Construction halted on 'world's tallest' tower

The credit crunch has caused state-owned property developer Nakheel to suspend construction of what is set to become the world's tallest tower in Dubai.

Work on the one-kilometre high Nakheel Harbour and Tower- the plans for which were unveiled in October of last year - has been put on hold for a year following the onset of the credit crunch and the deteriorating market conditions.

"This is part of our readjustment of our immediate business plans, to better reflect the current market trends and match supply with demand," a spokesperson for the company said in a statement, adding that foundation work for the tower is likely to take three years to complete.

Elsewhere in the emirate, a report by Asteco has revealed that rental rates for apartments levelled off during the course of 2008.

The average rent for a one-bedroom apartment now stands at AED123,000 (GBP22,480), while three-bed examples currently command rates of AED243,000.

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