It was Andrew Lawrence, a property analyst, who came up with what is popularly known as the Skyscraper Index. This is a concept that shows how the construction of the world’s tallest buildings have coincided with economic crises.
Essentially, whenever the record for the world’s tallest building is broken, which is that a new building becomes the world’s tallest building, an economic downturn begins.
Here’s how it has happened in the past, especially since the beginning of the 20th century.
Yes, Burj Khalifa is currently the tallest building in the world. But it won’t be for long. In Jeddah, Saudi Arabia, the Jeddah Tower is currently under construction. It is expected to be completed in 2020 and will stand at 3,300 feet.
The Jeddah Tower will literally tower over the Burj Khalifa and if the historical coincidences are anything to go by, it will also trigger an economic downturn. And it could happen before 2020, because even though the Jeddah Tower is expected to be fully constructed in 2020, it will surpass Burj Khalifa’s height before then.
Of course, a market crash, especially in India, could happen for a variety of other reasons. Despite what the government might want to tell you, 2017 has been a slow year for businesses, thanks to demonetisation and GST. The stock markets have run up, but there isn’t enough profitability for the bull run to continue for a long time. There have been corrections in the past few months and a stock market crash is likely as we lead up to the 2019 elections.
Even globally, the economic scenario is not too bright. A slowdown in the global economy is also very likely in the coming years and if it coincides with the construction of the Jeddah Tower, it will be a brilliant addition to the Skyscraper Index concept.
What does this mean for you and me then? Nothing, really. Our personal finance decisions should obviously not be taken on the basis of such theories and concepts. Our investments should be based on our own goals and objectives. And even if a crash does happen, it will be nothing else but good news for our long-term investments for the simple reason that we will be able to invest at a low.
But all of that aside, I recently visited the Burj Khalifa. The views from its 124th and 125th floor viewing galleries were breathtaking. Breathtaking enough for me to add a visit to the Jeddah Tower to my bucket list. Maybe a crash after the Jeddah Tower breaks the world’s tallest building record will give me the right opportunity to invest for the goal of visiting it. Now, that sounds like a plan!
Saurin Parikh 