“Further work on the foundations of Nakheel Harbour and Tower will commence in 12 months,” said a Nakheel spokesman. “The foundation works are likely to take approximately three years to complete.”

Several employees working on the project had been laid off because of a delay in construction work “until further notice”, a senior project manager said.

The economic downturn has once again delayed the work on the envisioned 1km high tower in Dubai, and other projects from Nakheel, such as Trump International Hotel and Tower and Gateway Towers, have also been affected by the slowdown in the property market.

When finished, the tower will contain more than 150 elevators spread across 200 floors. The tower will be home to more than 55,000 people with its 19,000 apartments and 35,000 hotel rooms. Additionally, there will be 100 luxury suites located on the upper floors.

Work is expected to be finished within 2020 if everything goes according to plan, and the total cost will be Dh140bn ($38.12bn)

The stalling of the tower is the latest in a string of delays on Nakheel’s most prominent projects as a result of the slowdown in the property market. Other developments that have been affected include the Trump International Hotel and Tower, Frond N villas, and Gateway Towers, as well as parts of the Waterfront and Palm Deira. In late November, the company laid off 500 employees, about 15 per cent of its labour force, “in light of the current global market conditions”.

Developers across the UAE have said they were reviewing their projects and retrenching staff because of the sharp drop in sales. Residential property prices dipped 8 per cent in the fourth quarter of last year, according to Colliers International. Ian Albert, the consultancy’s regional director, said “tighter liquidity, selective lending and growing negative sentiment are all bringing about these changes”.

Dubai not the only one

Dubai was not the only affected emirate. Aldar Laing O’Rourke, a joint venture between Abu Dhabi’s largest developer and a British construction company, announced last week it was cutting between 200 and 250 of its 1,900 professional employees because of the changed economic environment.

Under Nakheel’s plan, which was launched with a flashy ceremony at Cityscape Dubai in October, the multibillion-dirham tower would be the centrepiece of a 270-hectare marina development called Nakheel Harbour and Tower near Ibn Battuta Mall and the Arabian Canal.

The tower would have 200 floors and 150 lifts. It would have been surrounded by as many as 40 other buildings, ranging from 20 to 90 floors. The area would be home to 55,000 people and have enough offices for 45,000 people.

Nakheel officials said at the launching ceremony that the entire Nakheel Harbour and Tower project would take 10 years to complete in phases and require 30,000 labourers.

The National

Click image for large view

We announced yesterday that Nakheel had revealed their plans for a 1km high tower. As Cityscape Dubai 2008 has officially opened, Nakheel has revealed more information about their tower:

• 200 stories high
• Will contain more than 150 elevators
• 19 000 apartments
• 3 5000 hotel rooms
• 100 luxury suites located on the upper floors
• Expected to be finished within 2020
• Total cost: Dh140bn (USD $38.12bn)