Bangalore: India’s largest real estate developer by market value, DLF Ltd, has slashed the pre-launch booking price of apartments at its debut residential project in southern Bangalore as the current slowdown dampens demand for realty.
DLF is now offering apartments at its proposed 80-acre gated community in Bangalore’s BTM Extension for Rs2,775 per sq. ft, against Rs3,500 per sq. ft earlier. This means that a 1,310 sq. ft two-bedroom-hall-kitchen (BHK) flat in the project would now cost Rs36.35 lakh, or about Rs9.5 lakh cheaper than its initial price. The current market rate of property in the area is between Rs3,000 and Rs3,500 per sq. ft.
The project, however, is yet to receive mandatory approval from the Bangalore Development Authority.
“We have opened pre-launch bookings and are expecting to get the BDA approval in the next two-three months after which we begin construction,” said an official at DLF Homes requesting anonymity as he is not authorized to speak with media. “The first phase (of the project), which will have about 700 units, will be complete in 24 months.”
DLF did not respond to phone calls or an email sent by this reporter on Monday afternoon.
“This is an experimental price and they (DLF) are likely to slash it further for quick sales,” said a property analyst from a leading international real estate advisory, which works closely with DLF. The analyst asked not to be named. “The company had a soft launch of the project on 15 November where they invited close contacts...(the) final booking price will be determined based on the response they get in the next couple of months,” he said.
As analysts forecast a correction in property prices in the coming days, developers are coming out in the open to admit slower sales and lower demand.
Bangalore-headquartered Sobha Developers Ltd recently announced an 8% reduction in prices across all its projects. Another city developer, Golden Gate Properties Ltd, is offering possession of condominiums at its Golden Grand project at 75% of the property value with the option to pay the balance amount in five years.