Another ‘world’s tallest tower’ planned for Dubai comes despite sliding real estate prices
Emaar Properties' latest luxury project is a 'beacon' reinforcing Dubai's unique role, say architects
Some hot global property markets may be showing signs of cooling off, but that hasn't dissuaded Dubai's Emaar Properties. This week, the company launched a stunning showcase of its latest luxury project at upmarket London department store Harrods.
The event comes amid tough times for the city state's property market. Real estate services company, Jones Lang LaSalle (JLL), claims villa and apartment prices have fallen by 11 per cent and 10 per cent respectively in the past year, with hotel rates also heading south.
Emaar's project will feature what is set to be the world's tallest tower, taking the title from its own existing Burj Khalifa construct in Dubai, which rises to 828 meters. Emaar's reign may be challenged however: Saudi Arabia's Jeddah Tower, scheduled for completion in 2018, aspires to snatch the title.
So is another towering trophy asset really what the city needs?
Some argue this is what makes Dubai what it is. It has successfully carved a niche for itself as the Middle East's accessible hub both for vacationers looking to indulge in glitzy leisure activities and for businesses seeking a regional entry point. Landmarks such as these are perhaps essential physical representations of that status.
Michael Calatrava, an architect and also son of the project's architect Santiago Calatrava, argued that the new Tower is a critical "beacon" helping the city state reinforce its unique role in the world: "Dubai attempts to be the centerpoint between Asia and North Africa, Australia and Europe and creating these beacons really drives that," he says.
From a value perspective, marketers say prices for the new apartments start at over seven-times less per square foot than in prime central London. And with data over the past two years showing the steam finally starting to come out of this corner of the London market after the past decade's boom, few industry experts are advocating this as the time to pile in. Estate agent Savills also this week reported prime central London prices were down nearly 7 per cent from the 2014 peak.