DLF Ltd, the country's largest property developer, has sold an entire housing project in West Delhi by offering flats for as much as 32 per cent less than the market rate.
The New Delhi-based developer, which launched a residential project at Shivaji Marg (better known as Najafgarh Road) on April 7, managed to sell all the 1,400 apartments on offer.
The project is being developed on a 38-acre lot for which DLF paid Rs 1,675 crore (Rs 16.57 billion) in a 2007 auction, making it the biggest land deal of that time. Each apartment will be between 1,200-1,525 sq ft.
The developer had priced the West Delhi project at Rs 6,000-7,000 a sq ft (basic selling price) and offered an initial discount of Rs 1,000 a sq ft, besides an additional one of Rs 500 a sq ft on timely payments.
It also offered an 8.5 per cent discount if a customer paid the entire amount within a month of the initial booking, bringing down the effective price to Rs 4,075 per sq ft.
However, in addition to the basic price, customers have to pay preferential location charges varying between Rs 500 and 1,250 per sq ft, depending on what they chose and parking charges varying between Rs 300,000 and Rs 675,000.
Brokers who spoke to Business Standard said those still wishing to buy would be added to the waiting list. A DLF spokesperson confirmed the sale of all apartments but declined to say anything further.
Though brokers in Delhi say the price is good compared with current prices in the area, they say developers are cutting prices to clear their stock quickly, to create liquidity.
According to data from property consultant Cushman & Wakefield, the current market price in the nearest comparable residential area is Rs 6,000 a sq ft.
"Apartments are not getting sold easily today. If they have to sell immediately, they have to sell at cheaper rates," said Anil Singhal, a property broker based in New Delhi.
DLF has been forced to drop prices of some projects after facing opposition from customers. In the past month, it has reduced prices in some of its Chennai, Bangalore and Gurgaon projects by 10-20 per cent.