Twisting design for U2 tower was chosen after an international competition. The project has been shelved. (craighenry.com)

The U2 Tower, which was to be the tallest building in Ireland and home to recording studios for the Irish rock band, has been shelved.

It's among the latest victims of the economic downturn, which has sent Dublin property prices into a slide.

The Dublin Docklands Development Authority, which was behind the development, said Friday it has suspended plans for the tower but remains committed to building it.

The 120-metre tower was designed by Irish architects Burdon Craig Dunne Henry, which won an international competition with a twisting 30-storey design. The estimated cost was $308 million Cdn, spearheading a plan to revitalize the city's docklands.

An egg-shaped pod housing a studio for Irish supergroup U2 would have been installed on the upper floor and apartments in the building would have sold for more than $1 million.

Lead singer Bono, guitarist the Edge, bassist Adam Clayton and drummer Larry Mullen were partial owners of a development consortium awarded the construction contract last year.

The tower project was not universally popular in Dublin, despite its association with U2. Conservationists decried the height of the tower and some Dubliners said it would spoil the character of the city.

Ireland is the first of European country using the euro to fall into a recession and property prices have rapidly dropped after a 10-year boom.

If the project is revived at a later date, it is likely to be more modest.

The members of U2, among Ireland's wealthiest citizens, own several Dublin properties, including a riverside hotel that is also slated for a makeover.

With files from Reuters, Associated Press