NEW DELHI – Real estate giant DLF is set to inject a substantial ₹10,000 crore over the current and next fiscal years (ending FY27) into constructing premium office spaces and shopping malls. This strategic move is aimed at significantly boosting its already robust rental income, a senior company official confirmed.
DLF Group currently commands a formidable portfolio of 45 million square feet of commercial assets, which generates an annual rental income exceeding ₹5,000 crore. This portfolio is predominantly composed of 41 million square feet of office spaces and 4 million square feet of retail areas.
“India’s Grade A++ commercial real estate has emerged as a global value proposition offering world-class quality at a more efficient cost,” Sriram Khattar, DLF Vice Chairman and Managing Director (Rental Business), told PTI. He emphasized that DLF is capitalizing on this advantage by expanding its rent-yielding commercial assets, leveraging its extensive licensed land bank.
The company is actively developing new office and retail complexes in key urban centers including Gurugram, Chennai, Delhi, and Noida, responding to strong demand from corporates and retailers. “Since the post-COVID recovery, DLF has focused on expanding its commercial footprint in key urban hubs at Delhi-NCR and Chennai,” Khattar stated. He further detailed an annual capital expenditure and approvals outlay of approximately ₹5,000 crore for FY26 and FY27, spread across its joint ventures with GIC and Hines, as well as its own balance sheet.
The development of these premium shopping malls and office spaces is anticipated to “significantly boost rental income in the coming years,” Khattar added.
A significant portion of DLF Group’s commercial assets is held under its joint venture firm, DLF Cyber City Developers Ltd (DCCDL), where DLF holds a 66.67% stake and Singapore’s sovereign wealth fund GIC holds the remaining 33.33%. Approximately 43 million square feet of the group’s operational portfolio falls under DCCDL. Furthermore, DLF has a joint venture with US-based Hines to develop a 3 million square feet office complex in Gurugram, in which DLF holds a 67% stake.
Looking ahead, DLF Group has an ambitious pipeline with 28 million square feet of commercial area under planning and development. Of this, over 17 million square feet are currently under construction, with more than 6 million square feet slated for completion within the current fiscal year. Key projects include two large shopping malls in Gurugram and Noida, office complexes in Gurugram and Chennai, and a data centre in Noida.
The company’s rental arm, DCCDL, has already demonstrated strong performance. Recently, DLF reported that DCCDL clocked an 11% annual growth in office rental income, reaching ₹3,874 crore in the last financial year. Rental income from retail properties also saw a 6% increase, growing to ₹880 crore from ₹828 crore in the 2023-24 financial year.
This robust financial and operational performance has earned DCCDL upgraded credit ratings. Khattar highlighted that Crisil has enhanced its rating to ‘AAA’ with a stable outlook, a rare achievement for a non-listed entity in the country. Simultaneously, ICRA upgraded its rating from AA+ stable to AA+ with a positive outlook.
DLF stands as India’s largest real estate firm by market capitalization. Since its inception, the company has developed over 185 real estate projects, encompassing more than 352 million square feet. The group currently holds a development potential of 280 million square feet across residential and commercial segments.
