DLF and Oberoi Realty Set to Deliver Strong Sales in Q3 FY25, Says Morgan Stanley

2025-01-06 02:44:12

DLF and Oberoi Realty Expected to Post Strong Q3 FY25 Sales Growth: Morgan Stanley

Morgan Stanley projects a 20-35% quarter-on-quarter (QoQ) increase in sales for real estate majors DLF Limited and Oberoi Realty in Q3 FY25. The report highlighted strong pre-sales momentum, with standout performances at DLF’s Dahlias project in Gurugram, which recorded pre-sales of 150 units worth ₹120 billion (₹12,000 crore), and Oberoi’s 360 West project in Mumbai, which saw pre-sales of 13 units. Both were described as "positive surprises."

The investment firm noted a favorable outlook for India’s real estate sector, underpinned by robust sales momentum. “DLF and Oberoi are expected to show very strong sales momentum in Q3 FY25 with key launches, driving 20-35% QoQ growth in sales. DLF is projected to report a 60% year-on-year (YoY) growth in FY25, outpacing its peers,” Morgan Stanley stated.

DLF’s Dahlias: India’s Most Expensive Residential Project

Located on Golf Course Road in Gurugram, DLF’s Dahlias is touted as India’s most expensive residential real estate project, with a revenue potential of ₹34,000 crore—2.5 times that of DLF's The Camellias, according to PropEquity. Apartments in the Dahlias range from 9,500 to 16,000 square feet, with prices starting at ₹100 crore.

Oberoi’s 360 West: Luxury in Mumbai

Oberoi Realty’s 360 West is a luxury development in Mumbai’s upscale Worli neighborhood, known for housing celebrities and top business executives. The project further bolsters Oberoi’s position in the super-luxury real estate market.

Challenges and Prospects

DLF’s Q2 FY25 new sales bookings dropped to ₹692 crore due to delays in approvals for new launches. However, the company indicated a robust sales pipeline for Q3 during its October 2024 investor call.

Morgan Stanley also highlighted expectations for other developers:

• Macrotech Developers (Lodha): Projected pre-sales of ₹4,100 crore.
• Godrej Properties: Expected pre-sales of ₹5,300 crore.
• Prestige Estates: While fourth-quarter sales are assumed at ₹10,500 crore, FY25 growth is estimated at just 2%, reflecting a relatively subdued outlook.

With DLF and Oberoi Realty leading the charge, India’s real estate market continues to show resilience, driven by high-end and luxury developments.