Indian real estate developer DLF forecasts that its retail portfolio will continue to show steady growth. This growth is driven by increased store footfall due to the trend towards premiumization, as well as consumption growth at an annual rate of 11–12 percent. New mall projects also serve as an additional factor supporting rental income.
Pushpa Bektar, Group Executive Director and Head of DLF Retail, told Business Standard that consumers' desire for higher quality brands, better products, and experiences is stimulating traffic above pre-pandemic levels and increasing the average spend per visitor.
According to Bektar, despite potential periodic moderation in luxury spending, the fundamental demand for quality retail remains strong. The company recently unveiled Midtown Plaza in Moti Nagar, located in West Delhi, which is positioned as a local shopping center.
This plaza is DLF Malls' first neighborhood center and spans approximately 280,000 square feet, serving a radius of nearly 2.5 million residents in West Delhi. Bektar emphasized that the plaza concept is a differentiated product focused on convenience and improving the quality of life for residents in densely populated areas.
Speaking about development plans, Bektar noted that with three new projects—Midtown Plaza, Summit Plaza, and DLF Promenade in Goa—the company aims for a 20–22 percent revenue increase. Furthermore, another major project, Mall of India in Gurgaon, spanning 2 million square feet, is under development.
In the first quarter of the 2026–27 fiscal year, DLF's rental income increased by 9 percent, while the total portfolio of leased spaces, amounting to 49.6 million square feet, reached a 95 percent occupancy rate. The company expects buyout revenue to be between 73,000 and 75,000 crore rupees in the 27th fiscal year and forecasts an average double-digit growth in net operating profit over the next four to five years in its rental business.
She added that investments are being directed both toward upgrading existing properties and adding new formats, such as Midtown Plaza and Summit Plaza. This allows for the creation of a balanced base for stable rental income, combining established premium assets with new formats geared towards local communities.
