Defying gravity

Slowing home sales and a plummeting realty index are of little relevance to India's largest listed real estate developer DLF at the moment. The BSE Realty Index, outpacing the decline in the Sensex, has shed 15 per cent in the past month as a 9 per cent drop in 2024 residential sales across the top nine cities is fueling concerns of a broader slowdown. But in the eye of the storm, DLF has pulled off an extraordinary feat. It has surpassed its full-year FY25 booking target in just nine months, thanks to Dahlias, its ultra-luxury project in Gurgaon. With 173 units sold at an eye-watering average price of Rs 70 crore each, DLF is undoubtedly flexing its pricing muscle. But how did it do it? First and foremost, India's wealthiest buyers are still pouring money into premium real estate. Even as residential sales dipped last year, the total sales value surged 16 per cent, largely driven by high-net-worth individuals (HNIs) investing in luxury housing, according to ANAROCK. DLF has positioned itself as the biggest beneficiary of this trend, leveraging its brand and exclusivity to command record-breaking prices. But does this signal true pricing power, or is it simply a case of liquidity