Tower Of Babel’s Rent Drops 40% In Ten Months. That’s Just The Beginning. The New Name For the Burj Should Be The Ghost Tower Of Inverness.
When the world was in awe of Dubai’s stupidity, we said the oil fiefdoms were headed for a bust. And that the Burj was the modern day Tower of Babel – man’s arrogance personified. All things come in due time. Central bankers and politicians can’t spend other people’s money forever.
Remember our post back in the summer of 2007 highlighting Thailand’s property bubble? And how it paralleled the emerging markets building boom of today? There are thirteen year old skyscrapers in Thailand half finished that are rotting as I type this. Because the iron structures and rebar have been exposed to the elements for years, they will never be finished. They are structurally unsound. Yet no one has the money to tear them down after the party stopped.
In the linked article, it’s mentioned that a studio apartment can be rented for 80,000 dirhams a month. That’s about $22,000. And 72 of 900 apartments are rented. A smashing success! At this rate, the entire building will be rented in ten years. Of course, it’ll more than likely never be fully rented. It may even be abandoned at some point.
It appears the property management at the Burj needs to hire some of those Goldman Sachs sales reps. You know, the ones who sold all of those shitty deals. Sounds like they can sell anything to anyone without a conscience.
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