DLF sells out 1,113 luxury apartments in Gurugram in three days

Real estate developer DLF Ltd has sold out all the luxury apartments on offer in its $866 million (₹7,200 crore) project in Gurugram in three days, the company said on Monday.

Spread across 25 acres (about 10 hectares) in Sectors 76 and 77, the ‘DLF Privana South’ houses 1,113 4 BHK apartments and penthouses across seven towers.

The company said Indian diaspora bought one-fourth of the luxury apartments on offer in the city that houses some of the biggest multinational companies and startups.

The company issued full-page advertisements in newspapers in the National Capital Region on Monday to announce the sale.

“Thank you. We are humbled by your response. We are sold out,” the company said in the advertisement.

‘DLF Privana South’ will be part of a larger development, “DLF Privana”, spread over 116 acres in Sectors 76 and 77, the company said in the press release.

Aakash Ohri, joint managing director and chief business officer, DLF Home Developers Ltd, said, “To discourage bulk bookings, each buyer was allotted only one unit, with about 25% of the sales coming from Non-Resident Indians (NRIs), and a booking amount of ₹50 lakh (about $60,100), as opposed to the industry standard of ₹10 lakh (about $12,000).”

Global private credit flow into India’s real estate market is booming as the government’s policy to bolster infrastructure drives up prices in the sector.

About half of the more than $4 billion global private credit that entered the country from January to June this year was invested in the real estate sector, an analysis by global consultancy EY showed.

Demand from non-resident Indians (NRIs) is another factor driving up prices, with investments from this segment of the population rising steadily over the past five years, a report by real estate broker NoBroker showed.

Indian diaspora accounted for about 10% of India’s total real estate investments between 2019 and 2020, a figure that has risen to 15% currently, the report said, adding that by 2025, NRIs will comprise 20% of the Indian real estate market.

The S&P BSE Realty index surged about 70% last year, with some of the key constituents of the index, including Prestige Estate Projects Ltd, Sobha Ltd and DLF Ltd, soaring between 70-150%.

As the Indian economy shows strong growth and RBI maintains a steady repo rate, the housing market is experiencing a surge. The continuation of stable home loan rates is expected to further boost positive consumer attitudes, analysts said.

The recent spike in real estate demand follows a prolonged market downturn, particularly during the covid period, with commercial spaces also witnessing increased activity across the Asia-Pacific.