DLF pricing its New Delhi project 60% higher

In the strongest endorsement yet of the turnaround in the real estate sector, DLF Ltd, India’s largest developer, is pricing its housing project in Delhi 60% higher than its previous launch.
The project, Capital Greens 3, which is expected to be launched next month, has been tentatively priced at Rs 12,000 per square foot, according to real estate brokers.

DLF refused to comment.

Phase I and II of the Capital Greens project, which was  launched in April and October last, were sold off in a couple of days as they were priced at Rs 5,500 per sq ft and Rs 7,500 per sq ft, respectively, much lower than the then-prevailing price of Rs10,000 sq ft.

DLF had recently indicated in a conference call that demand for luxury homes is back so it would launch some projects in this year.

Phase III of Capital Greens has been termed as a luxury project by the developer with offerings of four-bedroom apartments of 2,600 sq ft in 26-28 storey buildings.

The higher pricing was helped by recent healthy sales in the luxury home segment, as DLF sold more than 550 apartments of about 2 million sq ft in the National Capital Region, while it booked about 1 million sq ft of sales in the mid-income housing segment in new Gurgaon, Bangalore, Goa and Kochi.

Analysts said DLF’s margins were negatively impacted earlier because of the slew of launches in the affordable housing segment last year.