DLF, a leading real estate developer, is set to expand its retail portfolio with the construction of three new malls in Delhi, Gurugram, and Goa, according to Sriram Khattar, Vice Chairman and Managing Director (Rental Business) of DLF.
In an interview with Moneycontrol, Khattar said that the company had paused mall expansion plans during the COVID-19 pandemic but has refocused on growth over the past two to three years.
“We are constructing three new malls now. One will be in Moti Nagar in central-west Delhi, another in DLF Phase-5 in Gurugram, and the third in Panjim, Goa,” Khattar said.
DLF currently operates around 5 million square feet of retail space, which is expected to grow to 6.3 million square feet once the new malls are completed. The malls in Delhi and Gurugram will be high-street plazas, while the Goa project will be a full-scale shopping mall. The high-street malls are anticipated to begin generating rental income between March 2025 and March 2026, with the Goa mall expected to be operational by March or April 2026.
In addition to these projects, DLF has started work on a flagship mall, the Mall of India, in Gurugram, targeting the city’s growing middle and upper-middle-class population. The mall is expected to open by 2028.
DLF’s Financial Performance
On July 25, DLF reported a 23% year-on-year increase in net profit, reaching Rs 646 crore for the quarter ending June 30, 2024. The company’s rental business also saw steady growth during this period, with a year-on-year increase of 10%. DLF’s consolidated profit for the quarter stood at Rs 470 crore, a 20% year-on-year rise.
Data Center Expansion
Khattar also discussed DLF’s growing presence in the data center sector. The company opened its first data center four years ago in Noida Sector 143 along the Noida-Greater Noida Expressway. Construction of a second facility is nearing completion, and DLF is awaiting the occupancy certificate (OC). The company has also signed an agreement for a third data center, with the option to develop a fourth at the same site.
The current tenant for DLF’s data centers is a Singapore-based company, which may lease additional facilities if needed. These data centers, known as edge data centers, have a capacity of around 25 megawatts (MW). The construction of the third data center is expected to begin in a few months.
Focus on Grade A++ Office Space
DLF is also concentrating on expanding its portfolio of Grade A++ office spaces, Khattar said, emphasizing the need for the real estate industry to differentiate between Grade A and Grade A++ commercial properties.
“Grade A++ properties are benchmarked against the world’s best in terms of physical and social infrastructure, safety, sustainability, and scalability. At DLF, we aim to be in this category,” Khattar explained.
DLF’s total office portfolio is approximately 45 million square feet, all classified as Grade A++. The company’s SEZ holdings account for an additional 14-15 million square feet, while its retail portfolio covers 5 million square feet.
Increased Leasing from GCCs
Leasing activity in India has seen significant growth, with Global Capability Centres (GCCs), multinational corporations (MNCs), flex space providers, and traditional IT/ITeS firms driving demand. Khattar noted that GCCs are increasingly leasing larger spaces, while flex space providers are accommodating the needs of smaller tenants.
International companies are particularly interested in properties that offer scalability to meet expansion needs over the next five to seven years, Khattar said.