The developer of the Heart of Europe, part of Dubai’s offshore manmade World Islands, has increased prices by 450 percent by simply changing prices from dirhams to euros, in an audacious, headline grabbing move.

Master developer Kleindienst Group made the announcement today (Monday), saying it had been done to match other world-class real estate developments globally, and that the prices had been changed to euros to offer ‘the most authentic European experience’.

In a statement, the company said the handover of the first 2,000 residential and hospitality units was due to start this month, and said the prices of its ultra-prime villas, mansions, floating villas and apartment units would now increase fourfold. 

Turning point

Josef Kleindienst, chairman of Kleindienst Group, said: “Our price increase, specifically 4.5 times, marks a turning point for our existing investors as we enter a new phase in the development.

“The Heart of Europe has performed very well across the second home and hospitality segments in the last five years; our Phase 1 is getting ready for handover and all islands are now under construction.

“We firmly believe that our prominence within the UAE's fertile hospitality and second home sector, alongside our world-famous assets and experienced management team, is a potent combination which will support the company's future growth and will further reward our investors.”

Kleindienst’s press release said the price hike brings the project into closer parity with property hubs including Monaco, London, Moscow, Geneva, Vienna and Paris, where prime property prices can range between AED 59,000 to AED 235,000 per square meter.

While the development’s Floating Seahorse Villas will increase in price from AED 20 million to €20 million ($24.4 million), Beach Palaces on the Sweden island will rise from AED 80 million to €80 million. Units in the Côte d'Azur section of the project will now cost €1.7 million instead of Dh1.7 million previously.

“This is the largest jump in asset prices in a city and perhaps the only one in the world where property prices are appreciating despite the pandemic,” said Kleindienst.

“For property owners at the Heart of Europe, this means they could make nearly 400 percent profit when they sell their assets to new investors.

“The decision to change the currency denominations to euro is in line with our vision to offer the most authentic European experience to property buyers and visitors.”

In an interview with Zawya earlier this year, Kleindienst said construction of Heart of Europe had forged ahead during COVID-19 restrictions as the company had enacted its own island-based lockdown to allow work to continue.

Kleindienst said then that the Heart of Europe Côte D’Azur resort would open on schedule in the fourth quarter of 2020 despite the global pandemic, because there was ‘no other choice’ and ‘Life needs to continue’.

(Reporting by Imogen Lillywhite; editing by Daniel Luiz)

imogen.lillywhite@refinitiv.com

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© ZAWYA 2020