news

DLF says office market revival needs economic growth of 7%

NEW DELHI: DLF Ltd, India’s biggest developer, expects demand for offices to revive after growth in Asia’s third-largest economy accelerates to at least 7%, Executive Director Rajeev Talwar said.

Gurgaon, India-based DLF has slowed construction of 27 million sq ft of office and retail space, the company said in its annual report in July. More than 70% of new projects will be in the residential sector, with offices accounting for 16 percent, according to the report.

DLF’s profit declined for a fifth straight quarter after demand for property slumped as India’s US$1.2 trillion (RM4.12) economy expands at an estimated 6% in the year ending March 31, the slowest pace in seven years. Growth may accelerate to 8% in the following year, India’s Planning Commission forecast on Nov 4.

“We have to sustain growth between 7% to 9% a year before we see the commercial sector really coming up in demand,” Talwar said in an interview with Bloomberg-UTV. Until then, “supply is going to hold on and retail will only come up much, much later after that.”

DLF, the second-worst performer on the Bombay Stock Exchange Realty index this year, has gained 29%, lagging behind the 65% growth in the benchmark Sensitive Index. – Bloomberg LP
Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.
SHARE