DLF’s re-entry into Mumbai was seen as a litmus test for the Gurugram-focused realty firm. While Mumbai is a high-value real estate market, it is also intensely competitive given the presence of large, established developers. A healthy response to phase one of its maiden project, The Westpark in Mumbai’s Andheri, suggests DLF has passed the test, for now.
The project, a slum rehabilitation development, is being executed in joint venture with the Trident Group. Housing units worth ₹2,300 crore in this project were fully sold out within a week of its July launch, contributing significantly to DLF’s pre-sales for the September quarter (Q2FY26), which jumped over sixfold year-on-year to ₹4,332 crore.
Absorption at its existing ultra-luxury project, The Dahlias, also exceeded expectations. Eighteen units were sold in this project in Q2, taking cumulative sales to 121 units, with the current average selling price ranging between ₹1.25 lakh and ₹1.5 lakh per sq. ft on a carpet-area basis.
DLF h₹21,000–22,000 crore”>as retained its FY26 pre-sales guidance of ₹21,000–22,000 crore, even after pre-sales doubled year-on-year to ₹15,757 crore in the first half of the year, led by The Westpark in Q2 and Privana North in Q1. The company appears on track to meet this target. Over the next 18 months, it plans to launch new projects in Goa (likely in Q3/Q4FY26), Gurugram (Arbour Phase 2, next phase of Privana, and Hamilton Court), Panchkula, and phase two of The Westpark in Mumbai. DLF’s medium-term launch pipeline stands at around ₹60,000 crore.
Housing demand in Gurugram remains robust, supported by demand from non-resident Indians and there is growing preference for quality residential options, both for ownership and rental purposes, the management said. However, Nuvama Research cautions that housing demand and price growth in the Gurugram market may moderate ahead, given affordability constraints.
DLF is also evaluating an entry into Noida and further expansion in the Mumbai Metropolitan Region, with new business development deals under discussion in both markets. Yet, concerns of softening housing demand in Mumbai persist. Government data cited by Antique Stock Broking shows property registrations in Mumbai declined 10% year-on-year and 3% month-on-month in October, while registrations across Maharashtra fell 6% year-on-year. Even if this dip proves temporary, DLF faces stiff competition from peers such as Lodha Developers, who remain more aggressive on business development.
On the commercial front, occupancy levels stayed strong at 99% in office and 98% in retail spaces. DLF received the occupancy certificate for phase one of its 2.1 million sq. ft Atrium Place project, while phase two is expected to be completed by Q1FY27. Rentals for Midtown Plaza and Summit Plaza in Delhi are likely to commence from Q3FY26.
Overall collections rose just 2% year-on-year in H1FY26 to ₹5,470 crore, subdued due to construction delays. The management expects momentum to improve in H2 and aims to collect ₹13,000-14,000 crore in FY27. DLF remains in a net cash-positive position, though potential demand fatigue in key markets bears watching.
DLF’s shares are down 8% so far in 2025, in line with the Nifty Realty index. The company’s long-term growth prospects are already reflected in its valuation, according to Nomura Global Markets Research.
“Our current valuation at about 20% premium to net asset value prices in about 8% pre-sales CAGR (compound annual growth rate) over the next 13 years, which we believe is adequate (versus FY26E flat growth guidance),” said a 2 November Nomura report.
