DLF Home Developers, part of the Delhi-based DLF group, is to launch residential township projects in Chennai and Coimbatore.
Also in the pipeline is a Hilton hotel near Chennai at Siruseri on Old Mahabalipuram Road (OMR) as part of a joint venture between DLF and Hilton Hotels Corporation. This plan is at a preliminary stage.
These are some of the projects that DLF has for Tamil Nadu, where it plans to invest over Rs 10,000 crore over the next three years.
Apart from this, DLF is likely to launch the two retail malls it announced earlier in Chennai. One is coming up at Ethiraj Salai, on the 4.5 acre property it bought from Mico two years ago, in the heart of the city. This would be a 4-5 lakh square feet mall with multiplex and a double basement. The other is to be built in Guindy.
The approval process is nearing completion, the company said. Sources said the two ‘mini township’ projects are planned near Chennai off OMR between Siruseri and Sholinganallur. The first, spread over 60 acres, is to be launched in two months and a second 150-acre facility, later. Another large township of over 400 acres is to come up near Sriperumbudur, about 25 km west of Chennai, in mid 2008.
Sources said the decision by one of the largest players in the real estate sector to launch residential projects on OMR is bound to have a telling impact on the market in Chennai.
At a time when there is a perception of a slump in the market for residential property, especially on the OMR, the move by the market leader to launch projects would rejuvenate the market, spur competition, and possibly set a new benchmark in prices.
Price speculation
Market sources say DLF is believed to be contemplating an aggressive price per square foot. While there is no confirmation on the price, it will be significantly lower than that of its competitors who have announced projects on OMR with prices higher than Rs 3,500 a square foot. DLF’s price would be a better ‘fit’ in a market where the slowdown in apartment purchase is attributed to a mismatch in pricing. Why would buyers want to shell out Rs 60 lakh and more for an apartment that is 30 km from the city, they ask.
Also, as a choice of location, instead of being on the OMR, DLF has chosen to put up projects a few km off OMR, taking advantage of the proximity to OMR while being away from the hustle and bustle of a main road.
DLF’s townships would have the advantage of being close to the place of work and to the proposed Siruseri-airport expressway, they said.
Coimbatore plan
The company is also planning a township project and a retail mall in Coimbatore. DLF is in the process of acquiring land in Coimbatore, which is seen as a major destination of investments in IT and industry in Tamil Nadu. The size of the township project would be decided by the land it is able to acquire at realistic prices, the sources said.
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