How property prices and rents will rise along the route
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When the new line comes into operation in 2029, around one million people living in the covered areas will directly benefit from the project.
Rents and property prices in key areas of Dubai such as International City, Silicon Oasis, Ras Al Khor, Mirdif, Al Warqa and others will see double-digit increases which will be connected through the upcoming Dubai Metro Blue Line. Dubai.
When the new line comes into operation in 2029, around one million people living in the covered areas will directly benefit from the project.
The Dubai Metro expansion was announced on Friday, spanning more than 30 km and connecting nine key neighborhoods, including Mirdif, Al Warqa, International City 1 and 2, Dubai Silicon Oasis, Academic City, Ras Al Khor Industrial Area, Dubai Creek Harbor and Dubai. Festive City.
Real estate industry experts suggest that people will increasingly begin to move to these areas or prefer these places that will be connected to the Blue Line in the coming years.
Ayman Youssef, CEO of Coldwell Banker, anticipates a significant increase in the attractiveness of locations connected to the Blue Line, as the subway line will reduce both the time and expenses of travelers traveling to and from those areas.
“The estimated increase in rents and prices could range between 10 and 25 percent. If the current trend remains unchanged, we can project further growth in Dubai Creek Port as the market focuses on quality, integrated communities. The next place is Dubai Silicon Oasis, an area with a very good price for the middle class.”
saying Youssef.
Farooq Syed, CEO of Springfield PropertiesIt also foresees an increase of between 10 and 15 percent in certain areas that will be connected to the Blue Line.
“There is huge demand in Dubai Marina and JLT due to Metro connectivity and that is why we are seeing much higher rents even in older buildings. Areas such as International City, which saw a slight drop in demand due to lack of public transport, will now see a large increase in rents and prices in areas of International City, Al Warqa, Al Jadaf, Ras Al Khor and Silicon Oasis. ”
he said.
Citing an example, he said that areas like Karama and Bur Dubai are still in high demand due to metro connectivity as people travel from these areas to Business Bay, Media City and Internet City for work with ease.
Outperforming other areas
Farooq Syed He said the Blue Line will also help reach the 2040 plan’s goal of 5.8 million residents, as the city needs affordable places to stay.
“If we look at the prices where the metro touches, they have increased a lot and are becoming unaffordable. And for Dubai to remain an attractive city for quality talent, it is necessary to have good quality affordable housing and good connectivity.”
Wael Makarem, Mena Senior Market Strategist at Exness“Historically, areas within reasonable walking distance of subway stations have outperformed other areas and seen a faster pace of price and rent increases.
“From the first quarter of 2010 to the fourth quarter of 2022, average residential prices in Dubai increased by 24.1 percent annually, while those within a 15-minute walk from a metro station increased by average 26.7 percent with peaks of 43.8 percent in certain areas. , a performance that could be replicated along the Blue Line. These areas also tend to see more resilient price levels during recessions.”
saying Makarem.
Densely populated areas
Makarem He added that the new subway line could have the most obvious impact on prices and rents in more densely populated or less expensive areas, as the infrastructure will make them more accessible to a greater number of residents who may need public transportation services.
“At the same time, prices and rents could rise more rapidly in proportion to proximity to actual subway stations in all areas where the new subway line will be built, as walking distance could remain an important metric. . Areas with lower supply of residential and commercial units could also see larger increases. Prices in International City have increased faster than other areas such as Silicon Oasis and Mirdif with an average month-on-month increase of 0.98 percent compared to 0.55 percent and 0.67 percent, respectively, “In the last 6 months, a performance that could accelerate with the arrival of the metro line.”
saying Makaram.
News Source: Khaleej Times
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