By Elsa Baxter
Real estate agents report prices of units close to Dubai Metro stations are up 6.5%, rents likely to follow.
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.
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.”
Why do these real estate hucksters talk about specifics in terms of percentage increases, yet never off a single specific. Beware renters, the spin is not to be believed for a second. If you can afford an apartment almost anywhere in Dubai you can afford a car. You are hardly going to slum it on the train, except for the first day's excitement.
true but some people just dont want to drive! and they would save alot of money on insurance... fines,fuel.parking etc
Geriant - I have two cars but would still prefer to use the Metro simply b/c I dont have a parkign spot at work!
It looks like we will have no option but to use the metro. I see that Mall of the Emirates is now joining Burjaman (both on rail lines) with upcoming parking charges. It will be interesting to see, how in these difficult times, retailers are hit by declining footfall and revenues (as the traders in Burjaman will tell you) by people not being to just arrive at these monolith shopping centres and browse (and buy) without having to pay parking charges. I for one will show my disapproval with MOE, as I did with the Burjaman and will shop where there is free parking.
if yr work is 5 walking min from the station, unlikely i'd c u walking in this nice 50c summer.
If you look at the movement there, the tenancies, itâ€™s much more vibrant than other places, and itâ€™s good value for your money. â€œItâ€™s plateaued out and youâ€™ll see rents there reacting to the metro, possibly more than anywhere else.â€ ---------- sunkas --------- Estate Planning
Homes near the stations are not rising in value. They might be falling less than those around them. I mean, JLT prices down 50%+ from peak. Even if some have a premium of 6.5% through proximity to the metro (which seems quite plausible), that does not equate to rising property prices, it still equates to big, big falls. Yet more desperate, desperate spin from the real estate industry of Dubai.
The usual nonsense from the usual suspects.. as if ppl living in nice neighbourhoods will actually use the metro... cmon, give us a break! everyone knows that the metro will only be used by laborers and service staff..
I keep on hearing that people are leaving and that Dubai will soon become a ghost town and that prices will crumble but the fact is that evertything is getting more expensive: - MOE, Ibn Battuta and all malls will very soon start pay park. - More Salik will be coming - Charges on cars will be increased by a significant portion and................ Real estate is no exception!!!! They keep on saying that people are leaving but i only see people around. It's time to visit an optician! Yesterday, i was at Dubai Mall, everything was FULL. We went to Chili's and it took them 45 minutes to serve us! After a complaint to the manager, they gave us a free ice cream as compensation! Just today, i got Gulf News. I counted the number of pages of the real estate sections (Freehoold + Property 1+2) and guess what, the number of real estate pages is more than the entire newspaper (please check it out yourself now!). I checked with my ad agency and they confirmed that the smallest ad 3X2 would cost 3,000 Dhs Cash after discount! Do you think Burjuman are crazy to start charging for parking if it was not OK. Same applies with MOE or any other mall and of course, the super greedy-stingy real estate agents who would miss call you so they dont pay a call to sell their own apt! Some people are negative about Dubai like Geriant who does not seem to like the a world class metro and some are positive like me, but the truth that can not be hidden is that those people are not dumb. They know what they are doing and if such steps would affect their business by 1%, they would not have done it or at least, reverse their decisions. Everything is FULL. We wait for summer so we can find parking easily but this is not taking place. I am pushing my family to stay home instead of the disgusting incredible traffic around. Even the appointments section in Gulf News is very thick today!
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.