DLF to build fewer projects
India’s largest real estate company wants to build fewer homes and instead focus on clearing existing inventory over the next three to four years. The reason behind this is the change in accounting standards.
The real estate major is focusing on clearing out its inventory of ready apartments in order to better realise its revenue and margins. DLF is constructing one property in New Delhi called ‘Mid-Town’. The company wants to go for a “layered” approach where it will construct new properties every three-four years.The market has “veered toward completed products rather than a product which is currently under construction with delivery a few years down the road, said an official.
The realty major’s net profit rose 66 percent to Rs 247.73 crore in the January to March quarter despite a drop in its sales. While the financial year 2017-18 was weaker than usual on the back of the Goods and Services Tax and Real Estate Regulation Act implementation, the current financial year is expected show better results.