Incredible But True - DLF's Luxurious Property The Arbour SOLD OUT in 72 Hours, Grossing Around INR 8,000 Crores

Record Breaking - The Arbour by DLF

The Arbour, a new development by DLF in Gurugram, sold all 1,137 apartments — priced at Rs 7 crore and above — for more over Rs 8,000 crore within three days of its debut.

The project sold all 1,137 apartments, priced at Rs 7 crore and above, for more than Rs 8,000 crore in less than three days after its debut. Top DLF executives told Moneycontrol in an exclusive video interview that 95 percent of purchases are end-users, including NRIs, CXOs, entrepreneurs, attorneys, and physicians, among others.

According to Aakash Ohri, Group Executive Director and Chief Business Officer of DLF Ltd., many end-users have liquidated their fixed deposits (FD) and mutual funds (MF) to invest in the project.

Ashok Tyagi, CEO and Whole-Time Director of DLF Ltd., said that the business continues to search for the ideal project in Mumbai and the "ideal land parcel free of any legal difficulties" in Noida.

"Those who have truly profited from DLF homes waited for it. It is really gratifying to see that individuals have converted their FDs and mutual funds into Arbour," he remarked.

He said there was a "frenzy" for the project due to "latent demand for a DLF product" and the fact that "we are introducing Arbour after nearly ten years in Gurgaon," as Tyagi concurred.

According to him, Gurugram has been awaiting this kind of premium home project from DLF for the last eight or nine years. "I believe there was substantial latent demand. In all honesty, I believe there will continue to be a market for high-quality, reasonably-priced goods created by very reputable developers. I believe the market has obviously turned towards developers with more credibility. This phenomenon would be seen not just in Gurgaon, but also, I believe, across the nation," added Tyagi.

He elaborated on the launch by stating that the apartment size exceeds 3,900 square feet. The project is anticipated to span 25 acres and include five towers.

"It is something that has satisfied the desires of the people. In addition to the demand from the NCR, we are inundated with support and demand from other regions, particularly from NRIs. "There has also been an enormous demand from corporations," Ohri remarked.

The property is built on a 16-lane road next to the major golf course in Gurgaon. The residences include four bedrooms, expansive patios, and a floor-to-ceiling height of about 3.4 metres. "It suggests opulence in every respect. And most crucially, it includes all the DLF amenities, such as clubs, etc.," he said.

Limit on capital gains deduction

When asked if the rush to book units could be attributed to the project being launched after three waves of Covid, as well as the fact that the deduction on capital gains for investment in residential property has been capped at Rs 10 crore in budget 2023, Ohri stated that the pandemic has increased demand for larger and better homes. Individuals have invested a significant portion of their wealth on real estate. It is really reassuring. It's in every Indian's genetic makeup," Ohri added.

On a capital gains deduction, he said that relates more to greater luxury purchases and he did not believe that would have an immediate effect on The Arbour.

Pre-formal launch sales

The project was 'pre-launched' on February 15, 2023, according to Ohri. That was the first time we offered the product to our channel partners, who serve as an intermediary between us and our clients.

"We had not constructed a high-rise in seven or eight years. It was a relatively new subsegment of Gurgaon for us, despite the fact that it is still all Gurgaon. We have also established a new standard for sales recognition. Typically, the industry recognises a pre-sale when the client submits an application and pays Rs 5 or 10 lakh. We made the announcement after we had collected 10 percent of the total sum, or more than Rs 80 lakh, and the clients had signed the sales agreement. We have also raised the bar for recognition, added Tyagi.

DLF plans to develop projects in for Mumbai, Chennai, Noida, and Goa

When asked whether the firm anticipates duplicating its performance in the next fiscal year, Tyagi said that the real estate giant plans to launch new projects. "Typically, when we release our annual results in early May, we also offer advice for the next year. Our updated sales predictions for the next year will be made public in early May."

About the One Midtown development in Delhi,

As for projects in Mumbai, DLF is seeking chances, according to Tyagi. "Our joint venture (JV) in Mumbai has encountered problems that will take some time to resolve. Nonetheless, we are evaluating other alternatives since Mumbai is the largest residential market in the nation."

Tyagi said, "Let's wait and see. We will provide the specifics after the transaction is finalised."

Tyagi said that the organisation has been hunting for the ideal land lot in Noida. "We have been unable to identify the ideal land tract, one free of legal concerns and other obstacles. Other than that, Noida is without a doubt a terrific market. "Regrettably, many of the area's prominent developers have fallen over the years."

This fiscal year, the corporation also has aspirations for Chennai. "We have something planned for Chennai, at one of the nicest places the city has to offer, in the centre of the city. "You will hear about it when we announce our market outlook for the following fiscal year," Ohri said, adding that it will be a luxury-plus development.

The real estate business has Goa in its sights. "Goa is part of the strategy as well. I do not know whether it will be included in this fiscal year.

Tyagi made it clear that despite the other new product releases, NCR and the Chandigarh Tricity would continue to be the primary emphasis. "We will undoubtedly continue to perform one-off development in the other sites," he said.

On Haryana's Deen Dayal Awas Yojana, for which work on the fourth floor has been halted,