DLF's Comeback to Mumbai! Confident But not Over Confident, says MD

After a failed attempt over ten years ago, Gurugram-based real estate behemoth DLF is getting ready to reenter Mumbai, India's largest housing market, this year. The management of the company says it is cautious but confident.

Through a slum redevelopment project in Andheri (West), DLF has teamed up with the Trident Group to establish what it refers to as a "luxury" residential complex. On six acres of land, the project's initial phase is anticipated to begin.

The saleable area of this phase is anticipated to be approximately 9 lakh square feet, while the plot's overall development potential is anticipated to be approximately 3.5 million square feet. According to the sources, the project has gotten the majority of the permissions. There is still one waiting from the Maharashtra Real Estate Regulatory Authority (MahaRERA).

While being a relative outsider to the Mumbai real estate market amid intense competition, DLF's joint managing director and chief business officer, Aakash Ohri, told reporters in Gurugram that the company is still confident about its offering in Mumbai despite market concerns about inventory buildup in some higher-priced categories.

"The market sees us differently, and we are not part of that ecosystem yet...Despite us being the market leader, we recognise that every market is different. We are confident, but we are not over-confident (about the Mumbai market). In the 3-4 sq km area near our project, there are 7,000-10,000 new homes coming up in the next few years. Everyone is our competition. To be cautious cannot be misconstrued to having a doubt," said Ohri.

"We are looking at it (inventory glut) as a product story...As for real estate euphoria, there are lots of reasons for euphoria in real estate to come about, and it is good to a point to propel the market, but it also has to come to a cruise. As it is, pricing for super luxury assets is inelastic. We have to tread the market cautiously, and we cannot be a maverick. Despite concerns over spending going down, residential assets remain a priority spend," Ohri added.

With sales momentum slowing in marquee projects in most cities, including Mumbai, some brokerages and market watchers have voiced fears that the post-pandemic real estate cycle may be nearing its peak. However, an inventory "glut" or dampening exhilaration can be a part of a bigger story, Ohri pointed out.