arti

Source: -Business Standard, New Delhi

Country’s largest real estate developer DLF has cut its prices in its on-going projects in Chennai and Bangalore by 20-30 percent, and has extended this benefit also to those customers who had earlier bought homes in these projects.

Existing customers, who have paid more than the revised apartment price, will be eligible for refund, although there may not be many such cases, as most have made only part payment, the company said.

DLF’s decision, which international property consultancy firm DTZ described as “bold”, is likely to force other realty companies to bring down prices. DLF may also bring down prices of its projects in other cities as well, a company official said.

DLF’s move is similar to what country’s largest bank, State Bank of India, did in the home loan and auto loan market. The SBI has slashed home loan rate to 8 percent for all new borrowers for the first year of the loan term, fuelling a turf war with private sector mortgage lenders. But unlike DLF, the bank didn’t extend this facility to its existing customers.

DLF has revised it prices downward by 17 percent to Rs 2,650/sqft in its Gardencity DLF OMR project in Chennai, comprising 3,500 apartments, of which 2,000 have already been sold.

The company has slashed prices by 32 percent to Rs 1,850/sqft in Bangalore’s Bannerghatta Road. The Bangalore project has a total of around 2,000 apartments. The company also recently launched a housing project in Hyderabad at Rs 1,850/sqft, which is substantially lower than the market price.

A DLF spokesperson said the company’s decision to reduce prices was in response to the changed conditions in the real estate sector due to unprecedented global events and changes in the raw materials costs.

DLF’s latest move is in line with the thoughts expressed by its vice chairman Rajiv Singh at the quarterly earnings announcement almost a month ago. He had said that the property prices would fall by 15-20 percent. He had also highlighted the need to take the lead and quickly turn in products that are required in the current market.

“By the time one gets ready with products, the business cycle has already turned and there are not many takers for such products,” he had said.

Several analysts have been saying a 30-35 percent decline in prices was essential to spur demand for property. Customers, wary of high property prices and finance cost, and uncertainties regarding their own future due to poor job market scenario, slid into the wait and watch mode late in the second half of last year. As sales dried up, credit became expensive and private equity funds vanished, property firms faced major pressure on their cash flow.

Developers though have been slow in reacting to the market changes. DLF’s latest decision to cut price can potentially influence the entire market. “DLF’s bold move will prompt other companies as well to reduce prices,” said DTZ India CEO Anshul Jain.

DLF’s closest rival, Unitech, which hasn’t launched any new project of late, said it is still watching the market. Unitech head of strategy and planning R Nagraju said company’s new launches will surely be at lower price points.

DLF’s move to extend the benefit to existing customers in ongoing projects is being seen as particularly important. Most realty companies had, so far, refused to bring down prices in existing projects saying that they will have to cut prices even for those apartments already sold.

DLF, as all other realty players, has been facing pressure on sales and has put construction on more than half of its commercial projects on hold due to lack of demand. The company reported a 69 percent decline in profit in December quarter

abk

it was launched at 2800/- only and as usual calling it pre launch price, just a gimmick and poor buyers who thinks he is getting a discount is duped. here is a post from another forum

01-10-2008, 12:30 PM
kumarramu *
Member Join Date: Jul 2007
Location: USA, NJ
Indian City: DEL
Posts: 318

OMR-Sholinganallur: DLF Garden city
I heard that DLF is going to launch township project in Chennai, near sholinganallur for prelaunch price of Rs.2800/

Any one enquired or booked it?

I got more information, but not checked yet...

We would like to bring to your kind notice that India's leading builder DLF is about to launch an integrated township on OMR in Chennai. The project will have apartments - 2 / 3BHK / school / hospital / mini mall / guest rooms / 125000 SFT Clubhouse with indoor and outdoor games facility - among many more luxury amenities.

DLF group, the leading real estate developer in India, with over 224 mn sq ft of existing development and 738 mn sq ft of planned project. The group which has set standards in real-estate industry with mega-township projects like 3000 acres DLF city. After NCR the developer has entered other markets in the country with successful launches in Kochi and Kolkata. The same expertise and technical finesse is now being bought in Chennai.


Project details:
Total land extent of 58.5 acres.
32 blocks with Stilt+19 floors, Basement and surface car parking.
4-6 flats per floor.
4 apartment types
Type I ( 2 bedroom 2 toilet ; area around 1200 sft )
Type II (3 bedroom 2 toilet ; area around 1480 sft ),
Type III (3 Bedroom 3 Toilet ; area around 1680 sft )
Type IV ( 3 bedroom 3 toilet with servant quarter ;area around 1980 sft )
Each block will have 3 lifts including 1 with stretcher duty
Project Location: The project is tucked away in neat corner of Semancheree, on OMR. Behind Sathyabhama University. Convenient to the entire IT destinations TIDEL PARK / SIPCOT IT PARK Siruseri / ASCENDAS / Infosys / Wipro / TCS / Cognizant etc.



Amenities:
The project will have a school by the Padmaseshadri institutions- who run some of the finest schools in Chennai.
A Mini mall with department store, washing facility.
A health care centre run by Fortis group. It will also feature a ten bed mini hospitals for medical emergencies with ambulance facility.
A top end clubhouse of 125000 sft ( largest in South India ) with all modern facilities. It will feature 75 room guest house ( 4-5 star category ).Among the facilities the most notable is the availability of trained servants / cooks / drivers for household.
It will also have tenant service by DLF as per client choice.
Completion: The project completion will be 24-30 months from launch. The booking amount will be 15% of total property cost.


Price: The expected launch price for Phase 1 ( first 700 flats ) is around 2800-3000/sft. A premium of Rs. 100/sft will be applicable for flats facing landscaping. Floor rise of Rs. 30/sft will be applicable from 4th floor onwards. This pricing is nearly Rs. 700- Rs. 1000/sft less compared to other similar projects on OMR.

Approx 2bhk will start Rs. 35L onwards and 3BHK will start Rs. 45L onwards.


Booking procedure: You need to pay Rs. 500000/- ( RS. 5 lacs ) in favour of DLF SOUTHERN HOMES PVT LTD. Please indicate the flat area / premium or non premium pacing / floor range so that a tentative booking can be done in this soft launch scheme. The exact unit can be freexed once the plans are available.

Please let us know if you would be interested in the project.In that case pl reply to me so that once we have complete details we can get back to you with exact pricing / plans etc. Also pl let us know if you have any friends / colleagues who would be interested in the same.

Best Regards,
Thanks & Regards
Jai Ganesh.A


official website:
http://www.dlf.in/wps/portal/homes?j...i/overview.jsp

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