Real estate giant DLF in association with Singapore’s sovereign wealth fund GIC has announced to invest about Rs 1,250 crore over the next four years to construct two housing projects in the national capital, Delhi. These two projects which will be called ‘Midtown’ are located at Moti Nagar in central Delhi.
To be developed in an area of about 7 million sq ft., this project will be developed in phases. The construction of the first phase has already started in an area of 2.5 million sq ft. As per the sources, the total estimated amount for the construction for the first phase will cost around 1,250 crores.
The above two projects are the part of DLF’s overall development of 38-acre land parcel at Moti Nagar, Delhi that it bought in 2007 from DCM Shriram and Lohia Group for Rs 1,675 crore. Till date, DLF alone has developed and sold around 2,850 flats in three phases of ‘Capital Greens’ project of which 1,500 units for the economically weaker section.
However, for further development on the next phase, DLF has entered into Joint Venture with GIC. Recently, DLF has announced their new business model under which they have planned to sell only those residential units to home buyers for which they have received occupancy certificates.
As per the new business model, DLF would sell only completed products from now onwards as most of the customers are now averse to taking a risk and they prefer to buy ready-to-move-in apartments.
Currently, DLF has completed projects worth about Rs 13,500 crore in Gurugram which they will sell in next 5-6 years.