DLF Rental Arm to Develop 75 Lakh Sq Ft Office and Retail Space in Gurugram

DLF’s rental arm, DLF Cyber City Developers Ltd (DCCDL), is set to invest ₹6,000 crore in constructing 75 lakh square feet of office and retail space in Gurugram. This expansion is aimed at meeting the increasing demand for commercial properties, particularly high-quality office spaces and organized retail developments. The company has already commenced work on new projects as part of its long-term growth strategy.

DCCDL, a joint venture between DLF and Singapore’s sovereign wealth fund GIC, is primarily responsible for developing and managing rent-yielding assets within the DLF Group. DLF holds a 67% stake in the joint venture. In its latest investor presentation for the third quarter of the current fiscal year, DLF announced that DCCDL has begun constructing 5.5 million (55 lakh) square feet of Grade A plus office space in the new phase of ‘DLF Downtown, Gurugram.’ This project is part of a larger commercial development aimed at attracting global firms seeking high-end office environments.

Alongside office space expansion, the company has also started the construction of the DLF Mall of India, Gurugram. The mall will cover 20 lakh square feet and will be positioned as a major retail hub in the region. As of now, DCCDL has already completed 3.7 million (37 lakh) square feet of commercial projects, and the ongoing developments will add significantly to its overall portfolio.

DCCDL has a substantial presence in India’s rental market, holding an operational rental portfolio of 40.4 million square feet. Of this, 36.4 million square feet is dedicated to office space, while 4 million square feet is occupied by retail properties. The company’s revenue from rental assets has been growing steadily, reflecting the increasing demand for commercial spaces.

Sriram Khattar, Vice Chairman and Managing Director (Rental Business) at DLF, stated that global companies, particularly technology firms, are drawn to India due to its skilled workforce and the availability of high-quality commercial spaces. He pointed out that businesses today require Grade A office spaces that prioritize sustainability, green initiatives, social infrastructure, and scalability. DLF has been focusing on delivering these requirements, sometimes even providing customized solutions to meet the long-term space needs of corporate clients.

The growing demand for office space in India is being driven by the expansion of Global Capability Centers (GCCs), which have been playing a key role in leasing activity across major cities. Large multinational corporations are setting up and expanding their operations in India, contributing to the strong demand for modern office infrastructure.

In the retail sector, Khattar noted that India’s economic growth and increasing urban population are fueling the expansion of organized retail. The country’s large middle-class and upper-middle-class segments are driving demand for modern shopping environments, leading to rapid growth in retail real estate. Over the past few years, international brands have also been increasingly entering the Indian market, further strengthening demand for high-quality retail spaces.

DLF has been active in the retail sector for several years, developing shopping malls and retail centers across key locations. The company has a strong pipeline of retail projects, with an additional 1.3 million square feet expected to be completed within this year. Over the next three years, DLF plans to add another 2-2.5 million square feet of retail space. Khattar emphasized that the company remains committed to delivering commercial and retail properties that cater to both Indian and international brands.

DCCDL’s financial performance has reflected the steady growth in the commercial real estate sector. The company’s rental income from office and retail spaces increased by 10% in the third quarter of the fiscal year, reaching ₹1,194 crore. Office space rentals contributed ₹962 crore, up from ₹876 crore in the same period last year, while retail rentals grew to ₹231 crore from ₹213 crore.

In terms of overall revenue, DCCDL reported a 9% increase in the October-December quarter, with earnings rising from ₹1,476 crore to ₹1,609 crore. The company’s net profit also saw significant growth, jumping from ₹434 crore to ₹941 crore. Over the years, the company has built a strong presence in key markets such as Delhi-NCR and Tamil Nadu. Since its inception, DLF has developed more than 185 real estate projects, covering a total area of over 352 million square feet.

.The company’s ongoing investments in office and retail spaces reflect its long-term strategy to capitalize on India’s growing demand for premium commercial real estate. By expanding its presence in Gurugram and other key cities, DLF aims to strengthen its position as one of the leading developer in the country’s real estate sector.