DLF goes the cheap home way
DLF plans to launch affordable residential projects in the range of Rs 20 lakh-Rs 25 lakh, which would be 10-15 pc lower than the existing market prices in respective areas.india Updated: Feb 02, 2009 22:20 IST
DLF plans to launch affordable residential projects in the range of Rs 20 lakh-Rs 25 lakh, which would be 10-15 per cent lower than the existing market prices in respective areas.
According to the company, property prices may drop by another 20 per cent in the coming months. It, however, did not rule out cost-cutting measures if the economic crisis continues. “There have been no lay-offs but people are moving on. If the economy does not improve, we will resort to cost-cutting,” said Rajiv Singh, vice-chairman, DLF.
DLF plans to launch the affordable residential projects to increase demand in the market. “With the launch of affordable houses over the next three months, we will be at inflation-adjusted levels of 1998,” said Singh. He, however, ruled out a price war in the real estate sector. “All our properties will continue to have facilities like power backup, parking and recreational spaces.”
The company has already raised over Rs 1,000 crore of debt through banks and eyes another Rs 2,000 crore by March-end.
DLF Assets Ltd (DAL), a fully-owned subsidiary of DLF Ltd, also plans to raise Rs 2,000-2,500 crore through the private equity route to pay the latter. DAL is the primary buyer of commercial properties constructed by DLF.