Dubai’s Roads and Transport Authority (RTA) said the Dubai Metro project has given a vital boost to the real estate sector of the city by increasing value of land and commercial properties in the vicinity of Metro stations by as much as 7 to 34%.
According to a joint study conducted by the RTA’s Strategic Planning Department and the Dubai Real Estate Regulatory Agency (Rera), soaring demand for properties closer to the metro stations has resulted in their prices increasing by up to one-third of their pre-metro prices, the transport body said in a statement issued on Sunday.
“The study revealed the value of lands and properties adjacent to the Metro stations has soared since the operation of the Metro and reached in some cases up to 34 per cent as a result of the high demand for buying lands and renting properties in close proximity to the Metro stations; which is attributed to the ease of mobility, and the provision of multi transit options at lower costs of transit aboard the Dubai Metro; which is characterised by absolute minimal fares and high efficiency across the city, particularly for those inhabiting near the metro stations,” Abdul Mohsin Younes, the CEO of RTA’s Strategy and Corporate Governance Sector, said in the statement.
“This explains the huge impact of the transit network on the economy of the emirate, and reflects the importance of the Metro in pushing up the economic development drive in the field of property development, and stimulating the tourist and commercial movement in various parts of the Dubai,” he added.
“The study monitored the changes in rates of these lands and commercial properties in 2011 compared to the rates prevailing in 2009 before the opening of the Metro; which illustrate the importance of the Metro in boosting the market value of lands and properties, particularly in the surrounds of the metro stations,” Younes elaborated.
The RTA Strategic Planning Department conducted a study on the impact of the metro stations on the surrounding lands and properties in coordination with RERA, which provided the data about the rates of lands and properties in areas close or far from the Metro stations.
“A comparative study with the experiments of countries which have made advanced progresses in mass transit systems, particularly the Metro, such as the UK, Germany, Japan, Hong Kong, and the US, revealed that public transit means in general have a positive impact on appreciating the value and rents of properties, and that such rates made remarkable hikes ranging from 3 to 50%,” he added.
“In less than three years, the Dubai Metro has generated high economic returns highlighted by its ability of enhancing the competitiveness of the emirate as regards the attraction of commercial activities as well as the local and international events spanning conferences, sports events, and cycling races. Moreover, it contributed to augmenting the revenues of the emirate generated by advertising activities, naming of stations and leasing of commercial outlets,” the top ranking RTA official concluded.