Properties within a 10-minute walk of new Dubai Metro stations proposed on the Red Line extension are likely to see an uplift in value even before the line becomes operational, it has been claimed.
Once operational, prices could rise by up to 15 percent compared to similar homes located further from the metro stations, research intelligence firm ValuStrat said.
Plans to build a 15km extension of the metro line from Nakheel Harbour & Tower Metro Station to the Expo 2020 site were announced last week.
The line will include seven stations with construction work expected to start immediately.
ValuStrat said the new route recognises the mass transit demands of 240,000 residents with new stations planned in Discovery Gardens, Al Furjan, Jumeirah Golf Estates, Dubai Investment Park and the Expo 2020 site.
In a research note, it said: “Properties within a 10 minute walking distance of some of the proposed new metro stops may prove of stronger interest even in the short term as purchasers seek to identify investment areas for possible future gains.
“Upon commencement of train services sales values could potentially have increased by a premium of 10-15 percent compared to other parts of the community located further from the stations.”
It added that rental prices of properties close to the metro extension are also likely to rise, albeit at a later stage as tenants generally only pay higher rents once a new rail service is operational.
Dubai Metro passenger numbers have increased to almost half a million passengers a day.
“Locations as far as Al Furjan and Green Community will soon benefit from mass transit to all key locations in Dubai within a fraction of the time and travel cost, extending low-mid income people’s ability to commute to more distant locations for work and enjoying Dubai’s amenities and its social life,” said ValuStrat.
On Monday, Nakheel said more than 110,000 people who live in some of Nakheel’s biggest and fastest-growing communities are set to benefit from the the extension.
The developer said that it expected the value of homes in its communities to be boosted by the transport project.
A Nakheel spokesman said: “The Dubai Metro extension is a major boost for these communities – and the wider area known as New Dubai – both in terms of the residents who live in them and investors who have bought land or homes in them.
“Residents will benefit from a transport alternative to the car, while the value of investors’ properties will be enhanced.”
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