DLF Chairman Rajiv Singh remains bullish on India's housing sector and expects strong sales momentum to sustain on the back of rapid urbanization, improved affordability and aspirational need.
Singh also noted that the sector is witnessing a consolidation in demand towards credible and organized real estate developers.
In a message to DLF's shareholders in the annual report for 2022-23, Singh said the housing sector continues to experience strong demand.
"The outlook for housing demand remains positive, with sustained momentum expected due to factors such as urbanization, improved affordability, favorable consumer sentiments and increasing aspirational need," he said.
Singh observed that the housing sector is witnessing a trend of consolidation, which is skewed towards the more organized and credible developers.
"This trend is primarily influenced by heightened consumer confidence in these brands, substantial improvements in their financial positions and their ability to deliver high-quality, secure and sustainable ecosystems over the years," he explained.
During the last fiscal, Singh said the company's development business witnessed exceptional new sales bookings.
DLF's sale bookings jumped more than two-fold to a record Rs 15,058 crore in the last fiscal from Rs 7,273 crore in the previous year.
The company clocked Rs 8,000 crore sales bookings from a single luxury housing project "The Arbour" which was launched in Gurugram during the March quarter.
"The market response to new products launched by the company has been very encouraging," Singh said.
Given the growing demand and all favorable factors driving it, he said the company was focused and committed to scaling its business including launching projects across geographies.
"Our strategy is to introduce a diverse range of offerings to meet the evolving needs of the market," Singh outlined.
The DLF Chairman noted that the office segment continues to exhibit gradual recovery. During the last fiscal, occupancy levels improved across the entire portfolio.
"There was a growth in the rentals, mainly from mark-to-market rentals and rentals from our new asset DLF Downtown in Gurugram," he said.
The new IT campus and data center in Noida has received its occupancy certificate and the company remains bullish about the growth potential of this region, he said.
"In the retail sector, there has been a significant rebound with improved footfall and increased consumption across the portfolio. This resurgence is primarily supported by the recovery of the luxury segment and expansion of international brands," he said.
The retail business witnessed high occupancy levels and continued its growth trajectory during the last fiscal.
"The business posted healthy growth as compared to previous years. The demand remains intact and construction of our new retail destinations is on track. With the new additions we will be doubling our retail portfolio over the next 4-5 years," Singh said.
DLF is India's largest realty firm in terms of market capitalization. It has developed more than 153 real estate projects and developed an area in excess of 330 million square feet.
DLF is primarily engaged in the business of development and sale of residential properties (the Development Business) and the development and leasing of commercial and retail properties (the annuity business).
The group has an annuity portfolio of over 40 million square feet. The company has 215 million square feet of development potential across residential and commercial segments.