The cash-strapped real estate developer, Emaar MGF Land Ltd has a reason to smile as the Delhi Development Authority (DDA) has announced special bailout package for the realtor for developing the Commonwealth Games Village (CGV) project.

DDA will purchase 333 flats at Rs 11,000 per sq. ft from Emaar-MGF at the rate 13 percent higher than recommended by an expert committee, for forthcoming Commonwealth Games scheduled in 2010.

Earlier, the realtor demanded Rs 1,000 crore bailout to revive demand across the recession hit property sector. It had also planned to raise funds by pre-sale of flats but slump in reality sector dashed all its hopes.

An Emaar MGF spokesperson said, “The DDA’s decision to invest in the Games Village is a very positive development.”

Emaar MGF, in partnership with the DDA, planned to develop 1,168 flats for athletes and other guests, hoping sale of about 70 per cent flats for Rs 12,750 per sq ft in the open market.

Pranay Vakil, Chairman, Knight Frank India Pvt. Ltd. said, “The reduction in prices of the apartments by the DDA is recognition of the fact that the property rates have moved southward.”