CLSA has upgraded DLF Limited to an ‘Outperform’ rating, increasing the target price to ₹870, following robust demand for DLF’s ultra-luxury residential project, ‘The Dahlias’. Channel checks with property brokers in the National Capital Region (NCR) indicate that DLF has received expressions of interest (EOIs) for over 100 units out of the total 420 available, amounting to more than ₹8,000 crore (approximately US$1 billion). Notably, the conversion rate for these EOIs stands at approximately 80%, underscoring strong buyer commitment.
The unprecedented demand is particularly remarkable given that each apartment is priced upwards of ₹80 crore (over US$10 million). These likely sales figures surpass initial assumptions for FY25, reflecting a significant uptick in the luxury real estate segment.
‘The Dahlias’ is part of DLF’s strategy to cater to the high-end market, offering expansive apartments ranging from 9,500 to 16,000 square feet, with an average sale ticket size of around ₹100 crore. The project also includes plans for a two million square foot clubhouse, enhancing its appeal to affluent buyers.
In recent developments, DLF reported a 122% year-on-year increase in profit after tax for the second quarter of FY25, reaching ₹1,891 crore. Revenue from operations also rose by 46% to ₹1,975 crore during the same period. The company attributed this growth to strong sales in its luxury housing segment and effective cost management strategies.
