DLF Ltd, a leading real estate developer based in Delhi-NCR, is set to significantly expand its rental portfolio in the coming years, with a target to generate Rs 10,000 crore in rental revenue by FY30. This ambitious plan involves investing Rs 20,000 crore over the next five years, which will be used to expand the company’s presence in new geographies and boost its office and retail spaces. DLF’s Chief Financial Officer, Badal Bagri, confirmed that the company is aiming to double its rental portfolio with projects already under execution and additional developments set to deliver substantial growth in the coming years.
As part of this expansion, DLF plans to add around 21 million square feet (msf) of office space, growing its office portfolio from 39 msf to 60 msf. Additionally, the company aims to increase its retail space from 4 msf to 12 msf over the next five years, with 8 msf already under development. Many of these retail projects are nearing completion and are expected to be delivered within the next year.
DLF’s current rental and hospitality business revenue stood at around Rs 7,000 crore in FY24. In order to support this growth, the company plans to allocate Rs 12,000 crore for its DLF Cyber City Developers Ltd (DCCDL) portfolio, while investing an additional Rs 8,000 crore across its rental and hospitality businesses. The company’s annuity business, which encompasses its rental operations, hospitality services, and asset management, is currently managing a substantial portfolio of around 44 million square feet of rental assets, with an impressive 93% occupancy rate.
Looking to the future, DLF is exploring opportunities in new markets, particularly in cities like Bengaluru and Mumbai, where it does not currently have a strong presence. The company sees these as key areas for expansion in line with the needs of its clients. While DLF’s primary focus has been in Gurugram, the company has already established a presence in Chennai and Hyderabad, with plans to grow further in these regions as well.
With a high occupancy rate of 93% in its office portfolio and a strong 98% occupancy in retail, DLF is on track to make significant strides in its rental business, continuing its role as a key player in India’s real estate sector.
