Correction in real estate prices largely done: DLF

DLF Vice President, Rajiv Singh said Monday that correction in real estate prices and volume in realty sector is largely done and he expec
ts stability to return in prices and volume in next eight months.

DLF scrip gained near about 10 percent early Monday. At 11:15 am, the share was trading at Rs 244, up 10.78 per cent from Friday’s close.

Rajiv Singh said he expects cash flows to remain positive in the sector but added that the tight monetary policy and the rise in home loan rates has severely affected the sector. Real estate developers are working on very thin margins, he added.

According to Singh, mid income housing continues to grow. However, he added that government polices should support the first time home buyer.

The Delhi-headquartered developer - which sells a large portion of its commercial assets to DLF Assets Ltd, a company promoted by DLF Chairman K P Singh, said DAL will raise Rs 5,000 crore from the market in next two quarter.

DAL's portfolio as of now includes IT parks in New Delhi, Hyderabad and Chennai and two large office complexes in Gurgaon. DLF posted a 4 per cent drop in net profit for July-September quarter at Rs 1,935.35 crore, as change in product mix towards the mid-income housing compressed margins.