DLF to kick off construction of 2 million sq ft office space in Gurugram

Realty developer DLF will commence the development work on 2 million sq ft of office space shortly in Gurugram, as it witnesses increasing demand for Grade A office buildings in the following year.

The managing director at DLF Rental Business, Sriram Khattar, told the media that the firm's under-construction buildings have already been completely leased. He said that the firm would pump in Rs 1,500 crore on the development of office space in downtown Gurugram and Chennai.

The company has proposed another block of approximately 2 million sq ft on which, once the permissions come in, the development should begin in the coming 2-3 months, according to Khattar.

As per the DLF Cyber City Developers (DCCDL), the rental arm of the company, leasing momentum has picked up in the past six to eight weeks. Two towers in Downtown Gurugram, each with 1.25 million sq ft are almost completed.

They expect to receive OC (occupation certificate) within this financial year. One tower is nearly completely leased, and on the other one, they have inked a non-binding contract for approximately 95% of the tower. It would leave very little stock in towers one and two. The design work on that is in an advanced stage, approvals are starting, and they should begin the construction on that in the first quarter of the coming calendar year.

DCCDL’s consolidated income reached Rs 1,123 crore in Q2 FY22 as against Rs 1,040 crore in the previous year period. The firm's renewal percentage, which used to be in the 90s, has now dipped to 85%.

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