DLF is coming with new strategy of levying escalation charge on buyers.
In the last three years DLF has seen a situation where the construction cost has gone up by nearly 40%. In order to protects it's margins and it has devised the new escalation charge, which will be based on Reserve Bank of India ( RBI) index of steel, cement etc.
There is a formula that they have come out, that gives each of the commodities a weightage and an independent audit firm is then going to compute the actual acceleration that has taken over the time of construction. Therefore that will then be added onto sale side after the construction.
So, one will have the ultimate price of the apartment only post the construction is done. Some analysts feel that this could be an increase or decrease of 10-11%. What DLF has also written in it's buyer agreement is that supposing we see inflation cooling off and input cost actually going down as per the RBI index that money will also be refunded.
....more info
In the last three years DLF has seen a situation where the construction cost has gone up by nearly 40%. In order to protects it's margins and it has devised the new escalation charge, which will be based on Reserve Bank of India ( RBI) index of steel, cement etc.
There is a formula that they have come out, that gives each of the commodities a weightage and an independent audit firm is then going to compute the actual acceleration that has taken over the time of construction. Therefore that will then be added onto sale side after the construction.
So, one will have the ultimate price of the apartment only post the construction is done. Some analysts feel that this could be an increase or decrease of 10-11%. What DLF has also written in it's buyer agreement is that supposing we see inflation cooling off and input cost actually going down as per the RBI index that money will also be refunded.
....more info