Lack of buyers in the property market has forced country's largest real estate firm DLF to cut prices of its future projects by up to 15 per cent, while the firm hinted that unless the housing market improved, it could resort to "some kind of cutting" of jobs.
Pointing out that the property market had come to a "virtual shutdown", with sales declining to 10-25 per cent of normal volume, DLF Ltd vice chairman Rajiv Singh said new projects would be offered at significantly cheaper rates.
"New project of ours will be competitively priced. As we look and go forward, we expect price levels to come down another 15 per cent if the economic uncertainty continues," Singh said.
Asked by when these decrease in prices could be seen, he said: "I expect the process to be over in the next three months." It has already lowered the prices in Hyderabad.
He said the market had already witnessed a price correction of up to 30 per cent in the last 12-15 months out of a total potential of 40-50 per cent.
Asked about implications of the market slump on employment, Singh said: "There is no lay-off, but people are moving on and it's not that substantial. We are definitely keeping our costs under tight watch and control. Our attempt is to actually increase our volume going forward."
He, however, hinted that unless the market improved, there could be some job cuts.
"Hopefully in the next few months, we will be able to achieve good volumes. If we can, then we can alleviate most of these issues. If not, God forbid, then we will have to resort to some kind of cutting," Singh said.
Singh said the company expected normalcy to return in the realty business in the next two years.
