India’s biggest real estate developer, DLF, has scrapped plans to construct a mall on the mill land it had purchased in Lower Parel.
Instead, it will construct high-end luxury apartments — which cost between Rs 25,000 and Rs 30,000 a square foot — on the 17-acre plot that was owned by the National Textile Corporation.
“We work according to market conditions and since the commercial market is not doing well, we have decided to switch to residential,” said Rajeev Talwar, Group Executive Director, DLF Limited.
Talwar said plans are being prepared and work on the project will begin after the necessary sanctions are in place. The company refused to reveal details of the project.
The residential market is recovering from the realty slowdown, but the commercial sector continues to suffer due to excess supply, high vacancy and low rentals.
DLF had clinched the Rs 702-crore mill land deal in June 2005 by beating 12 other bidders. It had also announced that it would invest Rs 300 crore in a landmark retail-cum-entertainment centre on the property. These plans have now changed.
Indiabulls Realty Limited, Orbit Corporation Limited and Marathon Nextgen Realty Limited are already constructing luxury flats in Lower Parel.