DLF Expanding Retail and Office Spaces with New Projects

DLF, a leading real estate developer, is gearing up for major growth with three new malls under construction. These malls are located in Moti Nagar (Central-West Delhi), DLF Phase-5 (Gurugram), and Panjim (Goa). Once operational, these malls will boost DLF's retail portfolio from 5 million square feet to 6.3 million square feet.

The company expects these new projects to significantly increase its rental income. By the end of the financial year 2025-26 (FY26), DLF's rental earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to rise by 28%, reaching around ₹6,800 crore. This includes contributions from its rental arm, DLF Cyber City Developers Limited (DCCDL).

Apart from the malls, DLF is working on Atrium Place, an office space in Udyog Vihar, Gurugram, developed in partnership with Hines. This project covers 2.9 million square feet, with rentals expected to start for 2.1 million square feet by mid-2025. An additional tower, spanning 8 lakh square feet, will likely begin generating income in mid-2026.

Other upcoming milestones include the completion of Downtown 4 in Gurugram, which has already been fully leased. The project is expected to secure its occupancy certificate (OC) soon, with rentals likely to begin around May 2025. Similarly, Downtown 3 in Chennai is nearing completion, with its OC expected by late December 2024 or early January 2025.

In the July-September 2024 quarter, DLF reported impressive financial growth. DCCDL’s revenue grew by 13% year-on-year to ₹1,653 crore, while profits increased by 25% to ₹521 crore. DLF’s overall revenue for the quarter jumped by 48% to ₹2,181 crore compared to the same period last year.

These developments highlight DLF’s strong focus on expanding its retail and office spaces, setting the stage for higher rental income and growth in the coming years.