Renters in Dubai are prepared to pay up to 20 per cent extra for a property near a station on the city’s Metro network, according to a major UAE property firm.
Close proximity to a Dubai Metro station is now becoming a priority for many tenants, who are prepared to pay more for the privilege, said Asteco, the largest property services company in the UAE – and the premium demanded of those looking to live close to the Metro is set to increase.
The Dubai Metro has added a whole new market dynamic and as the network is rolled out across the Emirate, the rental disparity will become even more pronounced than it is already, said Asteco chief executive Elaine Jones.
In a new research note the company gives the example of a two-bedroom apartment within walking distance of the Mall of the Emirates metro station. According to Asteco, such properties will typically lease for between Dhs60,000 and Dhs65,000 per annum whereas similar dwellings just a couple of kilometres away go for Dhs50,000 to Dhs55,000.
The firm has detected similar trends close to stations serving DIFC and Deira.
As the Metro’s Green Line prepares to open on September 9 adding a further 18 stations and 23 kilometres to the network it will link some of the emirate’s busiest Creekside tourist areas, crowded residential areas, business districts and ministry offices.
Property prices are no longer based on its geographical location alone, Asteco notes, adding that a property in Bur Dubai or Deira with immediate access to a metro station would have a similar pricetag to more upmarket locations such as Jumeirah Lake Towers or Business Bay.
The grand opening next month could sharply increase the price of properties close to the new Green Line stations.
Asteco noted that such price hikes usually do not occur until after the stations physically open, not when the line is announced or under construction. Keeping abreast of the latest plans for the emirate’s mass transit infrastructure would give savvy investors and tenants an opportunity to keep one step ahead of the market, Asteco’s Jones added.