstering investor confidence in its luxury portfolio. It also indicates a segment of the economy where high net worth individuals are actively investing. The substantial sales figures, even amidst a slight dip in overall quarterly profits, suggest resilience and potential for future growth in luxury property.

Impact Rating: 7/10

Difficult Terms:

Ultra-luxury flats: High-end residential properties designed with premium finishes, advanced amenities, and exclusive features, targeting affluent buyers.

Sales bookings: The value of property sales that have been committed or reserved by customers, representing future revenue.

Consolidated net profit: The total profit of a company, including its subsidiaries, after deducting all expenses and taxes.

Revenue from operations: The income generated from the primary business activities of a company.

Fiscal year: A 12-month period that a company or government uses for accounting and financial reporting purposes.