Residential units with 15 minutes walking distance of a metro station on Dubai’s Red Line have outperformed the wider residential market, according to a new report from real estate consultancy Knight Frank.
According to Knight Frank’s Dubai Metro 2018 report, between Q1 2010 and Q1 2018 prices for residential units within five minutes’ walk of a metro have grown 51 percent on average, compared to 28 percent on average across Dubai.
Prices for units within a 10 minutes’ walk saw average price growth of 58 percent, while those within a 15 minute walk saw average growth of 33 percent.
Despite the positive price growth trend, the report found that on average as one moves further away from the metro, the price per square foot begins to increase and achieves a premium over Dubai’s average rate.
The report noted that as of Q1 2018, the average price per square foot for buildings within five minutes of a metro was 4 percent lower than Dubai’s average price per square foot, compared to 9 percent for those within 10 minutes and 32 percent for those within 15 minutes.
As for rents, data shows that on a building-by-building level between Q1 2014 and Q1 2018, shows that rents in buildings between five and 15 minutes from a metro rose by an average of 1.8 percent, even as rents fell by 11 percent across the wider market over the same time period.
“It is not a surprise we are seeing increased appetite from developers to focus developments along existing and upcoming MRTS routes such as the Expo 2020 route, or Red Line extension, which is due to be operational by 2020,” said Knight Frank research manager Taimur Khan.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.
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