Since unbiased flooring and luxurious housing has seen good demand, DLF is as soon as once more planning to extend costs selectively throughout its residential enterprise. The agency has already raised costs thrice between November final yr and March 2021 on unbiased flooring in Gurgaon, moreover putting off some reductions on Camellias.
Though the true property developer didn’t supply particulars on the merchandise which will see a value hike, it has indicated that the rise is more likely to be beneath 5% within the present fiscal. DLF is eager on revamping its premium and mid-income housing, which has been persistently gaining homebuyer’s curiosity within the final 8-12 months.
At its quarterly earnings name on Tuesday, DLF mentioned it’s “trying” at rising costs “selectively” throughout the residential product portfolio relying upon market demand. On a weighted common foundation, the worth enhance may translate into “sub 5%”, which the agency expects to carry on throughout FY22. In its Q1 FY22 outcomes presentation additionally the corporate mentioned, it’s exploring a “even handed value enhance according to market acceptability”.
DLF launched unbiased flooring in Section-3 (Gurgaon) at Rs 11,000 per sq ft in November final yr. Later in February 2021, costs had been raised to Rs 12,500 per sq ft, translating right into a progress of 14% on a like-to-like foundation between November 2020 and March this yr.
In March 2021, the corporate launched unbiased flooring in Section-1 at a value of round Rs 15,000 per sq ft. Nonetheless, it emphasised that the rally was largely pushed by the mission’s strategic location. DLF has additionally slashed reductions on the ultra-luxury housing, Camellias, which is about 4-5% and interprets to an improved restoration of Rs 1,500-2,000 per sq ft.
The corporate mentioned it obtained an encouraging response on unbiased flooring throughout DLF metropolis and New Gurgaon vindicating product demand and acceptability. New merchandise, which embrace plotted improvement in Gurgaon, recorded gross sales reserving of Rs 542 crore for 0.5 million sq ft (MSF) in Q1 FY22. Up to now it has booked 1.3 MSF of area within the mission unfold over 1.5 MSF.
Camellias witnessed sustained demand. In April-June, it reported a gross sales reserving of Rs 330 crore for 0.1 MSF. It has a complete space of three.6 MSF, of which up to now 2.4 MSF has been booked. The housing mission has posted constant double-digit gross sales within the final 4 quarters.
DLF will open gross sales reserving for its flagship premium luxurious mission, Midtown in central Delhi, within the second half of FY22. At current, the corporate is busy with RERA approvals for the high-rise condos. The mission measurement is 8 MSF, of which 2.1 MSF can be delivered by H2 FY22 and the remaining 6 MSF after FY24. Midtown’s complete gross sales potential is Rs 12,000-15,000 crore.