DLF defers projects as crunch bites

DLF Ltd, India8217;s top listed realty, has deferred some projects due to a slump in demand and liquidity crunch, its chairman said on Tuesday, warning slowing construction activity could affect other sectors.

K P Singh, one of India8217;s richest men, said developers could accelerate layoffs and some could even shut down as the market contracts drastically after a boom in the past three years when land prices quadrupled in many parts of the country. 8220;Demand has gone down so substantially that now lot of projects are being closed down,8221; Singh told reporters at the India Economic Summit.

He said DLF had deferred some of its hotel, housing and commercial projects on lower demand and lack of finances, without elaborating. Shares in DLF have slumped 79.1 per cent this year slashing the company8217;s market value to 8.1 billion. The stock shed 3.2 per cent on Tuesday to Rs 224.1 in a Mumbai market that fell 3.8 per cent. 8220;Already prices are down, everybody knows that. They will further come down based on input costs,8221; Singh said, adding there were hardly any takers even at lower prices.