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ShareMumbai: DLF, India's largest realtor by market capitalisation, is set to launch a new brand of residential projects in the new 'value' housing segment. Residential projects in Bangalore, Chennai, Hyderabad, Gurgaon and Chandigarh are planned under this as-yet unnamed brand in the coming two quarters.
In all, DLF plans to construct 3-4 million square feet (of 500-600 sq ft flats) under this brand, Rajiv Singh, vice-chairman, DLF Group, said. "Through this brand we are looking at a margin of 25-30%. It is a lower extension of premier housing. We have a significant land bank in quite principal locations.
A certain portion of land for plotted land sale is to substitute by built units. Value housing is just a terminology, these are smaller units with cheap price points. We are contemplating launching it soon. It will be a substantial part of our business.The locations are good, the parcels are significant and we will do test launch in forthcoming future," Singh said at an analyst conference call on Friday. The company stressed it won't sacrifice volumes for prices.
"We cannot enter in developments where there are no sub-optimal margins as realty is a long cycle business," company officials said. DLF expects to earn margins of 30-40% from its residential projects overall. The company also said it will buy out Laing O'Rourke, the UK-based developer, from their joint venture in the next four weeks.
DNA Money first reported on February 25, 2009 that the partners are separating.DLF had earlier offered to pay anything between Rs 50 crore and Rs 100 crore for Laing O'Rourke's stake in the venture. Among plans is also one to list subsidiary DLF Assets Ltd in the Singapore real estate investment trust market.
