Real estate developer DLF will invest ₹200 crore to expand its mall at Vasant Kunj, in the national capital, with a dedicated shopping area for luxury products, according to a senior executive. The company plans to develop 300,000-400,000 sq ft of space as a luxury retail area next to DLF Promenade and will apply for approvals from the Delhi Development Authority (DDA), the executive told ET.
“Demand for luxury retail has grown post Covid and this additional space will help us in getting international and domestic luxury brands,” the executive said. “It will also give a boost to our retail rental portfolio.”
On an average, rentals for properties housing luxury brands are nearly double compared with mass-priced lifestyle brands. DLF is looking to more than double its retail portfolio and add about 5 million sq ft in the next 5-6 years with an investment of about ₹3,000 crore, the executive said.
The DLF mall at Vasant Kunj is spread over 500,000 sq ft with international and domestic luxury brands as tenants. “We are exploring the various aspects of expanding the Vasant Kunj malls based on the latest guidelines of the local authorities, market absorption and related issues,” said Sriram Khattar, MD, rental business, DLF.
The average rental at Delhi Promenade is ₹190 per sq ft per month while at DLF Emporio, the average rental is around ₹400 per sq ft.
The upcoming mall is likely to have rentals in the range ₹250-300 per sq ft per month, which would help the company increase its rental income by about ₹100 crore a year.
“This will strengthen our presence in central and south Delhi with malls in Chanakyapuri, Saket and Vasant Kunj. In addition, we are planning retail space in our residential project in West Delhi’s Moti Nagar,” the executive said. Additionally, DLF has planned malls in Gurgaon and Goa and high streets in Gurgaon in addition to retail space in its upcoming residential and commercial development, majority of which will be launched this year.
Source : ET