Economics and the mid-life crisis have much in common: Both dwell on foregone opportunities

C'est la vie; c'est la guerre; c'est la pomme de terre . . . . . . . . . . . . . email: jpalmer at uwo dot ca

. . . . . . . . . . .Richard Posner should be awarded the next Nobel Prize in Economics . . . . . . . . . . . .

Monday, January 10, 2005

If You Build It, They Won't Necessarily Come

A major complex is being developed around an artificial lake in Dubai: 78 planned high rises, 35+ floors each.

Designs for 14 of the buildings were recently approved. [Thanks for the pointer, JC]. Here is a description of three of them:
The Dubai Metals and Commodities Center (DMCC) recently launched three towers at Jumeirah Lake Towers. Named “Almas”, “Au” and “Elaf”, the towers have been conceptualized and designed to address specific requirements.

The 64-story, highly secure Almas tower is meant for regional and international diamond communities and will be home to the Dubai Diamond Exchange. While the Au tower is designed for the gold and jeweler market participants and will be the base of the Dubai Gold and Commodities Exchange, the Elaf Tower is designed specifically for commodities trade.

The entire project is extremely ambitious. It could become a major centre. After having been accused of cynicism in a recent comment, let me ask, nevertheless:

What are the odds that all 78 high-rises will be built in the next 50 years? What do you think the vacancy rate would be over time?
[hint: Petronas Twin Towers in Malaysia].
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