Tuesday, January 5, 2010

The world's tallest building is officially open - and largely empty

Virtually no sector of the economy has been immune from the recession, and real estate has been no exception.  In a case of bad timing, however, the recession hit as the world's largest building was being completed.  Monday marked the official opening of the Burj Dubai in Dubai.  The tower is over 2,600 feet high and 160 stories.

However - the tower sits mostly empty.  Almost all of its 900 apartments have been sold, but most of those were sold three years ago when the housing market was still booming.  But with Dubai itself in trouble as a result of a near real estate collapse, the opening of the Burj Dubai has created, in the words of the article, " a good deal more residential and commercial space than the market can possibly bear."

The article goes on to point out that other areas of the United States have seen similar problems when it comes to office space.  Towers are being sealed off in Las Vegas because of a lack of demand.  Massive condominium developments are sitting empty.

The point of the article seems to be this: massive projects conceived in more optimistic times are finding the current economic trends too difficult to bear as the real estate market goes through an adjustment period.

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