Came across an interesting article and indicator.
Excerpts
"Could it be that the building of record breaking Skyscrapers could be used as a tool to predict the onset of economic downturn?
The answer according to economist Andrew Lawrence, research director at Dresdner Kleinwort Wasserstein, is quite possibly, Yes!"
"A decline in interest rates at the beginning of a boom has at least three effects which contribute to skyscraper construction. Firstly it drives land prices higher, hence the attractiveness of constructing a tall building with a small footprint and thereby increasing vertical density. Secondly, declining interest rates allow an increase in the average size of a company, creating demand for more office space. Thirdly, low interest rates provide investment to construction technologies that enable developers to break earlier records. All three factors peak at the end of the growth period."
Full article published here on http://www.dubaipropertycrash.com/wp/2009/01/skyscraper-index/
Posts
