Realty giant DLF has offered some sweeteners for the buyers of its new housing project at Gurgaon. In a first-of-its-kind move, the company wrote to people who had booked flats at its New Town Heights residential project, where construction is yet to start, of an amendment to its sale agreement. The change entitles customers to benefits that will work out to a price reduction, it says, of about 20 per cent.
The company has announced a 5 per cent discount over the basic sale price. It has also announced another 10 per cent timely-payment rebate. The changes also include an increase in the compensation rates for delays from Rs 5 per sq ft per month to Rs 10.
It has also rescheduled the payment plan. Now, instalments have been linked to various construction milestones. All payments received over and above 35 per cent of the sale price will thus be treated as advance payment, and a rebate equivalent to 13 per cent interest will be allowed to the customer.
The company said the move was in tune with its earlier announcement to cut the prices of residential projects by 15-20 per cent.
“We have been implementing the price correction on a project to project basis. Different models were worked out in cities like Chennai and Bangalore. In Hyderabad, reduced prices were announced. Each model reflects the price correction happening in specific cities,” Rajiv Talwar, group executive director, DLF said.
According to him, DLF’s attempt is to hold all existing clients, boost customer confidence and attract new customers, to ensure continued cash flow in the times of global recession. “We are trying to be responsive to the market,” he said.
Customers, however, said it wasn’t such a generous thing. Commenting on the 10 per cent timely payment rebate, they said the rebate was on 65 per cent of the total amount, as 35 per cent was always paid as advance. “This means the rebate is effectively 6 per cent and not 10 as claimed by DLF. When the total benefit may not be more than 11 per cent, how can the company claim to offer 20 per cent discount?” they asked.
The project-specific and city-specific plans also came under criticism. However, the customers agreed that the DLF move was not a legal compulsion but a goodwill gesture.
The move has generated interest among other players also. Delhi-based property developer, Omaxe, said the company was working out a similar offer for its Greater Noida customers.
Attn. all DLF New town height investors, If you would like to subscribe to this group:
1. visit
http://in.groups.yahoo.com/group/dlfnewtownheightsgurgaon/join
-OR-
2. send email to dlfnewtownheightsgurgaon-subscribe@yahoogroups.co.in
Let me know if there is any issue.
Rahul Bhambri (rbhambri_in@yahoo.com)
DLF the largest and the most trusted and sincere realty arm of our nation if cannot be trusted than no realty firm in india can be trusted.
During the present economic world crises it is not only DLF is facing problem but number of leading financial and other organisation of world are facing this economic downtrend.
Instead of blaming Dlf one should trust them and give them some time to coup up with the present problem.As people associated with DLF has also earned a lot in the past.
Posted by: Rajnish
April 17 , 2009, 04:01 IST
I would luv to trust DLF , but DLF is just another name. Also it is companies like DLF only which are pushing NRIs away. I personally know around 20 people who have invested in DLF and are in depression with DLF reaction. If it would have been any other country , Govt would have jumped in interest of customers. DLF at present stands with around 1700 crore debts with 500 crore of assets as per Mr Rajiv Singh's interview to NDTV.
DLF is a big fraud. DLF's ultimate aim to extract money from helpless end users (because of absence of any regulatory govt body) and invest in other commercial activities to make huge profits.
This is all pulling wool over the eyes of investors like us who have invested our hard earned money with a company like DLF which we always thought was very professional. Seeing the way the company is acting now being indifferent to the woes of investors, we are REALLY VERY MUCH DISAPPOINTED
DLF says Building plans have been sanctioned? How can they increase the area by 5% on a sanctioned plan as claimed earlier. This is a ploy to buy time. There is a timely payment rebate of 10%, on 65% of balance amount (not total) as DLF already has received 35% of the money from the allottees, 5% will be last instalment . So effectively people will get only 6% disc. & not 10% as mentioned by DLF. Making a total disc. of 16% & not 20% as highlited. Is it posssible that DLF does not know how to calculate ! They still haven't got the Environmental Clearance, no bldg plans? How can they start construction without proper documentations and approvals? Looks like DLF thinks they are smart and investors are fools.
Real Estate prices are going to fall off its roof in coming months. Token gestures will please people who are not in tune with the current market.
Posted by: gopal
April 02 , 2009, 05:16 IST
The realty prices cannot go below the cost of construction.It is only the reduction in huge margin which builders were earning in the past can be curtailed.
building is good hedge against inflation which according to me will go beyond double digit shortly after election because all figure shown by government of negative inflation are nothing but manipulation as you all must be seeing in your daily life while doing expenditure.
Grab this opportunity after the market stabalises for the highest future gain though long term
Content Guide
