Dubai Metro helps boost property value by 34%


By Staff

DUBAI – The Roads and Transport Authority, or RTA, stated that the Dubai Metro project, since operated in 2009, has had a positive contribution to the appreciation of the value of lands and commercial properties in the vicinity of the metro stations as well as areas linked by the feeder bus service by as much as 7 to 34 per cent.

Dubai Metro
Dubai Metro

Abdul Mohsin Younes,  CEO of RTA Strategy and Corporate Governance Sector said: “The RTA Strategic Planning Department  studied the impact of the metro stations on the surrounding lands  and  properties in coordination with the Dubai Real Estate Regulatory Agency, or RERA, which provided the data about the rates of lands  and properties in  areas close or far from the metro stations.”

The study revealed that the  value of lands  and properties adjacent to the metro stations has soared  since the operation of the metro and reached in some cases up to 34 per cent as a  result of the high demand for buying lands  and renting properties in close  proximity to the metro stations.

This  is attributed to the ease of  mobility, and the provision of multi transit options at lower costs of  transit aboard the Dubai Metro, which is characterised by absolute minimal  fares and high efficiency across the city, particularly for those  inhabiting near the metro stations.

“This explains the huge impact of the  transit network on the economy of the emirate, and reflects the importance  of the metro in pushing up the economic development drive in the field of  property development, and stimulating the tourist and commercial movement in  various parts of the Dubai. The study monitored the changes in rates of these lands and commercial  properties in 2011 compared to the rates prevailing in 2009 before the  opening of the metro; which illustrate the importance of the Metro in  boosting the market value of lands  and properties, particularly in the  surrounds of the metro stations.

“A comparative study with the experiments of countries which have made  advanced progresses in mass transit systems, particularly the metro, such  as the UK, Germany, Japan, Hong Kong, and the USA, revealed that public  transit means in general have a positive impact on appreciating the value  and rents of properties, and that such rates made remarkable hikes ranging  from 3 to 50 per cent,” added Younes.

“In less than 3 years, the Dubai Metro has generated high economic returns  highlighted by its ability of enhancing the competitiveness of the emirate  as regards the attraction of commercial activities as well as the local  and  international events spanning conferences, sports events, and cycling  races. Moreover, it contributed to augmenting the revenues of the Emirate  generated by advertising activities, naming of stations and leasing of  commercial outlets,” concluded Younes.  More info