Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
UAE
Print
Email
Discuss this article (13 Comments)Property prices up on Dubai Metro route
by This email address is being protected from spam bots, you need Javascript enabled to view it on Sunday, 28 June 2009
STATION STOP: Homes close to Dubai Metro stations have increased in price, estate agents say. (Getty Images)
It’s not due to open until September, but Dubai Metro is already starting to affect the city’s property prices with homes near stations selling for more money.
Flats in Jumeirah Lakes Towers (JLT), close to stations on Sheikh Zayed Road, are selling for 6.5 percent more than units further away, reported The National.
“For residential [sales] we’re seeing a higher demand because of accessibility to the metro, but this is only for properties situated almost directly outside a station,” said Michael Michael, the sales director of Landmark Properties.
Related: MAP: Dubai Metro Red Line
Related: Dubai Metro fares revealed
Several other agencies told the daily paper that more people were enquiring about flats within walking distance of metro stations.
This is a positive sign for Dubai’s real estate market, which has had a difficult year with the prices of flats and villas plummeting by 34 percent, according to the Landmark Advisory.
The true extent of the metro’s effect over house prices will only be felt after the Red Line is up and running from September 9, some property experts said.
Andrew Delport, the head of property management at the Dubai-based property portal Gowealthy.com, said units near the metro would recover first.
He added that for the rental market, the metro would have the biggest effect on prices in Dubai Marina.
“With the metro on the Marina side of the freeway – you’ll definitely see the impact.
“If you look at the movement there, the tenancies, it’s much more vibrant than other places, and it’s good value for your money.
“It’s plateaued out and you’ll see rents there reacting to the metro, possibly more than anywhere else.”
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
cut and paste
Posted by gamby on Sunday 19 July 2009 at 16:43 UAE time
Bloggers, Omar is a cut and paste artist, most of his comments are cut and paste from previous months and just rolling it up in most of the issues here.....he's a paid blogger. Simply ignore him.
Posted by gamby on Sunday 19 July 2009 at 16:43 UAE time
Bloggers, Omar is a cut and paste artist, most of his comments are cut and paste from previous months and just rolling it up in most of the issues here.....he's a paid blogger. Simply ignore him.
Another too Early judgment
Posted by The Don, Dubai, United Arab Emirates on Monday 29 June 2009 at 09:12 UAE time
Perhaps it is true that these prices went up from a 50% decline but it will be too early to judge the impact a metro will have on real estate sector. We have to wait until the metro start operations and the traffic/demand on this service start to establish itself, then any one can start report on observations/trends in prices, traffic, demand...etc.
For these comments that it is a healthy sign malls in Dubai will start, or started to charge parking fees.. I fully disagree with their rational and conclusions. Simply the revenue model for malls is to rent retail space and attract shoppers to come at minimal cost (that constitute only transportation costs). Starting to charge money for parking simply indicates that people are coming to malls (where else they can go in this nice hot 50 degrees outside) but they are not buying at volumes sufficient to keep shops open and profitable. It means malls decided to shift to an entertainment park model and charge people for entry through the parking fees. This is not a healthy sign about Dubai retail sector nor it is a healthy sign about consumer behaviors.
Posted by The Don, Dubai, United Arab Emirates on Monday 29 June 2009 at 09:12 UAE time
Perhaps it is true that these prices went up from a 50% decline but it will be too early to judge the impact a metro will have on real estate sector. We have to wait until the metro start operations and the traffic/demand on this service start to establish itself, then any one can start report on observations/trends in prices, traffic, demand...etc.
For these comments that it is a healthy sign malls in Dubai will start, or started to charge parking fees.. I fully disagree with their rational and conclusions. Simply the revenue model for malls is to rent retail space and attract shoppers to come at minimal cost (that constitute only transportation costs). Starting to charge money for parking simply indicates that people are coming to malls (where else they can go in this nice hot 50 degrees outside) but they are not buying at volumes sufficient to keep shops open and profitable. It means malls decided to shift to an entertainment park model and charge people for entry through the parking fees. This is not a healthy sign about Dubai retail sector nor it is a healthy sign about consumer behaviors.
Natural phenomenon
Posted by Nuts on Monday 29 June 2009 at 08:29 UAE time
Globally it is a natural phenomenon that real estate prices increase near the railway stations, further, the fast food joints flourish near railway station, this is also a global phenomenon.
The surprising thing to note is the prejudice demonstrated by some of the commentors. The metro has multiple priced tickets with differing facilities, still people dismiss this fact by assuming that only labourers will travel, why not people who are keen to live an environment friendly life?????? one extreme calls it a spin by real estate agents and try to prove the point with unverifiable statistics, while others go the other extreme end to say that everything is hunky dory......
Raise in real estate prices along the stops for any rapid transport system is a common and natural phenomenon like sunrise and sunset. Why can't we take things at face value without trying to assign an ulterior motive to everything.....
Posted by Nuts on Monday 29 June 2009 at 08:29 UAE time
Globally it is a natural phenomenon that real estate prices increase near the railway stations, further, the fast food joints flourish near railway station, this is also a global phenomenon.
The surprising thing to note is the prejudice demonstrated by some of the commentors. The metro has multiple priced tickets with differing facilities, still people dismiss this fact by assuming that only labourers will travel, why not people who are keen to live an environment friendly life?????? one extreme calls it a spin by real estate agents and try to prove the point with unverifiable statistics, while others go the other extreme end to say that everything is hunky dory......
Raise in real estate prices along the stops for any rapid transport system is a common and natural phenomenon like sunrise and sunset. Why can't we take things at face value without trying to assign an ulterior motive to everything.....
recovery?
Posted by the dude, dubai, uae on Sunday 28 June 2009 at 21:22 UAE time
People say the bubble burst in dubai. I dont agree. If everywhere else in the world was good BUT ONLY Dubai real estate prices sank as they did, then, YES i would agree. The fact is that prices went down drastically because of what happened in the world, and now there is no liquidity, and banks do not lend, and therefore people CANNOT buy. Trust me, people WANT to buy, but they CANNOT. You have all these experts talking about bubble burst and comparing dubai with singapore.. but there is one thing that everyone ignores.. that dubai is a tax haven. There is no income tax for individuals. This is the difference with other countries. Wait until banks start lending again. You think all the speculators left and prices will crash down?? Have you been to Mall of Emirates lately? Have you seen the crowd over there? Speculators left because they know no one can get loans to buy. They will be back very quickly. Im very confident about dubai. They are working on infrastructure now and things are just better and better.
Posted by the dude, dubai, uae on Sunday 28 June 2009 at 21:22 UAE time
People say the bubble burst in dubai. I dont agree. If everywhere else in the world was good BUT ONLY Dubai real estate prices sank as they did, then, YES i would agree. The fact is that prices went down drastically because of what happened in the world, and now there is no liquidity, and banks do not lend, and therefore people CANNOT buy. Trust me, people WANT to buy, but they CANNOT. You have all these experts talking about bubble burst and comparing dubai with singapore.. but there is one thing that everyone ignores.. that dubai is a tax haven. There is no income tax for individuals. This is the difference with other countries. Wait until banks start lending again. You think all the speculators left and prices will crash down?? Have you been to Mall of Emirates lately? Have you seen the crowd over there? Speculators left because they know no one can get loans to buy. They will be back very quickly. Im very confident about dubai. They are working on infrastructure now and things are just better and better.
Click here to post a comment
MORE FROM ARABIANBUSINESS.COM
TOP IN MIDDLE EAST REAL ESTATE
TOP MIDDLE EAST BUSINESS STORIES
ALSO IN MIDDLE EAST REAL ESTATE
LATEST MIDDLE EAST BUSINESS NEWS
- Healthcare: Daman gets tough on healthcare fraudsters
- Financial Markets: NASDAQ Dubai chairman resigns
- Culture & Society: Saudi floods kill at least 13 on first day of hajj
- Construction & Industry: Dubai firm allays fears over future of $316m Indian IT city
- Education: Mubadala completes $1bn financing for uni project
SHARE PRICE CHECK
RELATED STORIES
Dubai Metro Fares
3 stories- Nearly 400 Dubai Metro passengers fined so far
17 Nov '09 | News - Construction work completed on Red Line stations
15 Nov '09 | News - Metro users 40% up on pre-launch estimates - RTA
9 Nov '09 | News
Metro 2009
3 stories- 82% oppose lifting of Dubai Metro midday work ban
31 Aug '09 | News - Dubai Metro cost set to rise by over $3bn
30 Aug '09 | News - 10 metro stations to open on Sept 9 - RTA
30 Aug '09 | News
Landmark Advisory
| 23 stories- No price uplift seen on homes near metro - Landmark
4 Nov '09 | News - Abu Dhabi rents show small declines in Q3
25 Oct '09 | News - Dubai villa prices 'may have hit bottom' - Landmark
4 Oct '09 | News
Mobile
