Real estate giant DLF Ltd has announced plans to invest approximately ₹20,000 crore over the next few years to complete the construction of its already launched residential projects.
This move is expected to generate a total cash surplus of around ₹43,000 crore from these launched projects.
In a corporate presentation uploaded on stock exchanges’ websites on Friday, DLF detailed its growth strategy for both its development (housing) business and its annuity (rental) business, which focuses on building rent-yielding commercial projects.
According to the presentation, the “total pending cost to complete all launched projects” stands at around ₹20,000 crore.
Over the last few years, DLF has introduced numerous housing projects, particularly in Gurugram. Among them is the ultra-luxury project ‘The Dahlias,’ which has a revenue potential of approximately ₹35,000 crore.
As of the end of the December quarter, DLF had a cash balance of ₹9,000 crore, while customer receivables from already-sold housing units stood at ₹30,000 crore.
Additionally, the estimated cash surplus from inventory launched but unsold until the December quarter of this fiscal year is projected to be around ₹24,000 crore.
After deducting the pending construction cost, the total surplus cash potential from launched projects amounts to ₹43,000 crore.
Apart from residential developments, DLF is also heavily investing in commercial real estate. The company plans to invest another ₹20,000 crore in the medium term (five years) to develop commercial properties, including office and retail spaces.
“Significant growth capex being committed for growth,” the company stated, adding that an incremental capex of around ₹20,000 crore is planned over the medium term.
These commercial developments will be executed directly by DLF Ltd as well as through joint venture firms, including DLF Cyber City Developers Ltd (DCCDL).
DLF has a robust operational portfolio of around 44 million square feet of rental assets, boasting high occupancy levels of 93%. The company aims to expand this portfolio to 73 million square feet in the medium term.
DCCDL, a joint venture between DLF and GIC, holds a majority of the rental assets within the DLF group, with DLF maintaining a 67% stake in the JV firm.
DLF emphasized that it has a “high-quality owned land bank available for sustainable long-term growth.” The annuity business includes rental operations of DLF, DCCDL, and Atrium Place (a joint venture with US-based Hines), as well as the group’s hospitality and asset management businesses.
Recently, sources revealed that DLF’s rental arm, DCCDL, will invest around ₹6,000 crore to develop 75 lakh square feet of prime office and retail spaces in Gurugram.
DCCDL has commenced construction of 5.5 million (55 lakh) square feet of Grade A+ office spaces as part of the new phase of its ultra-premium commercial project, ‘DLF Downtown, Gurugram.’
Additionally, DCCDL has started work on the ‘DLF Mall of India, Gurugram,’ which will cover a total area of 20 lakh square feet.
On March 21, 2025, DLF share price ended 0.6% higher at ₹696.75. DLF’s share price reached a 52-week high of ₹967, and a 52-week low of ₹622.15. As per BSE, the total traded volume for the stock stood at 0.96 lakh shares with a turnover of ₹6.79 crores.
At the current price, DLF shares are trading at a price-to-earnings (P/E) ratio of 364.79x, based on its trailing 12-month earnings per share (EPS) of ₹1.91, and a price-to-book (P/B) ratio of 6.16, according to exchange data.
DLF Ltd’s strategic investments of ₹20,000 crore in residential and commercial projects underscore its commitment to growth and market leadership. With a strong financial position, a robust rental portfolio, and significant development potential, DLF is well-positioned to deliver sustainable long-term value.
The company’s focus on high-quality projects, coupled with its expansive land bank, ensures its continued dominance in India’s real estate sector, benefiting stakeholders and customers alike.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 24, 2025, 8:25 AM IST
Dev Sethia
Dev is a content writer with over 2 years of experience at Business Today, Times of India, and Financial Express. He has also contributed stories in Hindi for BT Bazaar and Khalsa Bandhan News Paper. A journalism postgraduate from ACJ-Bloomberg, Dev enjoys spending his spare time on the cricket pitch.
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