The demand for holiday homes at offshore projects in Dubai is on the rise, a developer has said.
Kleindienst Group, the development firm behind the Heart of Europe project at The World, told Emirates Business 24/7 that the firm has been able to increase the prices of some its villas by more than 50 per cent since the beginning of the year.
Josef Kleindienst, chief executive of the group, told the news provider: "In December, when we started sales on 'Germany', a three bedroom villa on a 6,000 square foot plot was selling for about Dh4.3 million. Today, it is more than Dh6m."
He added that increased demand for the villas had encouraged the group to raise prices and boost profitability.
Mr Kleindienst also argued that much of the new demand was coming from wealthy Europeans who want exclusive, luxury holiday homes.
According to the recent Sales Price Index for Dubai, which was launched by the market analyst REIDIN.com in partnership with the Dubai government, Dubai property prices rose 0.7 per cent in the final quarter of 2009.