DLFs new luxury project in Gurugram, The Arbour, has proved to be the Pathaan of real estate

A blockbuster

“This is the Pathaan of real estate. This has been the biggest blockbuster in the real estate industry,” said Ohri.

“People who've actually made money on DLF properties have waited for it. It is very encouraging to see that people have broken their FDs and mutual funds and moved that money into Arbour,” he said.

He said there was a "frenzy’’ for the project because there has been a “latent demand for a DLF product, and we are launching Arbour after almost 10 years in Gurgaon,” agreed Tyagi.

He says Gurugram has been waiting for this sort of luxury housing project from DLF for the last 8-9 years. “I think there was significant latent demand. And honestly, I think that demand continues to be there for great products at a good price, and by extremely credible developers. I think the market has clearly shifted towards more credible developers. That's something you will see not only in Gurgaon, but I think across the country now,” said Tyagi.

Elaborating on the launch, he said the size of the apartments is almost 3,900-plus sq ft. The project is expected to be spread across 25 acres, comprising five towers.

“It is something which has met the aspiration of the people. Besides the demand from NCR, we are overwhelmed by the support and the demand from other geographies, including from NRIs. There has also been a huge corporate demand,” Ohri said.

The project is located off Gurgaon’s main golf course, on a 16-lane carriageway. The apartments include four bedrooms, large decks, and a floor-to-ceiling height of almost 3.4  metres. “It connotes luxury in every way. And most importantly, it comes with all the facilities that DLF provides, like clubs, etc.,” he added.

Cap on capital gains deduction 

Asked if the rush to book units could be attributed to the project being launched after three waves of Covid, as also the fact that budget 2023 has capped the deduction on capital gains for investment in residential property to Rs 10 crore, Ohri said the pandemic has led to increased demand for bigger and better homes.  “People have moved a chunk of their monies into real estate. That is very encouraging. It's part of every Indian's DNA,” Ohri explained.

With regard to a deduction on capital gains,  he said, “That's more to do with larger luxury buys. I don't think there's an immediate impact of that on The Arbour.”

Pre-formal launch sales

Ohri said the project was ``pre-launched’ on February 15th. “That was the first time we introduced the product to our channel partners, who are the go-between between us and the customers.”

“I don't think this is a flash in the pan. If you see our performance, our super luxury floors in Panchkula were sold out in about 7 to 10 days at Rs 3 crore per unit,  the highest price point in Panchkula ever. Prior to that we sold 1,500 plots in Chennai, in just about three weeks,” he elaborated.

"This sends out a message:  ‘take these launches seriously. Don't wait for tomorrow’," added Ohri.

“We had not launched a high-rise in the last seven, eight years. While it's still all Gurgaon, it was relatively a new geographical sub-segment for us. We have also set a new benchmark in sales recognition. Normally, the industry recognises the pre-sale once the customer puts in the application and pays Rs 5 or 10 lakh. We announced it after we had collected 10 percent of the amount, which is almost Rs 80 lakh-plus, and the customers had signed off on the detailed agreement to sell. We have upped the threshold of recognition as well,” said Tyagi.

Plans for Mumbai, Chennai, Noida, Goa

Asked if the company is hopeful of repeating its success in the next fiscal, Tyagi said the real estate major intends launching new projects. “Normally, when we announce our annual results in early May, is when we provide the guidance for the next year.  Our new sales projections for the next year should be formally shared  by early May.”

Regarding Delhi’s One Midtown project, Ohri said: “That’s sold out. One Midtown was also a geography that we went into after almost a decade. Delhi has its own challenges because high rises aren't very many there. The pattern of living is different. Concepts are different. There are challenges in terms of outright sales, etc. But again, it was a great endorsement, and we will soon be launching the last tower there.”

As for projects in Mumbai, Tyagi said that DLF was looking at opportunities. "Our joint venture (JV) in Mumbai has run into some issues and will take a while to be sorted out. But we are exploring other opportunities because Mumbai is the country's biggest residential market.”

Asked if it will be a redevelopment project, Tyagi said, “Let's see how it pans out. We will share the details once we close the deal.”

Regarding Noida, Tyagi said the company has been scouting for the right land parcel there. “We honestly haven't been able to find the right land parcel, one devoid of any legal issues and other challenges. But otherwise, Noida is a great market for sure. Unfortunately, a lot of the strong developers there have sort of declined over the years.”

The company also has plans for Chennai this fiscal. “We've got something planned for Chennai, in the heart of the city, which is one of the best locations that Chennai has to offer. When we share our market guidance for next fiscal, you will hear about it,” said Ohri, adding that it would be a luxury-plus development.

The realty firm also has Goa on its radar. “Goa is also part of the plan. I don't know whether it's going to be part of this fiscal or not.’’

Tyagi made it clear that notwithstanding the other new launches, NCR and the Chandigarh Tricity will continue to be the focus areas. “We will continue to obviously do the one-off development in the other locations as well,” he added.

Regarding Haryana’s Deen Dayal Awas Yojana, where construction for the fourth floor is currently on hold, Tyagi said, “Our building plans were all cleared.  The industry and the government have to engage with each other and resolve this. But this does not  impact our plans overall.”