After NCR, DLF to Delve Into Mumbai, Chennai Residential-property Markets

Business Standard After NCR, DLF to delve into Mumbai, Chennai residentialproperty markets

The developer started concentrating on Delhi-NCR after selling some of its land parcels in cities such as Mumbai in 2012 to reduce debt.

DLF, the country’s largest listed developer, could again diversify into residentialproperty markets such as Mumbai and Chennai after focusing on its home turf, the National Capital Region (NCR).

The developer started concentrating on Delhi-NCR after selling some of its land parcels in cities such as Mumbai in 2012 to reduce debt.

“We have completed and delivered our projects across the country in Chennai, Bengaluru, Kolkata, Kochi, Indore, Lucknow, and Chandigarh Tricity. We are in the process of evaluating the best development plans for the residual land parcels in some of these cities and will plan launches accordingly, in addition to reinforcing the selling of the residual inventories,” said Ashok Tyagi, wholetime director, DLF. DLF in 2012 sold 17 acres of prime land in Mumbai to Lodha Developers for about Rs 2,700 crore, nearly four times higher than the price at which the company had bought this parcel in 2005. It has another land parcel in Mumbai.

“The real estate sector has gone through a tough patch in the past few years and we have strengthened our internal organisation and processes and excelled in all the geographies we operate in. We have fixed our balance sheet and believe we are at the start of the next buildout cycle,” he said.

Besides demand slowdown and stagnancy in prices in the past eight years, the sector saw policy challenges such as the note ban, goods and services tax, the Real Estate Regulation Act (Rera), and so on, which increased compliance and costs. At a recent webinar, Tyagi said the company was a national player in commercial properties.