Source – Khaleejtimes

DUBAI — Properties nearby metro stations may see rising prices after the Red Line is launched in September.

Areas such as Jumeirah Lakes Towers and Business Bay could be sold at a 10 per cent premium because of the number of metro stations nearby,
experts say.

Analysts at Dubai-based Investment Boutique have set up a tracker system to monitor price increases of properties nearby metro stations.

“In cases around the world where a new metro system has been introduced, we have seen a premium on properties nearby the stations,” said head of research Safeena Rangooni-Lakdawala.

“Dubai is not a city which relies a great deal on public transport, so we will have to wait and see whether the effect will be that pronounced.

“But we should see a premium of around 10 per cent on properties that are next to the stations, than those which are up to 5km away.”

Rangooni-Lakdawala said that the effect would most likely be seen on properties between the Trade Centre and Business Bay — where there are four stations. In addition, Jumeirah Lakes Towers effectively has two stations.

Although other areas such as Dubai Marina have a station, residents still need to cross the bridge over Shaikh Zayed Road, before they can reach
the metro. Therefore the effect would be less pronounced there, said
Rangooni-Lakdawala.

The 52km Red Line runs the length of Shaikh Zayed Road and opens in September. It will be supported by a fleet
of 778 RTA buses.

Elaine Jones, CEO of property management company Asteco, said that a lot would depend on the ease of access of the metro. “When we look at a property, we look at convenience and connectivity,”
she said.

“It will be a benefit to the nearby community.”

“How it affects prices will depend on the ease of getting to and from the stations, and the park and ride facilities. Places such as Discovery Gardens, in particular, will benefit because of the number of buses there.”