New Delhi’s real estate OG, DLF, is riding the wave of India’s growing appetite for posh homes — and the cash is rolling in.
Last year, its luxury Privana project pulled in $1.5 billion in just six days. Nearly 2,000 flats vanished in two 72-hour sales frenzies. That’s $10 million an hour.
No wonder DLF’s stock is up 19% this year and a staggering 281% over the past five years, crushing the Nifty 50’s 13% rise in 2023.
A 70s show…that is still running
DLF has been shaping New Delhi’s luxe skyline since the 1970s, building colonies where booking costs for flats can be five times higher than regular ones.
Now valued at $25 billion, it is comfortably India’s largest real estate player — and analysts love it. Of the 16 covering the stock, 15 give it a “buy” rating, LSEG data shows.
Indian brokerage Motilal Oswal changed its rating from “neutral” to “buy” in October, thanks to soaring sales, rising prices, and higher cash flows in the second quarter of the year.
Y tho? Because rich Indians can’t stop splurging. Luxury homes priced at 10 million rupees ($118,000) or more made up 41% of total sales in the first half of 2024, up from 30% in the same period last year, according to Sobha Realty.
And this trend isn’t just an overseas money play — DLF’s filings reveal that 75% of Privana buyers were ultra-rich locals and India’s aspiring “upper” middle class and not the NRIs.
Any red flags?
Yup. Deep red ones too.
DLF’s past is messy. From corporate governance scandals to alleged land grabs, the real estate giant has a long rap sheet. But none of it has stopped the stock from delivering big $$$$ for investors that range from influencers to India Inc CEOs.
With new projects in Mumbai and Bangalore, and a cleaned-up regulatory environment thanks to the Real Estate Regulatory Act (to throw off any China-like mess), DLF is perfectly positioned to cash in on India’s luxury boom.
Legacy player meets new wealth. That’s the DLF story — and it’s far from over.
