According to a senior executive, DLF plans to build a shopping area devoted to opulence, for which DLF will invest Rs. 200 crores to expand its mall at Vasant Kunj in the capital of the of the country. An area of 3,00,000- 4,00,000 square feat will be built as a luxury retail area next to DLF Promenade and the realtor will also apply for approval from the Delhi Development Authority (DDA).
The executive shed a light on the increasing demand for luxury retail post Covid. This surplus place will help the group in getting international and national brands. It will also give a push to its retail rental portfolio.
Rentals of properties housing luxury brands are generally double when in comparison with mass priced lifestyle brands. DLF is planning to double its retail portfolio and add about 5 million square feet, in the next 5-6 years with an investment of about Rs. 3000 crores.
The DLF mall at Vasant Kunj is spread across 500,000 square feet having tenants of international and domestic luxury brands. Sriram Khattar, MD of rental business of DLF said that the realtor is exploring to expand the Vasant Kunj Mall based on the latest guidelines of local authorities, market absorption and related issues. The average rent at Delhi Promenade is Rs. 190 per square feet per month while at DLF Emporio, it goes as high as Rs. 400 per square feet. The upcoming project will have a rental in the range of Rs. 250-300 per square feet per month. This would increase the company’s rental income by Rs. 100 crore a year.
The executive said that this project will build up its presence in central and South Delhi with malls in Chanakyapuri, Saket and Vasant Kunj. The group is also chalking out a plan to build a retail space in its residential project in West Delhi’s Moti Nagar.
DLF is also coming up with malls in Goa, Gurugram and high streets of Gurugram. It will also launch upcoming residential and commercial projects this year which will have retail space as well.