DLF to sell only completed flats under new biz model

DLF will sell apartments only when it gets occupancy certificate after completing the project as part of its new business model. The aim is to remove any uncertainty regarding costs and delivery timelines, a senior executive at the realty major said. The decision assumes significance as the Indian real estate market has been facing huge delays in project executions.

DLF will sell apartments only when they get occupancy certificate after completing the project as part of its new business model to remove any uncertainty regarding costs and delivery timelines, a senior official of the realty major said.

The decision assumes significance as the Indian real estate market, especially Delhi-NCR, has been facing huge delays in project executions, forcing home buyers to protest and move courts.

Lakhs of home buyers are stuck in various projects of developers such as Jaypee group, Amrapali, Unitech and The 3C Company.

Highlighting the company’s new business model, DLF’s group CFO Saurabh Chawla said the company would sell only completed products now.

“Customers are now averse to taking risk and they prefer to buy ready-to-move-in apartments,” he added.

Chawla said DLF will apply for occupancy certificates once the structure of the building is complete along with other infrastructure. The additional cost on increased working capital requirement would be marginal, he added.

DLF currently has completed inventory worth about ~135 billion, which would be sold over the next 5-6 years. The company would continue to build fresh inventory of completed product. DLF, along with its partner GIC, has started construction on the first phase of its 7 million sq ft housing projects in central Delhi.