DLF’s Delhi project may be delayed

DLF Ltd, the largest real estate developer in the country, may delay the construction of its ambitious housing project in Delhi due to bottlenecks in getting the necessary approvals.

The construction, which is supposed to start in three months, might be pushed back by at least 4-6 months, till the time it gets approvals from MCD, environmental clearance, and building layout etc.

The company, however, has not officially launched the project yet, but most of the property dealers and brokers are in full swing to sell out the project. DLF declined to comment on the issue.

Brokers have briefed the applicants interested in the developer’s “Capital Green” project that if DLF was not able to start construction within one year, then it would pay back the deposit with 6% interest to customers.  However, sources within the company believe that all basic approvals would be cleared by May as they are already in advanced talks for it.

The realtor is offering the 2/3 bedroom flats at Rs 4,500-5,500 per square feet with commitments of completing the construction within three years. Similar but larger projects in the vicinity by Emaar-MGF and Parsvnath developers are selling at Rs 10,000-12,000 per square feet.

Analysts’ tracking the sector believe that if DLF is able to launch and deliver the project in time, then it would lead to at least 30% correction in all future launches by developers in Mumbai, Bangalore and Delhi.