DUBAI, (Reuters) – Dubai-based developer Limitless said on Thursday it is reviewing a $12 billion residential and commercial project in India because authorities there have not yet bought the required land. Its announcement came a day after the developer cut 7 percent of its workforce and delayed a key contract on its $61 billion Arabian Canal project due to the global economic downturn.
Thousands of jobs have been lost in Dubai’s once-booming real estate sector, as property prices fall and developers slow or cancel projects.
Limitless said on Thursday that it and India’s DLF won the contract to build the Bidadi development on the outskirts of Bangalore in October 2007. “Under the agreement, government agencies are responsible for the land acquisition,” a Limitless spokeswoman said in a statement. “Unfortunately, after 18 months, the land acquisition has not advanced. As a result, Limitless and DLF have notified the government that they are reconsidering their position,” she said.
“Limitless remains optimistic about India as a future market, and will continue to explore viable opportunities there.”
The company’s portfolio also includes projects in Jordan, Saudi Arabia, Russia, Malaysia and Vietnam.