Dahlias project sets the stage for DLF’s rosy FY25 exit

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Subscribe to enjoy similar stories. Realty firm DLF Ltd's FY25 pre-sales target of ₹17,000 crore was certainly a tall order, as the first half of FY25 was marred by muted new launches and weak sales in existing projects. But the launch of the uber-luxury project ‘The Dahlias’ at Golf Course Road in Gurugram in the December quarter (Q3FY25) changed everything.

The project has 420 units spanning around 4.5 million square feet (msf). DLF has sold 173 units at an average selling price of around ₹65,000 per square foot. The project garnered bookings worth ₹11,816 crore in Q3 amid the overwhelming response, almost entirely driving the quarter’s pre-sales.

This pushed DLF’s pre-sales to ₹19,187 crore in the first nine months of FY25, surpassing its FY25 target. The ongoing demand momentum for luxury projects in DLF’s key Gurugram micro market, coupled with its premium brand positioning, drove sales in The Dahlias. Over 50% of the demand in Dahlias was led by the existing Golf Links community and NRIs contributed 12% to the sales, the management said in the Q3 earnings call.

DLF expects to monetize the Dahlias project fully in three years. The project’s remaining inventory will be priced higher. Thanks to Dahlias, DLF is now in for a solid FY25 exit.

Analysts at Jefferies India have raised DLF’s FY25 pre-sales estimates by 15% to ₹23,000 crore. However, given the high base in FY25 and the exhaustion of ready-to-move inventory of housing units, timely and steady new project launches are crucial for DLF to maintain its pre-sales trajectory. DLF has increased its project pipeline to ₹44,100 crore for FY25 and beyond FY25 to ₹70,400 crore versus ₹63,500 crore indicated in Q2FY25.