Tenants in Dubai are choosing properties that are closer to the metro station, says UAE property firm Asteco, while adding that renters are ready to pay extra for a property near a metro station.
Dubai inaugurated its metro network in September 2009, and is the first urban metro network in the Gulf?s Arab states. The 52.1km Red Line has 29 stations, four of which are underground. The line runs from Rashidiya to Jebel Ali and passes the American University of Dubai. It serves an estimated 32,000 passengers an hour. The Green Line of the Dubai Metro project is 23 km route and covers number of government offices, health care facilities, and commercial business district areas of Dubai.
The Green Line passes through some vital locations such as Al Ahli Club, Lulu Centre, Al Bustan Centre, Al Ittihad Coop Society, Ministry of Education, Ministry of Public Works and the Customer Service Centre of Dubai Municipality in Al Twar.
Asteco chief executive Elaine Jones said that the Dubai Metro has added a new glamour to the property market and the rental disparity becomes more pronounced in due course. Asteco gives an example of a two-bedroom apartment within walking distance of the Mall of the Emirates metro station. These properties will be leased between Dhs 60,000 and Dhs 65,000 per annum whereas similar dwellings a couple of kilometres away go for Dhs50,000 to Dhs55,000. The trend is similar for properties near DIFC and Deira stations.
As the Metro’s Green Line becomes operational on September 9 adding another 18 stations and 23 kilometres to the network, the pricetag for properties across these areas are also likely to go up.
Asteco notes that pProperty prices are no longer based on its geographical location, but also on the basis of its access to a metro station.
Sources: Zawya, 7days.ae, Ameinfo