WEIGHING THE ECONOMIC COSTS OF THE WORLD’S TALLEST BUILDINGS: A CASE STUDY OF BURJ KHALIFA | Teen Ink

WEIGHING THE ECONOMIC COSTS OF THE WORLD’S TALLEST BUILDINGS: A CASE STUDY OF BURJ KHALIFA

September 19, 2022
By jbarrett2023 BRONZE, Manhattan Beach, California
jbarrett2023 BRONZE, Manhattan Beach, California
1 article 0 photos 0 comments

Throughout history, the world’s tallest buildings have changed drastically through different time periods. Until recent years, no skyscraper held the title of the world’s tallest building. Previously, religious structures such as the Tower of Jericho held the title of the first recorded structure to be the tallest in the world. Soon after, various pyramids held the title for thousands of years until the era of cathedrals took over. Not until 1930 did skyscrapers hold the title for largest building, with the Chrysler building in New York City surpassing the height of the Eiffel tower in Paris. In recent decades, skyscrapers have dominated world records for height. Figure 1 portrays a graphic showing the tallest skyscrapers throughout the years. 

 

Figure 1: World’s Tallest Buildings since 1900

However, there has been recent debate on the purpose of creating these record-breaking structures. Each year, it becomes more and more expensive to build skyscrapers with the introduction of new materials and amenities such as electric elevators. With the amount of time, money, and resources, does the economic return justify building the structure? With numerous economic reasons against building the largest skyscraper in the world, many believe that the plan to create a structure like this concerns the pride or ego of the ones with power. However, the decision to create the building spans much deeper than that.  In considering this, the Burj Khalifa offers a suitable case study to explore. 

While determining whether the benefits of building the Burj Khalifa outweigh the costs, one must first look at the direct economic benefits and drawbacks of the building. Primarily, the building cost AED 5.5 billion to complete with 1,325 days of construction. As the building is 2,722 feet tall and intricately assembled to ensure safety, high cost was inevitable. However, the plummeting of property prices was not unexpected. With 90% of the 900 apartments within the building sold before its construction, the building’s success seemed guaranteed. The prices of each apartment peaked at an asking price of AED 7000 per square foot. Since then, the value of property in the building has decreased rapidly as, in recent years, the price per square foot has dropped to as low as AED 2100. During the global financial crisis, 825 of the 900 apartments were vacant, which further lowered the economic return of the building. One of the main factors contributing to the inability to sell living spaces was service charges. An additional AED 55.12 per square foot is required of residents for chiller charges and the preservation of communal areas of the expensive building. With the original cost and maintenance pricing of the building, the building itself has made little to no profit since its construction. 

Despite its failure to generate revenue buildings such as the Burj Khalifa, almost always create wealth and opportunity in the surrounding areas for various reasons. One of the most obvious ways is through the tourism that the building attracts. In recent years, there has been a correlation between record-setting structures and economic growth in the surrounding areas. This is because people come from around the world to witness famous structures such as the Eiffel Tower or the Pyramids in Egypt. Averaging 7 and 14.7 million visitors each year respectively, these structures create attention for their areas. Every structure that has become the world's largest has gained recognition and, hence, attracted tourists. Before Covid affected global travel, Dubai drew in 16.73 million international tourists in the year 2019. It was calculated that through the combination of the travel and tourism sectors, the contribution to the UAE’s GDP was around AED 180.4 billion. Countries such as the United Arab Emirates are also able to brand big cities like Dubai as a place of modernity and wealth through a record-breaking building. The regional narrative is shifted from an oil-based economy to one supported by tourism and services. This attracts more people to live in these spaces, creating prosperity for the city and country. With this newfound wealth, the country turns into a place of consumerism, using architecture to advertise a superior way of life. 

More than just attracting attention, the actual architecture of the structure plays an important role in determining the economic success of the building.  Kevin Lynch sets standards for a successful structure in The Image of the City. The structure and identity of the building play an integral role in determining the building's effectiveness. Lynch states three aspects that every building or structure needs to deliver its main purpose. First, every structure must have “identity [...] meaning individuality or oneness” (Lynch). The Burj Khalifa takes a new approach to skyscrapers by featuring a triple-lobed footprint to model the Hymenocallis flower (Figure 2). 

 

Figure 2: Base Design of the Burj Khalifa


By using a local dessert flower as an inspiration, this building takes a truly original approach to skyscrapers by incorporating aspects of the region in a new and unique way. According to Lynch, the building must also “include the spatial or pattern relation of the object to the observer and to other objects.” The Y-shaped floor plan not only captivates the viewer but also maximizes the views that the building has to offer of the nearby Arabian Gulf. The building spirals from its flat base, changing its mass as it reaches the sky giving a new and recognizable pattern. Lastly, Lynch states, “This image must also have some meaning for the observer and to other objects.” The building clearly achieves this feat acting as a cultural icon for the entire middle-east. Burj Khalifa demonstrates the progress of the region while incorporating details that possess a traditional significance. With a record of 330,000 cubic m of concrete, 39,000 m/t of reinforced steel, 103,000 sq m of glass, and 15,500 sq m of embossed stainless steel, the Burj Khalifa is truly a sight to behold. The Burj Khalifa truly maximizes its potential by incorporating unique new designs that capture the attention of the viewer. For this reason, many people around the world travel to witness a groundbreaking achievement of modern innovation. Additionally, the inside portions of the building feature similar feats of incorporating the traditional culture of the region while also taking a modern approach. 

Although the building itself attracts people from around the world to this destination, the portion surrounding the structure uses various design tactics to capitalize on the attraction. This area directly outside of the Burj Khalifa holds one of the largest malls in the world, welcoming over 100 million visitors per year: The Dubai Mall. With such a large structure, the architects valued clear pedestrian circulation by eliminating secondary corridors and hidden corners. Not only did this enhance the journey throughout the area, but it also improved the visual connectivity to many stores in the Mall. In Concise Townscape,  Gordon Cullen defines pedestrian ways stating that “the pedestrian network links the town together in a viable pattern.” With the importance of creating a populated space where people want to come back, the quality of pedestrian spaces was greatly urged throughout this project. The mall does a terrific job of creating a people-friendly environment by eliminating roads of traffic near the main outside portion. This eliminates the fear of accidents and nearby traffic which can be unappealing to the pedestrians nearby. 

 


Additionally, throughout the pathways are intentionally placed rest areas with landmarks to attract people to that area. This allows for people to visit the mall for a multitude of reasons as it offers the opportunity to enjoy the scenery rather than forcing a consumerist journey. Along with this, the mall contains large-scale attractions such as the Dubai Aquarium and the Indoor Zoo. The design of having one of the largest acrylic viewing panels in the forefront of its plaza attracts many people to the area serving as a popular destination for many. In the text People In Cities, Jan Gehl analyzes a public space's most important feature by stating, “A bench to sit on or a couple of pigeons for entertainment can be enough to create life in a public space - but the most important element is other people.” The single reason the Dubai Mall is so successful is through the planning of each part of it to attract people. Even if someone doesn't visit the mall to engage in any specific activity, they are still able to find entertainment through the people around them, and the number of different attractions offers all sorts of guests the opportunity to interact with vibrant, human diversity. 

The results of the Burj Khalifa, in terms of economic succes, are far from perfect. In fact, most would consider the building to be a failure if they were only to look at the direct return from the building itself. Although this may be true about the Burj Khalifa, the economic impact of the building to the area along with the prestige it brings to city makes this experiment one of great value. When we are looking at record-setting buildings, pride could play a role in making the decision to incorporate groundbreaking designs into a city. However, these decisions don’t come without the strategic choice of fundamently changing the course of a city or even a country for the better. 


Bibliography 

 

Admin. “All about Burj Khalifa and Reference CAD File of Floor Plans.” DECODE BD. 

DECODE BD, December 17, 2020. decode-bd.com/all-about-burj-khalifa-and-reference-cad-file-of-floor-plans/.

 


Ahlfeldt, Gabriel, and Jason M. Barr. “The Economics of Skyscrapers: A Synthesis.” CEPR, 

August 20, 2020. 

cepr.org/voxeu/columns/economics-skyscrapers-synthesis. 

 

“Burj Khalifa Property Prices Fall to aed2,100 per Square Foot.” Accessed September 8, 2022. 

arabianbusiness.com/industries/real-estate/burj-khalifa-property-prices-fall-aed2-100-per-square-foot-444434. 

 

Cullen, Gordon. The Concise Townscape. Oxford: Butterworth Architecture, 1996.


“Dubai Tourism Statistics 2022 [Infographics]: GMI.” Official GMI Blog, August 31, 2022. 

globalmediainsight.com/blog/dubai-tourism-statistics/. 

 

“Fact Sheet - Burj Khalifa.” Accessed September 8, 2022. 

burjkhalifa.ae/en/assets/FACT-SHEET.pdf. 

 

Gehl, Jan. Cities for People. Washington, DC: Island Press, 2010.


Lynch, Kevin. 1960. The Image of the City. Harvard-MIT Joint Center for Urban Studies Series. 

Cambridge, Mass.: MIT Press.

 

Malek-Ahmadi, Pegah. “The Burj Khalifa - Rebuild the Middle-East.” East. Rebuild the 

Middle-East, July 12, 2018. rebuildthemiddleeast.com/art-and-architecture/2018/7/11/the-burj-khalifa. 

 

Sagredo, Rayen. “Burj Khalifa / Som.” ArchDaily. ArchDaily, October 23, 2017. 

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“The Dubai Mall: DP Architects.” Archello. Accessed September 7, 2022. 

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“The Tallest Buildings and Structures in the World throughout History Steel Buildings by Alan's 

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 “Tourism Indicators.” Ministry of Economy UAE. Accessed September 7, 2022. 

moec.gov.ae/en/tourism-indicators#:~:text=The%20Contribution%20of%20the%20Travel,11.6%25%20of%20the%20total%20GDP. 


The author's comments:

This piece was written for an Urban Design class called Architecture In The City. The figures mentioned in the essay can be found in the bibliography. 


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