The ongoing world economic crisis has widely impacted the real estate sector. The largest real estate company in India, DLF has announced various measures to cut costs and reduce unnecessary expenses. DLF would terminate services of some of company's employees and stop working on some of its projects.

Unitech and Parsvnath Developers also retrenched their staff last month in line with cost cutting drive due to global meltdown.

DLF Chairman, KP Singh said that companies are facing shortage of funds and it is available at high interest rates. It is a difficult time for real estate sector due to liquidity problem and slow demand. The company would stop some proposed projects in hotels, residential and commercial segments. He cautioned that situation may force companies to terminate jobs and demanded more measures from the government to improve the market. KP Singh said that residential sector is under pressure due to high interest rates for home loans. He was speaking in the sidelines of Indian Economic Summit organized by the World Economic Forum.

The company had laid-off its 300 employees last month. It has also dropped the idea of proposed largest mall, the Mall of India project, to save cash amid ongoing credit crunch.