DLF reduces Bangalore project price by 24 per cent
Business Standard, February 18, 2009, Page 4
Arun Kumar / New Delhi
DLF, the largest real-estate player in the country, has reduced the price of its residential project in Bangalore by around 24 per cent. The revised price of the project — Westend Heights in New Town, Bangalore — is less than Rs 2,100 per sq ft as against the October 2008 launch price of Rs 2,775.
The new price would be applicable with retrospective effect, so that customers who had booked flats in 2008 are benefited.
When contacted, a company spokesperson said DLF "is passing on the benefit of reduced input costs to give greater value to its customers. Our intention is to make it affordable for the common man”.
Another senior official of the company said the most interesting feature of the project was that bigger apartments carried lower price per sq ft.
On the issue of delay in other projects in New Gurgaon, the spokesperson said that the company had not put on hold any project where it had made commitments to customers. This included DLF New Town Heights and Express Greens. DLF would deliver the projects on time, he added.
DLF has launched new residential projects in Hyderabad and Bangalore, and will be launching more projects soon.
Business Standard, February 18, 2009, Page 4
Arun Kumar / New Delhi
DLF, the largest real-estate player in the country, has reduced the price of its residential project in Bangalore by around 24 per cent. The revised price of the project — Westend Heights in New Town, Bangalore — is less than Rs 2,100 per sq ft as against the October 2008 launch price of Rs 2,775.
The new price would be applicable with retrospective effect, so that customers who had booked flats in 2008 are benefited.
When contacted, a company spokesperson said DLF "is passing on the benefit of reduced input costs to give greater value to its customers. Our intention is to make it affordable for the common man”.
Another senior official of the company said the most interesting feature of the project was that bigger apartments carried lower price per sq ft.
On the issue of delay in other projects in New Gurgaon, the spokesperson said that the company had not put on hold any project where it had made commitments to customers. This included DLF New Town Heights and Express Greens. DLF would deliver the projects on time, he added.
DLF has launched new residential projects in Hyderabad and Bangalore, and will be launching more projects soon.
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3 comments:
I appreciate the bold step taken by the leading real estate developer DLF and in my opion it is the need of the hour and accepting the reality the others too should accept it and follow it.
I often used to wonder if what would be the fate of the projects launched in the last 6 - 9 months of time. There is a correction of up to 25% and up to 40% in end user market and investor driven market respectively at present. Though the developers lauched their projects in the new avtaar at lower rates emphisising on affordable housing in the last 3 - 4 months looking in to the present scenario of the market but none of them reduced the prices / rates of their earlier launched projects which were unsold.
I welcome the step taken by DLF and hope the others to follow soon.
As per the news published in Economic Times, DLF has slashed the prices by 32%.
Rawal Anil.
DLF slashes rates for Bangalore project by 32%
J Padmapriya, BANGALORE
WILL India's realty giant DLF lead a wave of residential price correction in Bangalore's upscale apartment market? The company, which virtually single-handedly created Gurgaon, has slashed its rates for an upcoming project in Bangalore's Bannerghatta Road by a whopping 32%. In a move that has surprised many, the rates have been cut to Rs 1,850 per sqft which was last quoting around the year 2000.
DLF, which relaunched the project in a new avtaar Westend Heights, originally announced it in October 2008 at a ticket price of Rs 2,750 per sqft. Realty trackers say the fresh offering is clearly a response to slowdown in offtake. The company had earlier proposed the project to be a mix of row houses and apartments. Now, it is offering 1,980 units over 27.5 acres. Clearly, the positioning has now changed to budget apartments. The price is even more surprising because local realty majors Prestige and Nitesh Estates have upcoming residential projects in the vicinity sporting Rs 3,200-3,500 per sqft price tag.
"It is a bold move by any realty player," a realty consulting firm head, who did not wish to be named, said.
Another consultant said that DLF brings in a large inventory of projects into the market. "Such a pricing will set benchmarks," he added.
"We are mainly passing on the benefits of efficiency derived from the new plans and input cost reductions which have kicked post the earlier launch. Although, we received reasonable response to our earlier launch, the current market calls for greater thrust in terms of value proposition and our current launch is an effort in that direction," a DLF spokesperson said. Customers who had booked the flats earlier will now be given the first choice of booking under the new plans.
Source:The Economic Times
DLF is market leader in Real Estate Sector. Slashing price of their project with retospective effect is something really surprising and shows that Developers are now realising the ground realty of today. Macro economics require such correction and clearing old inventory through such correction is definitely a welcome step.
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