DLF Plans to Launch Mid-Income Housing Projects
In recent times, affordable housing has got several government incentives. Many of the developers are focusing on building budget homes in suburbs and the metro cities. India’s largest real estate developer by market value, DLF Ltd are making up plans to launch mid-income projects, in Rs 60-80 lakh price category. The demand for homes in the affordable category remains comparatively better in a lukewarm market.
DLF had adopted the plan to hold back on selling under-construction projects and sell only when a project is almost completed. Buyers interest have visibly emerged towards ready-to-move-in homes. The residential segment is witnessing early revival across markets with increased interest in the mid-income and affordable segments.
DLF has been looking to create value by unlocking its land bank. They have commenced planning of scaling up launches and offering a bouquet of diversified offerings across segments with greater value proposition in line with the market-leading to a healthy sales revival. They are also planning to launch affordable housing projects in Gurugram and Chandigarh Tricity as of now. These projects spread across 10 million square feet which could earn revenue of around Rs 5000 crore. They would also include projects with low-rise buildings and can be carried out quickly.
It’s a relatively new strategy from what DLF has done in the past few years. DLF’s commercial office assets under its rental portfolio will continue to contribute significantly to the growth of the company. DLF has initiated the development of two new office projects ‘Downtown’ in Gurugram and Chennai. The retail segment witnessed a significant adverse impact owing to the Corona Virus pandemic and the resulting lockdown. They expect a gradual recovery of things to normalcy, said an official of DLF Ltd.
DLF has revamped their entire construction engine. They said that it’s very important to be able to construct and develop in an extremely cost-effective way in most of these low-priced products. The company has changed its strategy to bringing some liquidity and by selling before launch, they can monetize the land and mid-income also gives them the option to bring liquidity even though there might not be much profit. They may not make humongous money but surely this is an overlooked market.
Source : Live Mint