DLF realty is focusing on luxury homes to reduce debt
Raising debt amount is becoming a burden for the DLF builders. To ease its debt burden, the real estate group is focusing on luxury home projects in India.
In a report it is found that the company has faced serious construction delays which had a drastic impact on its ability to reduce its huge debt.
The company’s net debt has remained unchanged in spite of DLF selling 40 percent additional non-core assets last year. The situation has remained because cash flows from its project development business declined following a drop in project deliveries.
In this financial year 2012-13, DLF is targeting sales of Rs 5,000 crore, a 200 percent jump from last year’s figures. However, according to different real estate analysts, in the current economic scenario, that will be extremely difficult to achieve. If it fails to achieve its sales target, there could be more construction delays.
While DLF is the largest developer in the country, its stock has fallen by 19.5 percent in the last one year.
To read more real state stories:
New launch of real estate projects in India are on a halt
Source: First post
Apartments in India, Debt, DLF, DLF builders, Investment in Real estate, luxury home projects, projects in India, Properties in India, Real estate in India
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