DLF cuts target by a third due to property slump

NEW DELHI: DLF Ltd, the largest real estate developer, has cut its current fiscal deliverable targets by about 33% following the deterioration in the housing and commercial property market.

The company is now expecting to deliver 15 million square feet (msf) against a guidance of 22-24 msf at the beginning of this fiscal. It has completed about 7 msf as on date.
“We will deliver 15 msf of constructed space by the end of this fiscal. We have deferred some projects, which have been already reported by media. In any case, 22 msf also included some plots which were not constructed properties, and that was the earlier target,” DLF’s financial chief Ramesh Sanka told DNA Money.

DLF was earlier planning to launch close to 35-40 msf of real estate projects across its different verticals such as residential, commercial and retail in the current fiscal. In the third quarter, DLF launched projects only in the mid-income housing segment. It launched mid-income housing in Bangalore, Kochi and Gurgaon.

The realtor is expected to launch 6-7 million sq ft of new projects in the rest of this fiscal including projects such as Sriram Mills in New Delhi, Panchkula, Bangalore, Hyderabad and Indore.

Early this week, DLF said it will build a commercial property on its  25-acre plot, which it bought from Sriram Industries near Delhi’s commercial hub Connaught Place, instead of IT SEZ.