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Dubai Metro Blue Line: Off-plan unit launched in 9 areas to see increase – News

Published: Sunday, December 3, 2023, 2:02 p.m.

Last update: Sunday, December 3, 2023, 4:19 p.m.

The nine key neighborhoods that will be connected by the Dubai Metro Blue Line are becoming the main focus of local and foreign property developers, with many new projects coming to market in the coming years.

As a result, the portfolio of off-plan units will see an increase in the coming years, especially in the apartment category.

The newly launched Blue Line, consisting of 14 stations, will connect the emirate’s International City 1, International City 2, Creek Harbour, Academic City, Al Warqa, Mirdif, Silicon Oasis, Ras Al Khor Industrial Area and Festival City with the Airport Dubai International. This will bring travel time between these destinations to between 10 and 25 minutes, carrying 200,000 passengers per day by 2030 and 320,000 by 2040, as the population of these areas will increase significantly.

As previously reported by Khaleej Times, industry executives and analysts expect metro connectivity to boost property prices and rentals by 25 percent.

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Considering the strong demand for residential units in these areas, developers will increasingly focus on these areas to launch their off-plan units, which have been the driving force behind the local real estate market.

Below are some ongoing projects in key areas linked by the Blue Line:

International city:

– Warsan Village (estimated value 600 million dollars) by Nakheel

– Dragon City Towers (estimated value $196 million) by Nakheel

Dubai Silicon Oasis

Tria (estimated value $140 million) by Deyaar Property Management

Dubai Creek Port (all by Emaar):

– Cove II (estimated value 160 million dollars)

– Creek Palace (estimated value $100 million)

– Dubai Creek Tower ($1 billion)

– Creek Waters (estimated value $350 million)

Emaar is developing the entire Dubai Creek Port and projects worth almost 66 percent of the total development value have been completed, while the rest is in the early stages.

Dubai Festival City

Al Badia Heights Villa Complex (estimated value $150 million) by Al Futtaim Group (under construction)

Wael Makarem, Mena senior market strategist at Exness, said investing in existing real estate units or construction projects in areas served by the Blue Line could become more attractive as they could see greater demand for residential and commercial units thanks to greater accessibility.

“The metro line could accelerate the development of areas near its stations and could help attract real estate investors looking to access faster-growing areas,” he said.

Route and connectivity

The Dubai Metro Blue Line comprises two main routes. The first route starts at the Creek Interchange Station on the Green Line and passes through Dubai Festival City, Dubai Creek Harbor and Ras Al Khor, before reaching Dubai International City 1, which has an interchange station. The route continues to Dubai International City 2 and 3, extending to Dubai Silicon Oasis and Academic City. This section is 21 km long and has 10 stations.

The second route starts at the Centrepoint Interchange station on the red line in Al Rashidiya. It passes through Mirdif and Al Warqaa and concludes at the Dubai International City 1 interchange station. The project also includes the construction of a metro station at Al Ruwayyah 3.

Off-plan launches

According to Property Monitor, launches of new off-plan development projects remain at record levels, with just over 11,500 off-plan units added to the market for sale with a combined expected gross sales value of Dh25 billion. Apartments account for 81.2 percent by volume, while townhouses and villas account for 17.2 percent and 1.6 percent, respectively.

So far this year, new project launches have surpassed just over 77,000 units and Dh230 billion in added sales value, eclipsing year-end 2022 figures by over 20,000 units and Dh70 billion in value. .

With more than 100 additional projects in the planning phases being tracked by Property Monitor, new launches are anticipated to maintain their historically high levels for at least the rest of the year and well into 2024.

Data for the month of October showed that off-plan registrations represented 53.9 percent at the end of October 2023 with 6,534 sales recorded.

Avin Gidwani, CEO of BNC Network, said the prospect of the Blue Line connecting several areas will attract the attention of developers. “The increased accessibility and greater attractiveness of these connected regions will encourage more developers to consider launching projects in these areas, anticipating higher demand and potential growth due to better connectivity,” he said, adding that these areas will definitely be witnesses an increase in the offer of services. The plan unit is launched within certain key areas that it connects. “In particular, we would expect to see new developments in International City, Dubai Silicon Oasis and Dubai Creek Harbour.”

Farooq Syed, CEO of Springfield Properties, said the Metro extension will create a positive impact for off-plan developers because off-plan development takes almost three years to complete.

He added that there is no shortage of land in areas such as Jumeirah Village Circle (JVC), Al Jadaf, Marjan, Sports City, etc., that can cater to the mid-market segment.

“But those mid-market segments cannot function well if there is not good connectivity. So when these areas have good connectivity through Metro, when rents increase, prices will also reflect it,” Syed said.

Demographic change

Avin Gidwani believes that the Blue Line will generate demographic changes resulting from better connectivity to affordable housing areas such as International City, Silicon Oasis and Dubai Academic City.

He said that by linking important parts of Dubai, this metro extension is likely to spur development in various sectors, boosting accessibility and facilitating growth in connected areas.

“Currently, access to student accommodation on the Academic City campus is relatively difficult and expensive. The subway connection will likely improve the campus experience for students, fostering a community more integrated with the city. It will also make this key educational environment more accessible to part-time students.

“These connected areas will become increasingly attractive to both residents and investors, and can be expected to lead to significant improvements in development and infrastructure,” said Gidwani, who runs the largest intelligence database company in projects in the Middle East and Africa.

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