Who's Losing in Construction

By Ellen Gibson

In 2003, Dubai announced it was building the world's largest theme park around the world's largest shopping mall. No one batted an eye. By mid-decade, real estate speculation was so rampant that every other television show demonstrated how to "flip" houses to turn a quick profit. No longer. With global economies reeling and banks taking few risks, financing for ambitious real estate ventures has all but disappeared. In March, 126,000 U.S. construction jobs were lost, and a recent report by Emporis found that construction has stalled on 142 of 1,324 skyscrapers around the world. Five-star hotels and luxury condominiums are particularly vulnerable in this new era of frugality, as are many Persian Gulf projects that were green-lighted when oil was still $100 a barrel.

And what about all the "starchitect"-designed buildings that aspired to be the tallest on their continents? They seem more hubristic than optimistic in 2009. In a fitting metaphor for the stunted market, buildings designed by the likes of Frank Gehry and Norman Foster are being downsized to more modest heights.

Here's a look at 20 ventures that have suffered setbacks, or even frozen completely, in this new real estate Ice Age.

Business Exchange related topics:
Real Estate Speculators
Luxury Real Estate
Building Products Distribution
Global Economy