DLF plans value housing to expand market reach, unlock land banks
Real-estate major DLF Ltd plans to launch Value housing projects under a distinct brand, joining the growing list of industry players that are eyeing the affordable housing segment to boost demand. The company will launch 3-4 million sq ft under this new category, which it has classified as a lower extension of premium housing. According to a presentation by the company to analysts, its value housing projects will come up in Chennai, Bangalore, Hyderabad, Chandigarh and Gurgaon. While the company has kept the pricing under wraps, industry sources said it could be in the range of Rs 1,700 per sq ft. However, this could not be independently confirmed with the company.
During the analyst call, DLF is learnt to have said that Value housing will enable it to expand its market reach. The company is eyeing margins of 25-30 per cent for this new product category, sources said, adding that it also saw this as a great way to unlock land parcels.
We have significant land parcels available for value housing projects. We are not saying that value housing is not profitable for us… It will be an extension of premium housing segment, the Vice-Chairman, Mr Rajiv Singh, said in a conference call to discuss July-September results.
More : thehindubusinessline.com