Dlf will open bookings for its flagship Dlf premium residential project, Midtown in central Delhi, by October 2021. The project is currently under construction and is close to its other luxury offering, Capital Greens.
The Dlf management, in its post-earnings call on June 12, said the company is very optimistic about Midtown and bookings will open in October this year. The total project size is 8 million sqft (MSF of which 2.1 MSF will be delivered by the second half of complete. Another positive is the shorter FY22 and the remaining 6 MSF after FY24. Cash conversion cycle leading to better cash The total sales potential of the project is flower generation, compared to townships 12,000-15,000 crore.
DLF Midtown is located at Shivaji Marg Moti Nagar- New Delhi. DLF Midtown (DMPL) is a 50:50 joint venture between DLF and Singapore’s sovereign wealth fund, GIC.
The company will continue to focus on luxury residential real estate with luxury low-rise housing projects of 10 MSF having a sales potential of 10,000-10,500 crore planned over the next 2-3 financial years, it added.
Another major development is the company’s focus on plotted development. DLF in its earnings call said dlf low-rise projects has witnessed a significant turn-around in the last financial year. The demand was attributed to consumers looking for larger independent units located amid a green belt.
Besides, such projects have a faster execution time of 12-18 months compared to highrise, which can take up to 24 months to complete. Another positive is a shorter cash conversion cycle leading to better cash flow generation, compared to townships.
Dlf will focus on low-rise independent floors in Gurgaon and Panchkula for the next two years, a source adding, “The rationale being that their plotted developments are located in prime locations and neighborhoods. Buyers of these independent floors will have instant access to existing social & entertainment infrastructure comprising schools, malls, recreational facilities like clubs and proximity to cybercity, etc. while moving into a prime location.”
Also, independent floors have been priced attractively which helps the buyer buy prime property at an affordable cost. For instance, a 300 sqyd plot has a market rate of ₹1.5 Lakh per sqyd in Gurugram, The construction cost to the company is ₹6.5 crore. A plot has 4 floors, and each floor is priced at ₹2.5 cr. So, after deducting the cost of land & construction, the company gets about ₹3 cr per plot.