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Bangalore to become more affordable
By siliconindia
|
Thursday, 19 February 2009, 22:42 IST |
16 Comments
Bangalore: Bangalore is getting cheaper as the realty major DLF has cut down its rate by 32 percent for an upcoming project in Bannarghatta road, Bangalore. The price per sq.ft. has now come down to 
1,850, a price last quoted in 2000, reported The Economic Times.
The company had in October 2008 announced the launch of this project with 2, 750 per sq ft. According to the company the slash in price is clearly a response to slowdown. As per the new offer, DLF will set up 1,980 units over 27.5 acres. The move to cut the rate by DLF is expected to hit local realty majors such as Prestige and Nitesh Estates as they have projects to come at price ranging 3, 200-3,500 per sq ft.
A DLF spokesperson said, "We are mainly passing on the benefits of efficiency derived from new plans and input cost reductions which have kicked post the earlier launch. Although, we received reasonable response to our earlier launch, the current market calls for greater thrust in terms of value proposition and our current launch is an effort in that direction."
Currently, this is DLF's only active residential project down south after the company rolled back plans in Kochi and is going slow on a proposed plan in Chennai. The unit price of these apartments range between Rs 31 lakh (1,085 sq ft) and Rs 45.5 lakh (1,850 sq ft). Essentially, the per sq ft rate is lower for a larger apartment area.
"DLF may decide to go ahead with the project and book a loss, in a bid to get some liquidity into their system. But I think the rates they are quoting now are not feasible, and we will not follow suit," said a promoter of a Bangalore realty firm.
1,850, a price last quoted in 2000, reported The Economic Times.
The company had in October 2008 announced the launch of this project with 2, 750 per sq ft. According to the company the slash in price is clearly a response to slowdown. As per the new offer, DLF will set up 1,980 units over 27.5 acres. The move to cut the rate by DLF is expected to hit local realty majors such as Prestige and Nitesh Estates as they have projects to come at price ranging 3, 200-3,500 per sq ft.
A DLF spokesperson said, "We are mainly passing on the benefits of efficiency derived from new plans and input cost reductions which have kicked post the earlier launch. Although, we received reasonable response to our earlier launch, the current market calls for greater thrust in terms of value proposition and our current launch is an effort in that direction."
Currently, this is DLF's only active residential project down south after the company rolled back plans in Kochi and is going slow on a proposed plan in Chennai. The unit price of these apartments range between Rs 31 lakh (1,085 sq ft) and Rs 45.5 lakh (1,850 sq ft). Essentially, the per sq ft rate is lower for a larger apartment area.
"DLF may decide to go ahead with the project and book a loss, in a bid to get some liquidity into their system. But I think the rates they are quoting now are not feasible, and we will not follow suit," said a promoter of a Bangalore realty firm.