By Sam Bridge
Dubizzle Property says rents in Discovery Gardens, Dubai Investment Park and Jumeirah Golf Estates likely to rise when metro expansion is complete
Demand for properties located close to the Route 2020 Dubai Metro expansion is growing as prices continue to soften, according to new research from Dubizzle Property.
The property platform said rents in Discovery Gardens, Dubai Investment Park and Jumeirah Golf Estates, which were among Dubai's most popular residential communities in 2019, are likely to rise once work on Route 2020 has been completed.
With stations in five key areas, the 15km long metro extension is designed to cover populated areas in the city and make the commute for residents and visitors easier.
The Route 2020 is set to be completed before the Expo 2020 Dubai event kicks off in October and Dubizzle Property said momentum for nearby real estate has continued into the first two months of 2020 with 1-bedroom apartments particularly in demand.
Given the closest access to the current metro line, Discovery Gardens was the most sought-after community among tenants, it noted, adding that renting a 1-bedroom apartment in the community has become more affordable with rents softening by 8 percent in 2019.
The prices have softened further in February, with the prices now averaging AED46,000 while the average annual rent for 2-bedroom apartments in the community now average AED76,000.
The research showed that the residential community in Dubai Investment Park has also become increasingly affordable, with prices for 1-and 2-bedroom apartments softening by 18 percent and 14 percent respectively through 2019.
Rents for 1-bedroom apartments currently average AED43,000 and 2-bedroom apartments stand at AED60,000.
Jumeirah Golf Estates, a luxury residential golf community located close to the Eexpo 2020 site, was the third most popular area along the new metro line, according to the report.
Rents for 1- and 2-bedroom apartments in the community softened by 5 percent and 11 percent respectively in 2019. Rents for 1-bedroom currently average AED52,000, while 2-bedroom apartments average AED80,000.
“The price trends for the three areas that we’ve explored are not surprising as they are in line with the overall market trends. However, as the new Route 2020 metro line nears completion, we can assume that these areas will become more popular among UAE residents given the ease of accessibility. Those who have moved into these communities over the last year have had a first mover’s advantage, as once the metro line is fully functional, naturally the rents in these communities will rise in line with demand,” said Matthew Gregory, director, Dubizzle Property.