After previous botched starts and much anticipation, DLF, India's most valued developer which has made its name in the luxury-premium housing and commercial property markets in Delhi NCR, finally made its entry into Mumbai on July 17, with the launch of the first phase of The Westpark development in Andheri, that can fetch the developer around Rs 2,600 crore by way of revenue.
DLF is executing the project as part of a 10 acre slum rehabilitation project, partnering Trident Realty. While DLF is responsible for executing the free-sale component, Trident is responsible for clearing the land and construction of the rehabilitation unit, the first phase of which is nearing handover to existing slum dwellers at the site.
Depending on the floor plan, DLF is charging between Rs 37,000 to Rs 47,000 per square foot for three-bedroom apartments, with the flats varying in size from around 1,100 square feet to 1,500 square feet. Despite the price points- Rs 4.5 crore to around Rs 8 crore- DLF is marketing the project as being a "premium" one, with the company referring to its large Gurugram offerings- Crest, Camellias, Dahlias, etc, as luxury-to-ultra luxury.
In messages to channel partners and investors, the company has signalled its intention to stay and fight for market share in the country's largest and most competitive real estate market, with multiple local and large developers.
The company also sought to accelerate sales by launching half of the first phase of the sale component on Thursday at a relatively promotional price, with the rest of the first phase of the inventory expected to be put up for sale in August with a slightly higher price point. The entirety of the first phase has 416 apartments across four towers, with the land parcel allowing for four more towers to be built.
Despite its stated aim to be a prominent player in Mumbai's real estate market, the company's management said at a media roundtable on Thursday that it would still choose pragmatism in securing new projects, either through redevelopment deals or land buys, given the difficulty in sourcing land in the city. Many developers are also locked in a close fight to secure redevelopment deals, and are often prepared to seek lower margins through large-scale incentives to existing homeowners.
"Land parcels in Mumbai are difficult (to secure), so it can be through joint development or in other opportunities. We will look at opportunities in a very pragmatic way. We are not here to look at opportunities in order to tick a box. We are not going to make any untoward statement or commitment to anybody where we cannot or are not serious about our delivery," said Aakash Ohri, DLF's joint managing director and chief business officer, at the roundtable.
DLF is investing around Rs 900 crore into the first phase of The Westpark, with the first phase expected to be delivered in around four years. Ohri refused to confirm whether DLF was attempting to undercut the micro-market with its initial pricing, commenting that price "is a factor of the service and the product".
He also stated that the company sees a strong momentum in sales going ahead, with demand from business owners, high-salaried professionals, figures from the entertainment industry, as well as non-resident Indians, the latter being a significant target market for DLF. The company expects the sales velocity to continue despite an overall moderation of sales in the market, especially in the higher end of the market.
"After the pandemic, residential real estate has become a priority, even as people delayed upgrades of their homes or going on a foreign holiday. I feel it is not going to go away, because it is one's own home. A lot of 30 to 40 year-olds are also coming in to buy homes, which is a reduction in property ownership timelines compared to previous generations," said Ohri.
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