Properties located within 1.5km of Red and Green Line stations have risen in value by 13-41%, Roads and Transport Authority says
The Dubai Metro has caused a rise in the value of properties located within 1.5km of stations by as much as 13-41%, according to the Roads and Transport Authority (RTA) chairman Mattar Al Tayer.
Linking properties with public transport systems eases the mobility of residents, reduces the cost of journeys to and from these areas, and hikes the market value of property units, Al Tayer said.
“The cost of a journey from properties benefiting from the link with mass transit systems has dropped by as much as 300%,” he noted.
While the increase in property value is to be expected, it’s difficult to pinpoint it as just being due to the availability of public transport infrastructure, said Matthew Green, the head of research and consultancy for the UAE at CBRE Middle East.
However, it is natural that areas closer to metro stations would see higher rental or sale prices, he told MEConstructionNews.com.
“Anywhere that has good-quality transport infrastructure is always going to have a premium over areas that don’t. It wouldn’t be an unexpected outcome for us to see,” Green said.
Although the RTA says properties located close to both the Red and Green lines have risen in value, Green points out that residential units closer to Green Line metro stations would benefit more, on account of the higher population density in those areas. The neighbourhoods that the Green Line runs through include Deira, Bur Dubai and Oud Metha.
“That is actually where the greater value is,” he said, adding that the effects of the metro on property values would be “probably less intense” for the more linear Red Line system running along much of Sheikh Zayed Road.
Green expects the trend to continue once the Dubai Metro is extended to cover areas like Discovery Gardens, Furjan, Dubai Investment Park and the Expo 2020 site.