Real estate developer DLF is learnt to be gearing up for a price war in Mumbai’s premium real estate segment.
The country’s biggest developer by market capitalisation plans to launch the project in central Mumbai by the first quarter of 2011. The developer will launch the project at rates that may be 15-20 per cent lower than competitors, two people familiar with the development said.
According to industry sources, DLF will launch the project for around R20,000 per square foot, while the rates quoted by some developers in the area is around R25,000. Lodha Developers, which is launching the world’s tallest residential tower is quoting rates of around R35,000 for some floors.
“We are yet to get clearance from the government for the project and hence we have not decided on pricing yet,” a DLF spokesperson said. However, real estate consultants in the city said that the company has already conducted a market research to get an idea on rates. The company has a set of registered real estate consultants who have been approached for the market research.
“DLF is pondering on offering rates that would attract more buyers,” said a real estate consultant.
Market trackers said it would be difficult for other developers to compete with DLF on the price turf. This is mainly because DLF had bought 17 acres of the National Textile Mill land, where the project is coming up, four years ago, at R702 crore while land prices have escalated substantially since then.
According to a senior DLF official, pricing will depend on market conditions during the launch.