By Michael Fahy
Research concludes units in Dubai Marina and JLT close to the metro had not seen the expected boost in prices
The building of Dubai's metro system had an impact in terms of the amount of deals done during its construction, but it is still too early to say what the long term effect of the transport system will be, according to a new report by ReidIN/Unitas.
Its report stated that studies in other cities generally found that when a metro opens, homes in nearby areas increase in value. This is not universally true, though, and in certain cases such as San Francisco it has had an adverse effect on prices.
The two most measurable areas in terms of connections in Dubai were the Dubai Marina and Jumeirah Lakes Towers districts "due to the orientation and zoning of the stations".
However, a price analysis conducted found there was "no obvious impact" on the value of homes in terms of their closeness to a station when measured against other properties in the communities.
"However, in both cases, an increase in transactional activity was witnessed during the time of the completion of the metro. We opine that this surge was originated by the speculators trying to capitalise on the 'metro effect'," the report said.
It added that the lack of a discernible price increase was probably due to the fact that not enough time has lapsed within either community for an impact to have been felt and that the quality of fit-out within each building was more likely be an influence. In the marina, proximity to the metro had a slightly negative effect, which was again attributed that some of the buildings further away had a better build quality.
Despite this, it predicted that with the passage of time, homes nearer the metro should increase in value.
"As public transportation becomes more embedded in the fabric of domestic society, there will be a positive impact," it added.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
The metro is largely used by "guest" labour and budget tourists. So it will have little effect on property prices