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DLF Expands into Mumbai's Luxury Housing Market with Competitive Pricing

DLF ventures into Mumbai's luxury market and announces record profits, signaling a strategic expansion into high-end Indian real estate.

By Bill Bullington

5/16, 09:13 EDT
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Key Takeaway

  • DLF Ltd. enters Mumbai's luxury housing market with a new project in Andheri, aiming to attract buyers with competitive pricing for premium properties.
  • Achieving record annual profit and sales success, DLF sold homes worth $865 million within three days in its Gurugram projects, indicating strong demand for luxury housing.
  • Expanding into Goa with plans for 62 villas priced between $5 million to $6 million each, reflecting DLF's strategy to capitalize on India's surging luxury real estate market.

Testing Mumbai's Luxury Market

DLF Ltd., India's largest real estate developer, is venturing into Mumbai's luxury condominium market with a new project in the western suburb of Andheri. This move marks the company's initial foray into the financial hub's high-end real estate sector. Aakash Ohri, DLF's senior executive director for business development, highlighted that the project would feature luxury premium properties, including three or more bedroom apartments ranging from 1,600 to 1,700 square feet. Ohri emphasized the competitive entry price points for these luxury offerings, indicating DLF's strategy to attract buyers in a market known for its high margins.

Record Annual Profit and Sales Success

DLF recently announced its highest annual profit since the fiscal year ending in March 2018, alongside a conservative pre-sales guidance for the upcoming year. This announcement reflects the company's cautious optimism about the demand for luxury housing. Notably, DLF achieved remarkable sales success with its Privana South project in Gurugram, selling all homes worth $865 million within three days of launch. A similar pattern of rapid sales was observed with the DLF Privana West project, which also sold out in three days after its launch in May.

Competition and Market Trends

In Mumbai, DLF is set to compete with established developers such as Macrotech Developers Ltd., Oberoi Realty Ltd., and Keystone Realtors Ltd. for a share of the luxury market. This competition comes at a time when India's real estate sector is experiencing a surge in luxury home sales, the best since 2008, defying a global slowdown. The pandemic has played a significant role in this trend, with extended lockdowns and the shift to remote work increasing the demand for more spacious and luxurious homes. Knight Frank India notes that developers are now prioritizing premium homes over affordable housing, aligning with the market's shifting preferences.

Grand Plans for Goa

Beyond Mumbai, DLF has ambitious plans for the beach-side holiday destination of Goa. The company intends to construct approximately 62 villas on a 58-acre hill, with prices ranging from $5 million to $6 million each. This project underscores DLF's commitment to expanding its luxury real estate portfolio and capitalizing on the growing demand for high-end residential properties in India.

Management Quotes

  • Aakash Ohri, Senior Executive Director for Business Development at DLF:

    "The development will be in the western suburb of Andheri, and will comprise of three or more bedroom apartments spread over 1,600 square feet (148.64 square meters) to 1,700 square feet... The Mumbai project is what DLF refers to as a “luxury premium” property where they earn higher margins... the entry price points would be “quite competitive.”" "Last year was the best for home sales in India since 2008, bucking a global slowdown in the real estate sector. The pandemic, which forced people to stay indoors during lockdowns and work out of smaller homes, accelerated the desire of Indians to buy more luxurious homes." "DLF’s plans for the beach-side holiday spot of Goa are grander. It will build around 62 villas on a 58-acre (23.5 hectare) hill, which will cost between $5 million to $6 million."