Developer Emaar Properties said on Tuesday it had suspended construction of a residential tower in a prime Dubai location near the world’s tallest building, showing how the coronavirus is deepening the emirate’s real estate downturn.
Dubai, a regional tourism, trade, and business hub, has faced a real estate slowdown for most of the past decade as the global financial crisis and weak oil prices burst a price bubble and left the market oversupplied with homes and offices.
The coronavirus outbreak, which has sent oil prices plunging further, has cast a further shadow on real estate prospects.
“In light of the current situation, delays in operations outside of our control have impacted construction on the project,” an Emaar spokesman said about the suspension of work on the luxury 77-storey Il Primo tower in district.
He said there would be a “temporary pause” in construction of the tower next to the world’s tallest building, the Burj Khalifa, which Emaar built. He did not say when work was expected to resume.
The Il Primo tower is designed to have luxury apartments with four, five and six bedrooms, with prices starting at 19,413,888 dirham ($5.3 million), Emaar’s website said.