The company spends Rs 12,00-15,00 crore annually to develop commercial properties across its existing markets.
"For the first phase of development in Chennai, the firm plans to invest Rs 1100 crore; of this, around Rs 700 crore has already been incurred," said Khattar. DLF is currently constructing its second-largest project in Chennai with an investment of approximately Rs 5,000 crore.
DLF Downtown, a 6.8 million-square-foot office complex, is expected to be completed by 2026 and 2027.
"Phase 1 of DLF Downtown at Taramani is now in the advanced stages of completion and will contribute to incremental revenue," he added.
DCCDL, the Rental arm of India’s largest real estate company DLF today announces the completion of 15 years of its business operations in Chennai.
The company anticipates that Chennai commercial properties will contribute roughly 25% of its rental income in the next four years. DLF generates rental income from its retail and commercial assets under DLF Cyber City Developers (DCCDL) and the DLF portfolio. DCCDL already operates a 7.4 million-square-foot IT SEZ in Manapakkam, Chennai, generating rental revenue of about Rs 600 crore.DLF's rental branch, DCCDL, has begun restructuring its rent-yielding commercial assets into a Real Estate Investment Trust (REIT) form. "We are internally taking steps to be REIT ready," he said.
DCCDL has rent-yielding commercial assets, including offices and retail properties, of about 40 million square feet, and expects the entire portfolio to reach around 55 million square feet within four years.
"In DCCDL, we expect rental income of approximately Rs 4000 crore for the current fiscal year and are on track to achieve our guidance," said Khattar.
More than 40 million sq. ft. of DLF Rental portfolio is US Green Building Council LEED Platinum and LEED Zero Water Certified, the highest in the World from a portfolio size point of view.DLF and DCCDL, both have been awarded 5 Stars ratings by GRESB.
According to Colliers, At the close of 2022, office leasing in India crossed 50 mn sq ft, of which 14% corresponded to leasing by flex players, highest in any year.
As the market peers into 2023 amidst a looming global recession, and ongoing layoffs by tech companies, they are likely to increase their space take up in flex spaces as they offer flexible lease terms and aid cost control.