One indication that a market economy is well on its way to success is when developers in that economy start vying with one another for opportunities at one-upmanship. This appears to be what is going on in Dubai at the moment as state-owned property developer Nakheel might be looking to put forward a proposal that would result in the creation of a building that would trump the height of the Burj Dubai tower.
Considering that the Burj Dubai tower has only recently acquired that honour from the CN Tower in Toronto, Canada, this is quite an interesting development. The Burj Dubai tower has not even finished construction however and work has begun on this new tower that might end up being taller than the Burj Dubai tower.
The building, initially being referred to as Al Burj (a term that translates to tall tower), is however illustrative of a bigger point and one that relates directly to the health of the property market in Dubai.
Al Burj and the Burj Dubai are two monumental structures being constructed by two of the most successful property developers in the area. This type of large scale competition only happens in markets that are healthy enough to sustain it and therefore the fact that two epic projects are being worked on at the same time in the same district area of Dubai is something that should make property investors in the region very happy.
These two projects, upon completion, will have nothing but positive effects on the market in Dubai. Not only will they drive up property prices for buildings that are near them (creating a larger return on investment to the people that have money in those buildings), but they will also boost tourism to Dubai in the same way that the CN Tower boosts tourism to Toronto.
Both the Al Burj and the Burj Dubai will be status symbols of the Emirate and status symbols usually have a very large and very positive effect on the market economies that create them.
