Homebusiness Newscompanies News

DLF management says home bookings will rise by 10% in FY23

DLF management says home bookings will rise by 10% in FY23

DLF management says home bookings will rise by 10% in FY23
Profile image

By Sonia Shenoy   | Prashant Nair   | Anuj Singhal  Jun 2, 2022 3:09 PM IST (Updated)

While the origin of the bounce-back may have been the pent-up demand in real estate, it is sustaining beyond the initial upward move, said DLF's Ashok Tyagi. "Industry is in a strong demand zone which is seen across geographies and segments."

While Delhi Land and Finance (DLF) is basking from the highs of record bookings, which it witnessed in the last fiscal, to the tune of almost Rs 7,300 crore, the real estate firm is expecting the number to grow by 10 percent or more in FY23.

Recommended Articles

View All

“We will clearly demonstrate a double-digit guidance. 10 percent is obviously the floor of double-digit, but frankly if the market sustains, and if the interest rate cycle doesn't get out of hand, there's no reason why the numbers should not be better than 10 percent,” said Ashok Tyagi, Whole-time Director, DLF, in an interview with CNBC-TV18.
While the origin of the bounce-back may have been the pent-up demand, it is sustaining beyond the initial upward move, said Tyagi. "Industry is in a strong demand zone which is seen across geographies and segments."
Tyagi believes there is some softening on the escalating commodity prices which shot through the roof in the past one year.
"If you look at a slightly broader perspective of the last 12 months, the commodity prices, specifically steel, really shot through the roof. Clearly for a new product launch today, vis-à-vis say 18 months back, the cost of construction is up by about 15 percent," he explained.
"The good news is that it does appear to be flattening out now. If the macro and the world situation sort of tends to be more stable, then hopefully, this trend may start softening and possibly reversing," he added.
Tyagi expects the office segment’s vacancy levels to be back to what it was during pre-pandemic times.
“On the office side, clearly from our conventional vacancy levels of 3 to 4 percent at the peak, our vacancy levels had increased about 15 percent. They have begun flattening out and reversing. They have already reversed to the extent of about 2 to 3 percent in the last quarter. We expect that in the next few quarters, hopefully, by the end of this calendar, latest fiscal, we should be back at the normal vacancy level that we used to have pre-pandemic,” he said.
Tyagi believes the retail segment has seen a V-shaped recovery with footfalls at about 90-95 percent of the pre-COVID period. While, the sales per footfall are clearly higher than pre-COVID, he said.
"Ironically, the luxury malls which is the Emporio and The Chanakya, those are witnessing even higher sales intensity than the normal malls, which clearly means that people are splurging in that sense,” said Tyagi.
Around 2 PM, the stock was trading 0.65 percent higher at Rs 339 per share on the BSE. On an year-to-date (YTD) basis, the scrip has fallen almost 14 percent.
JP Morgan remains bullish on the stock with a target price of Rs 490 per share. According to the investment advisory firm, the company's guidance on more dividend is positive.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Most Read

Market Movers

View All
Top GainersTop Losers
CurrencyCommodities
CompanyPriceChng%Chng