Will Dubai Property Boom Have A Grand Finale With Burj Dubai?
With Burj Dubai reclaiming its status of the tallest building in the world, real estate analysts wonder whether this is another instance of something called the ‘Tall Building Syndrome’. Over the years, world’s tallest buildings have touched the skies at a time when the local markets are Hades bound. Instances abound on world real estate canvas… Some of the more prominent ones are:
• World Trade Centre, New York: This building opened just before the Wall Street crash during 1973-74.
• Canary Wharf Tower, London: This tower was inaugurated in 1990, right before the worst post-war recession in the United Kingdom.
• Twin Towers, Kuala Lumpur: The construction of these towers was completed just before the Asian Financial Crisis in 1998.
Property experts are speculating whether the 512m high Burj overtaking Taipei 101, is an indicator of impending difficulties for Dubai real estate market.
Could it be a possibility?
At present, it is looking like a possibility only. There are certain factors responsible for this:
• Oil prices going steady at around 75 dollars per barrel.• Soaring demand for residential and commercial property in Dubai.• Upward trend in Dubai property rents.
However, experts believe a time might come in near future when there is oversupply in comparison to current demand. In such an eventuality, rents will plunge and as a consequence the present Dubai property boom will also cave in.
Big bang to continue
Dubai real estate boom will continue as long as something drastic does not happen in the realty world. In any case, it is more likely to wind up slowly rather than hitting an abrupt crash. The crucial role Dubai government plays as a property developer and promoter is a primary factor in this regard.
Future Tidings for Burj Dubai
Upon its completion next year, Burj Dubai will be an epitome of the success of Dubai real estate on a global platform. Consequently, competitors will come up with still more ambitious projects. Already in the offing are a “super-tall” building by James Packer in Las Vegas, and closer home, Nakheel’s proposed Al Burj tower.
As of now, all one can do is keep one’s fingers crossed!
• World Trade Centre, New York: This building opened just before the Wall Street crash during 1973-74.
• Canary Wharf Tower, London: This tower was inaugurated in 1990, right before the worst post-war recession in the United Kingdom.
• Twin Towers, Kuala Lumpur: The construction of these towers was completed just before the Asian Financial Crisis in 1998.
Property experts are speculating whether the 512m high Burj overtaking Taipei 101, is an indicator of impending difficulties for Dubai real estate market.
Could it be a possibility?
At present, it is looking like a possibility only. There are certain factors responsible for this:
• Oil prices going steady at around 75 dollars per barrel.• Soaring demand for residential and commercial property in Dubai.• Upward trend in Dubai property rents.
However, experts believe a time might come in near future when there is oversupply in comparison to current demand. In such an eventuality, rents will plunge and as a consequence the present Dubai property boom will also cave in.
Big bang to continue
Dubai real estate boom will continue as long as something drastic does not happen in the realty world. In any case, it is more likely to wind up slowly rather than hitting an abrupt crash. The crucial role Dubai government plays as a property developer and promoter is a primary factor in this regard.
Future Tidings for Burj Dubai
Upon its completion next year, Burj Dubai will be an epitome of the success of Dubai real estate on a global platform. Consequently, competitors will come up with still more ambitious projects. Already in the offing are a “super-tall” building by James Packer in Las Vegas, and closer home, Nakheel’s proposed Al Burj tower.
As of now, all one can do is keep one’s fingers crossed!
posted by Property Reporter at
12:05 AM
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