The main factor for the increased cost is the change in the interior designs on the demand of Armani hotels. Also, the final height of Burj Khalifa is 100 meters higher than the initial height set. Moreover, Emaar, the owner of Burj Khalifa, was affected by the downturn in real estate market in Dubai. Other than the price of property slump, the prices of raw materials for construction such as iron, aluminium, cement and commodities rise due to the downturn of global economy in 2008. The entire development cost is around 20 billion dollars, out of which the tower itself has already cost 4.2 billion dollars. The project’s earned value decreases to the initial plan and cost due to the overrun of its budget. However, the net profit has increased 10 times compared to …show more content…
It is the landmark structure and a symbol for Dubai which is also known as the world’s tallest building. It attracts attention from people across the globe starting from the planning stage of construction. The successful completion construction of Burj Khalifa plays an important role as a business hub of Dubai as well as a tourist attraction as it boosts the economy of Dubai. Besides being an architectural feature of the city, it also has a socio-economical impact. Burj Khalifa can be considered as a successful accomplishment that increases the competitiveness of the construction companies involved in the market. For example, Samsung Engineering, which is the main construction company of the Burj Khalifa project, was able to involve itself in Dubai as its previous construction experiences for the Taipei 101 Tower and Petronas Tower. Companies obtain a reputation as the constructor of the world’s tallest skyscraper, a development that required the use of various cutting edge technologies throughout the process of construction of Burj Khalifa. On the other hand, Burj Khalifa drives investment towards the downtown areas in order to have a central business district. As the government try to shirt the economy basis from oil to service and tourism, Burj Khalifa is iconic in the development to maintain the cash flow into the country. Not just a beacon of inspiring structural