The price of luxury properties on the $5 billion The Heart of Europe project being built off Dubai’s coast are set to rocket, developer Kleindienst announced on Monday.
The developer revealed a four-fold rise in the price of their properties in a move it described as “to match other world-class real estate”.
The development on six islands, comprising part of the World Islands, Dubai, has already drawn investors from across the globe.
With handover to owners of the first 2,000 residential and hospitality units commencing this month, Kleindienst Group has announced prices for its mix of ultra-prime villas, mansions, floating villas and apartment units will now increase fourfold.
“This brings the exclusive project into closer parity with the most sought-after property hubs in the world such as Monaco, London, Moscow, Geneva, Vienna and Paris where prime property prices can range between AED59,000 up to AED235,000 per square metre,” it said in a statement.
Where previously Heart of Europe prices have been quoted in UAE dirhams and at a discount to their international equivalents, those numbers will remain the same, but will now be denominated in Euros, it added.
Kleindienst said this marks the project’s arrival on the “world-class real estate stage” and repositions its prices alongside the rest of the penultimate luxury segment.
Where the cost of a Floating Seahorse Villa was AED20 million, it will now increase to €20 million, while an ultra-luxury Beach Palace on the Sweden island rises from AED80 million to €80 million. Units in the Côte d’Azur section of the project will now cost €1.7 million instead of AED1.7 million previously.
A Floating Seahorse Villa will now cost €20 million
Josef Kleindienst, chairman of master developer 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.”
The move comes as recent data showed prime properties in the UAE remain undervalued when compared to equivalent real estate verticals in key international cities, including European cities such as Monaco, London and Paris as well as New York, Singapore and Hong Kong.
Luxury properties in Dubai are almost 10 times cheaper than in some of the world’s most expensive cities, according to latest research by Knight Frank, the global real estate advisory.
The Prime International Residential Index (PIRI 100), part of Knight Frank’s Wealth Report 2020, revealed that $1 million will get investors 154 square metres of prime real estate in Dubai.
Monaco topped a list of the world’s most expensive cities and the same spend will buy just 16.4 square metres, followed by 21.3 square metres in Hong Kong and 30.4 square metres in London.
In global terms, Hong Kong continued to dominate as the world’s most expensive big city market with an average price of $45,760 per square metres compared to Dubai at $6,729.
“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, pictured below.
“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.”
Once complete, The Heart of Europe will be host to at least 4,000 prime hospitality and second home units, including 15 hotels and a community of Floating Seahorse Villas.
Josef Kleindienst, chairman of master developer Kleindienst Group
Highlights include the jungle-flanked Beach Palaces of Sweden island, Bauhaus-inspired villages of Germany island, Honeymoon Island with its sunset and sunrise beaches, Portofino Hotel and the Côte d’Azur resort.
The Heart of Europe will also be home to several world firsts, including the Rainy Street, where guests will experience on command rain showers as part of an innovative climate control system.
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