So says the BBC. On various continents, and going back for over a century, the construction of new record-nearing skyscrapers seems to be a consistent canary in a coal mine indicating that an economic bubble exists and a financial crash will soon occur in a given society:
There is an “unhealthy correlation” between the building of skyscrapers and subsequent financial crashes, according to Barclays Capital.
Examples include the Empire State building, built as the Great Depression was under way, and the current world’s tallest, the Burj Khalifa, built just before Dubai almost went bust. China is currently the biggest builder of skyscrapers, the bank said. India also has 14 skyscrapers under construction.
“Often the world’s tallest buildings are simply the edifice of a broader skyscraper building boom, reflecting a widespread misallocation of capital and an impending economic correction,” Barclays Capital analysts said.
The bank noted that the world’s first skyscraper, the Equitable Life building in New York, was completed in 1873 and coincided with a five-year recession.