Skyscraper boom signals slowing economy: study

12 Jan 2012

Environmentally aware economists have long suggested that the property boom in India is not exactly a sign of sustainable development. Now, a Barclays Capital report confirms this perception.

The construction of enormous skyscrapers has an "unhealthy" link with looming financial crises and investors should therefore keep a close eye on China and India, the investment bank said in its latest annual 'Skyscraper Index' survey released today.

"Today India has only two of the world's 276 skyscrapers over 240 m in height, yet over the next five years it intends to complete 14 new skyscrapers, in what will prove to be its largest skyscraper building boom.

"Worryingly as well, India is also constructing the second tallest building in the world, the Tower of India, which should complete by 2016,'' the report says.

It is clearly referring to the upcoming India Tower in Mumbai, which would be the world's second-tallest building, after the Burj Khalifa in Dubai, completed early last year amid financial troubles.