DLF’s shares soared on March 16 after the company announced record-breaking pre-sales of over Rs 8,000 crore for its luxury project, The Arbor, in Gurgaon.

Shares of DLF were trading at Rs 356.55 on the National Stock Exchange at 11:30 am, up 3.21% from the previous close. The stock also hit an intraday high of Rs 360.65.

“The Arbour, which marks DLF’s foray into the micro-market of Gurgaon’s golf course expansion, was sold out even within three days of its launch,” the property developer said in a bourse filing.

According to exchange filings, the luxury community spans over 25 acres and features five towers as high as 38/39 stories. It comprises 1,137 identical 4 BHK apartments priced from Rs 7 crore each.

DLF Group executive director and chief commercial officer Aakash Ohri also revealed that more than 95% of buyers were individuals who purchased The Arbour for their end use.

Many experts also believe the sector’s boom in luxury homes can also be attributed to tax changes in the 2023-2024 union budget.

Recent changes in the tax code have resulted in a capital gain deduction capped at Rs 10 crore from residential property investments. This means that individuals who sell a residential property and earn a capital gain of more than Rs 10 crore can only claim a deduction of up to Rs 10 crore if they invest this amount in another residential property.

Previously, there was no limit to deductions, so this change may encourage individuals to complete transactions before the end of the fiscal year to take advantage of the previous rules.

The company’s residential business performed strongly in the third quarter and posted one of its highest quarterly new sales bookings, up 24% year-over-year.

The property developer’s net profit also rose 27% year-on-year to Rs 358 crore rupees in the third quarter, with consolidated revenue increasing 16% to Rs 1,363 crore.

Strong growth in housing demand, supported by a resilient economy, also helped the company reduce its debt in the quarter.