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Source link: http://archive.mises.org/20979/the-worlds-tallest-building-is-now-a-distressed-property/

The World’s Tallest Building Is Now A ‘Distressed’ Property

February 9, 2012 by

Oh how the mighty tall have fallen. And they are still building despite falling rental rates in Dubai. Elsewhere India and China are building national record setting skyscrapers sending a crisis signal for these two “developing” giants.

ht: JP

{ 5 comments }

Abir Mandal February 9, 2012 at 7:00 pm

The difference in India is the private sector will bear the costs of these skyscrapers. And will bear the loss if the investments go down south. Much healthier than what is going on in Dubai and China.

KErickson February 10, 2012 at 8:09 am

And don’t forget, the tallest building in the SouthEast US is also under foreclosure.

http://www.ajc.com/business/bank-of-america-plaza-1336921.html

Amjad February 11, 2012 at 1:43 am

Hi,

In India the private sector is controlling the Infrastructure business though government also played a role in making the Infrastructure business yet the share is miniscule vis a vis the private sector.The govt is really cunning in not making those mammothic projects that doesnot bring any revenue or perhaps the untimely hype creation.

HistorySquared February 11, 2012 at 5:43 pm

Building Skyscrapers Forecasts Lowers Stock Market Returns, says Research

“ In the three to five years after the construction of a record-breaking new skyscraper began, per annum stock market returns are around 10 percentage points lower than in other years.”

Building Skyscrapers Signals Excess, Forecasts Crashes, says Barclays
“Often the world’s tallest buildings are simply the edifice of a broader skyscraper building boom, reflecting a widespread misallocation of capital and an impending economic correction,” said Barclays analysts.”

“China is erecting 53 percent of the 124 skyscrapers planned over the next six years,” building on the 75 already constructed. India is a distant second with 2 under constructed, including the 27 story residence of billionaire Mukesh Ambani, and has another 14 planned. London is building up its skyline as well.”

You can find some more on this blog post i wrote. Cheers.
http://historysquared.com/2012/01/11/building-skyscrapers-signals-excess-forecasts-crashes-says-barclays/

Daniel February 13, 2012 at 8:00 pm

I wonder if the Keynesians will believe in malinvestment now?

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