By Shuchita Kapur www.business24-7.ae
Properties along the Metro lines have seen their prices increase marginally.
Dubai Metro, which will be officially inaugurated on September 9, is expected to play a decisive role in property choice of many prospective homebuyers.
“Currently, an average premium of five per cent is commanded by properties closer to Metro stations,” said Vineet Kumar, Head of Sales at Asteco Property Management in Dubai. “The Metro line is a huge attraction to certain communities like Jumeirah Lakes Tower and Dubai Marina. We have already witnessed that developments located in close proximity to the stations attract more buyers. Hence, these properties are more marketable,” he told Emirates Business.
Porush Jhunjhunwala, Manager, Commercial Leasing at Better Homes, agrees about the increase in demand for properties along the Metro. “We have seen increased demand for properties along the Metro line but there is no appreciation as of now. We have to wait and watch until the first quarter of 2010 to get the real picture,” he said.
According to experts, commuters’ positive responses after trying the new Metro will help fan buyer interest and thus the prices. Paul Sharland, Sales Development Director at Dubai Luxury Homes, believes the prices of properties along the Metro line have not appreciated at this point of time.
“I think it is a bit too soon. I think most people want to wait until it’s up and running and then judge how important/ valuable it is. It is more a case of telling potential buyers that a particular development or building is near to a station.
“For example, in Executive Towers, Tower M is nearest to the Business Bay station. This has become a unique selling point. At the moment this hasn’t driven prices up in Tower M but it has made it more desirable to a potential buyer,” he added.
Going forward, these properties will definitely command a premium as compared to properties, which do not have Metro connectivity.
“Of course, these properties will command a premium but to what extent depends upon the demand and supply of commercial space in the region,” said Jhunjhunwala while talking of commercial spaces.
“If the Metro is a success, then of course properties near to a station will fetch a premium, like in any other city. [However], I don’t know by how much [will the price increase],” added Sharland.
According to Sharland, parking can be an important issue. “My current concern for the Metro is parking, I know there are going to be shuttle buses but surely there should be Metro parking at some of the stations.”