Sinking Real-Estate Market Forces Architects to Reconsider their Prospects In recent years, architects descended upon Dubai, eager to capitalize on its feverish building boom. But while the Persian Gulf city’s sprawling skyline is still dotted with cranes, the market here has fizzled. As of early February, more than half of Dubai’s real estate projects were on hold or canceled, from the 3,281-foot-tall Nakheel Tower designed by Woods Bagot to the Hydropolis, a 220-suite underwater hotel envisioned by designer Joachim Hauser. Analysts predict that Dubai property values, in total, will decline up to 60 percent in 2009 after years of record
Architects Hit Hard by Job Losses With its economy expected to shrink nearly 3 percent this year, Britain is facing the most severe recession in the developed world. And with troubled banks unwilling to lend, building projects are at a standstill and architects are hurting. “Every firm, regardless of size, is affected,” says John McAslan, chairman of London-based John McAslan & Partners, whose 100-person practice downsized by about 10 percent over the past six months. Image courtesy Richard Rogers Leadenhall Building in London, by Richard Rogers. Related Links: Global Report: Brazil Global Report: China Global Report: Germany Global Report: India
The construction industry lost considerable momentum in 2008, and McGraw-Hill Construction reported the value of new construction starts fell 15 percent last year, to $547 billion.
The latest forecast from McGraw-Hill Construction spells it out. In 2008, the leading market for multifamily construction was New York, which experienced a relatively modest 6 percent drop in the number of dwelling units started from the previous year. This compares to more severe 2008 declines in such markets as Washington, D.C. (down 23 percent), Atlanta (down 24 percent), Los Angeles (down 40 percent), Las Vegas (down 61 percent), Miami (down 60 percent), and Chicago (down 62 percent). In 2009, the New York market will see greater retrenchment, affected by the upheaval in its financial sector and declines in financial
A glance at past recessions gives us good reasons to be optimistic today. The U.S. construction industry is so intertwined with the well-being of the economy as a whole that even a hiccup in one can quickly cause nausea in the other. Consider that in 2006 there were $689 billion worth of construction starts. By the end of last year, that number dropped by $134 billion. When so much money is pulled off the table, the repercussions bounce around the globe. Architects make up a tiny part of this massive food chain, but that doesn’t matter if you have been
With layoffs sweeping the profession, architects of all stripes should prepare for the worst. Stephanie Houston’s saga is all too common these days. Armed with a master’s degree in architecture and six years of professional experience, Houston currently is hunting for work in San Francisco after getting laid off from a U.K.-based firm in October. She is taking all of the necessary steps: finessing her resume and portfolio, scouring the Web for job openings, networking at full-throttle. She even printed her own business cards. Ever determined, Houston has contacted 30 firms in the Bay Area; so far, only one has
With layoffs sweeping the profession, architects of all stripes should prepare for the worst. Stephanie Houston’s saga is all too common these days. Armed with a master’s degree in architecture and six years of professional experience, Houston currently is hunting for work in San Francisco after getting laid off from a U.K.-based firm in October. She is taking all of the necessary steps: finessing her resume and portfolio, scouring the Web for job openings, networking at full-throttle. She even printed her own business cards. Ever determined, Houston has contacted 30 firms in the Bay Area; so far, only one has
Firms Still Moving Forward Brazil Builds was the title of the Museum of Modern Art’s famous 1944 exhibition on Brazilian modern architecture, a show that offered a promising design panorama at a dangerous moment in world history. Today, the world faces a different kind of moment, but one similarly shadowed by economic fear. In Brazil, architects are trying to maintain a steady perspective—neither optimistic nor gloomy. Rendering courtesy Aflalo & Gasperini Prosperitas Building in S'o Paulo, by Aflalo & Gasperini. Related Links: Global Report: Brazil Global Report: China Global Report: Germany Global Report: India Global Report: Japan Global Report: Spain
Architects Hope to Benefit from Stimulus Package Correction appended April 3, 2009 Despite hopes that the casino business would weather the economic storm, almost all building sites in Macao have gone quiet—a stark reminder that not even China is immune to the impact of a global recession. “We look at this crisis with shock and horror,” says Keith Griffiths, Asia and Middle East chairman of Aedas. The firm recently halted work on its projects on Macau’s formerly booming Cotai Strip, including the Four Seasons Hotel and new phases of The Venetian mega-casino. Like other foreign firms operating in China, Aedas—which
RSS