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challenges and you have to find solutions. If you’re not prepared to do this then you shouldn’t go for such a project. To help us find solutions we visited other island destinations, such as the Maldives, and studied what they have done there.” The lack of infrastructure is actually a draw rather than a dis- advantage for Kleindienst Group. “Some developers won’t build here because there are no services or infrastructure. Where it’s a no-go area for them, for us it’s Christmas and Easter at the same time. We want to build our own infrastructure. There are plots in Dubai with projects on hold because the infra- structure is not available, but that is not the case here. If you are a writer you start with a blank sheet of paper. It’s the same here – you start with an empty island and you can do what you want. Germany island won’t depend on the Dubai Water & Electricity Authority for connectivity - we will generate solar power and we will take care of water and waste.” Of course, the financial crisis has created challenges for all developers, namely a greater difficulty in selling
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units. Kleindienst adds: “Before the crisis, developers in Dubai earned a lot of money very easily. Whatever you touched would make money. Now you have to be very precise and have a quality product in the right place. Location, supply and demand dictate the market. These rules did not exist before the crisis. Before, the customer would buy whatever you put in front of them; the customer today is very picky.” He adds: “Our project was devised before the crisis but we didn’t launch it. When the downturn hit
we started to value engineer the project and we have saved US$190 million. This is a process all the other developers on The World have to do. Now it is cheaper to build but you can’t sell as high – this means you really have to look at your costs. I assume that our neighbours on the other islands are going through a value engineering exercise and redesigning their projects.”
KEEPING THE FAITH
The fact that 11 of the 20 un-built villas on Germany have been sold since December 2009, at a time when ‘off-plan’ is a dirty word, is testament to customers’ faith in the project and the developer. Kleindienst adds: “We have been working in the Dubai market since 2003 – in Europe we are recognised as a real estate company which is doing business in Dubai and we have sold more than 1,000 units to European
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customers. We also built the European Business Centre and the European Logistics Center in Dubai Investments Park. Many of our existing customers know about our Heart of Europe project.” He adds that several of the customers have been captivated by the unique lifestyle options offered by The World. “In Europe, people buy a high-end villa but they cannot choose the interior. They can in this project. Also, it’s not possible to own a property on the beach in Europe – beach and water always remains public. But on The World islands you own the land and the water – you can build a jetty and bring your own boat. European customers are often surprised that Dubai made this possible.” Kleindienst shares his customers’ faith in the project
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and The World. “When the islands are finished they will become the most expensive real estate in the region. In the industry we say ‘location, location, location’ – these islands are the perfect location. “We started this project in 2006 and I think we understand Nakheel’s vision. They built this project in the middle of the ocean – nobody has done anything like this before. The engineering has been done in the right way. I compare the islands with Jebel Ali Port. People questioned the need for the port; it’s now the centre for logistics. I believe that The World islands will become the centre for high-end tourism.” But does the success of the Heart of Europe depend
6/7/9 Villa interior, island of Germany 8 Island of Germany
on the other islands being completed? Not according to Kleindienst. “The smaller islands depend on their neighbours being built. Our project is big enough to survive on its own. If no other projects are built then we will be fine,” he says. Kleindienst smiles and points to a nearby cluster of untouched islands with virgin white sand, framed by the still turquoise water of the Gulf and possibly the most spectacular view of the emirate’s skyline. “What’s wrong with having these as neighbours?” He may have a point.
jun-sep 2010
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