India’s largest listed real estate developer, DLF, is taking bold steps to expand its rental business. The company has committed to spend ₹5,000 crore each in FY26 and FY27, signaling strong confidence in the future of India’s commercial real estate market.
The investment will be channeled into developing office parks, IT/ITeS SEZs, retail outlets, and hospitality ventures, which already make up DLF’s 43–44 million square feet (msf) of operating rental assets.
Targeting ₹6,700 Crore in Rental Income by FY26
In a post-earnings analyst call on August 5, Sriram Khattar, Vice Chairman and Managing Director of DLF’s rental business, revealed the company’s revenue ambitions.
“We will be investing in the ballpark of ₹5,000 crore this (financial) year and ₹5,000 crore in the next (financial) year. The exit rentals at the end of FY26 are expected to be around ₹6,700 crore,” said Khattar.
Out of this projected ₹6,700 crore in rental income:
₹5,900 crore is expected to come from DLF Cyber City Developers Ltd (DCCDL)
The remaining ₹750 crore will be from DLF and Atrium Place, a joint venture between DLF and global real estate firm Hines.
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A Solid Portfolio with Strategic Projects
DLF’s rental portfolio continues to grow with a balanced mix of:
Commercial office spaces
IT and IT-enabled services SEZs
High-end retail malls
Hospitality properties
This portfolio provides a stable and predictable stream of income, which is now being further strengthened by fresh investments.
What’s important to note is that rental earnings from several ongoing and upcoming projects will start flowing in from the current fiscal itself, giving DLF a revenue boost even before the major capex is fully deployed.
Betting Big on India’s Commercial Real Estate
The move comes at a time when demand for grade-A commercial spaces and retail hubs is rising, especially in key urban centers. By committing such a large capex over two consecutive years, DLF is positioning itself to capitalize on this demand surge and retain its leadership in the real estate sector.
This long-term bet on India’s economic and corporate expansion signals strong optimism from the realty major, especially in the rental income-driven vertical of real estate.
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