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At 2,717 feet, the Burj Khalifa is the tallest building in the world, but since its opening two years ago, it has struggled to profit from its grand reputation.As Angela Shah reports for The New York Times, investors are calling the Burj “distressed,” as the building has not yet bounced back from a 40 per cent downturn in apartment prices it suffered in 2010.
Meanwhile Dubai’s stock market is stuck at its lowest level in 7 years.
The slump in the Burj’s value is indicative of just how much Dubai has suffered from its absurd real estate bubble. Real estate values have fallen by over 60 per cent since the Dubai crisis, according to Arabian Business.
Some of the ambitious real estate projects that have already failed in Dubai include The Nakheel Harbour and Tower, the Palm Deira, and the Trump International Hotel and Tower.
40 per cent of buildings in Dubai are vacant, despite that the Emirate has not stopped building and real estate values have dipped lower.
Real estate analysts, however, say the value of the Burj (around 2,200 dirhams per square foot, or $599), along with other buildings in the city centre of Dubai, is stabilizing, though prices remain much lower than they were pre-real estate crisis, according to Shah.
A real estate developer told Shah that he expects Dubai’s market to remain in a slump for at least the next two years.
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