DLF, India’s largest real estate firm, is set to invest ₹6,000 crore in expanding its premium office and retail portfolio in Gurugram. Through its rental arm, DLF Cyber City Developers Ltd (DCCDL), the company is constructing 7.5 million sq ft of Grade A+ commercial spaces to meet rising demand for sustainable, high-quality workspaces and retail hubs.

Massive Expansion in Office and Retail Spaces

According to DLF’s Q3 investor presentation, DCCDL has begun constructing 5.5 million sq ft of Grade A+ office spaces as part of the new DLF Downtown, Gurugram phase. Additionally, the company has started building DLF Mall of India, Gurugram, which spans 2 million sq ft. So far, 3.7 million sq ft has been completed.

With a 40.4 million sq ft operational rental portfolio, DCCDL is a dominant player in India’s commercial leasing market. Of this, 36.4 million sq ft is office space, while 4 million sq ft is retail real estate. This latest investment strengthens DLF’s commitment to Grade A++ office spaces that prioritize sustainability, social infrastructure, and scalability.

Global Firms Fuel India’s Office Demand

As global corporations and technology firms expand their operations in India, demand for high-end commercial spaces continues to grow. “Global companies, especially technology firms, are attracted by high-quality human talent and world-class commercial spaces,” said Sriram Khattar, Vice Chairman and MD (Rental Business), DLF. “These companies look for Grade A++ office spaces that are rated high on sustainability, green initiatives, social infrastructure, and scalability. DLF does its best to provide these and, sometimes, tailor-made solutions for their long-term space requirements.”

The rising presence of Global Capability Centers (GCCs) has been a key driver of office leasing in major Indian cities. According to real estate consultants, India’s top seven cities recorded historic highs in both gross and net leasing of office spaces in 2024, fueled by domestic firms and multinational corporations.

Retail Growth and Strong Demand from Global Brands

On the retail front, DLF is strategically expanding its shopping mall portfolio to cater to the rising aspirations of India’s growing middle and upper-middle-class population. “India is one of the fastest-growing economies with a huge middle class and upper middle class aspiring to move up the chain economically,” Khattar said. “This, coupled with the high influx into urban centres, would result in robust growth in retail, especially organised retail.”

DLF is set to deliver 1.3 million sq ft of new retail space this year, with an additional 2-2.5 million sq ft in the next three years. The company’s strong supply pipeline aims to attract both Indian and international brands, ensuring that DLF remains a preferred partner for retailers.

Surging Rental Income and Financial Growth

The expansion aligns with DCCDL’s strong financial performance, as the company’s rental income grew 10% to ₹1,194 crore in Q3 FY24. Office space rentals contributed ₹962 crore, up 10% year-on-year, while retail rentals rose to ₹231 crore from ₹213 crore. DCCDL’s overall revenue jumped 9% to ₹1,609 crore, and net profit surged from ₹434 crore to ₹941 crore during the same period.

With 220 million sq ft of development potential across residential and commercial segments, DLF remains at the forefront of India’s real estate market. As companies seek premium, sustainable office spaces and global retailers expand their footprint, DLF’s ₹6,000 crore investment positions it to lead India’s evolving commercial real estate landscape.