DLF’s Big Gamble

January 18, 2008	(2 votes, average: 2 out of 5)  Loading ...
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An astounding land holding of almost 750 million square feet around the country, about 20% more than its next-biggest competitor, DLF’s unarguably rules the India Real Estate Market.

DLF Ltd. has dominated the extraordinary building boom in India. Now, the country’s biggest property company is making a big bet on a hot new market: houses for the middle class.

But the challenge is not that simple, the company is taking on a tough challenge in meeting its growth goals while counting, in part, on a relatively unknown and unpredictable market — residential developments for India’s growing number of middle-income families.

DLF has long been involved in commercial projects, has seen its shares soar as part of an Indian real-estate rush. Now it plans a big push into residential housing for increasingly affluent Indian families.

Reliable data on the number of new residential properties being built aren’t available, raising the potential for overbuilding. Other challenges include the rising price of steel and a tight market for skilled labor.

But DLF is quite positive in its approach, the company says that it has taken steps to thwart the challenges, including buying raw materials in greater bulk and luring expatriate workers in the Middle East back to India. Executives also argue that demand remains strong despite credit conditions.

News Published Under:   Real Estate Developers |

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