By Tom Arnold
EXCLUSIVE: Details on future of luxury plan will be revealed at 'appropriate time'.
Limitless confirmed on Sunday it was reviewing its World Island Resort, a $350m luxury development planned off the coast of Dubai.
The developer would make an announcement on the 10.5 hectare luxury resort located on a manmade island 14km off the emirate’s coastline at “an appropriate time,” said a Limitless spokeswoman, refusing to be more specific.
“We are carefully reviewing our various projects in light of the world economic crisis,” the spokeswoman said in a statement.
“We have already adjusted the pace of development to reflect current market conditions and we will continue to do so.
“We will make an announcement on World Island Resort at an appropriate time.”
Comprising 53 villas and water homes and a hotel with a spa, in addition to restaurants, art galleries, auction rooms and conference facilities, World Island Resort was launched in September last year by Limitless, which is controlled by government-owned Dubai World.
It was to be positioned on the north-east perimeter of The World, a development by Nakheel, also part of Dubai World.
Limitless said in April it had cut seven percent of its workforce and delayed a key contract on its $61bn Arabian Canal project due to the global economic downturn.
The 38 redundancies follow thousands of cuts in Dubai's real estate sector due to a combination of a collapse in property prices and developers postponing or cancelling projects.
Limitless said work was progressing on its Downtown Jebel Ali project. In April, it said 250 plots of land were ready for handover to developers on the 200-hectare Dubai development.
'refusing to be more specific.'...this is exactly where the problem lies...why not bemore specific??
I am a little fed up with the amount of blame directed to the "Global Economic Crisis" for the downturn in the UAE real estate market. True, it has had an impact (restricted credit, etc.), however I would venture a guess that the "Global Economic Crisis" was just the trigger for an event that would have happened anyway...the bursting of the UAE property bubble. Sustainability of property prices can ONLY be based on sound supply and demand principles and not on a speculative run on property investments. Unless the UAE is able to diversify its economy such that ALL these developments will be filled by people living in them who work outside of the real estate/construction sector then the market will continue to see such bubble bursts.
Clearly, the limit has been reached. Time for a re-brand I reckon
Maybe this is a dose of realism being injected into such a daft scheme. The World was always one step too far.
I totally agree with Omar Shamma. I remember reading an article several years ago in which Mr. Kanoo had written about the bursting of the bubble. Although Credit crises has affected Dubai, isn't it more to do with a majority of people being unable to afford all these multi-million dollar apartments? Now that the projects are nearing completion suddenly the market has collapsed. Even then this has proved to be a blessing in disguise for all the other ridiculous projects that have not yet even got off the drawing board. If they had just started the construction then it would have made a bigger mess as the funding would have dried up and the project could not have been built & could have been cancelled either.