Khaleej Times, Sun, Nov 26, 2023 | Jumada Al-Uola 12, 1445
Dubai Metro Blue Line: How property prices, rentals will increase along route
Emirates:
Rents and property prices in Dubai’s key areas such as International City,
Silicon Oasis, Ras Al Khor, Mirdif, Al Warqa and others will see double-digit
increases that will be connected through Dubai Metro’s upcoming Blue Line.
Upon the new line becoming operational in 2029, around one million individuals
living in the areas covered will directly benefit from the project.
On Friday, the Dubai Metro extension was announced which will span over 30 km,
connecting nine key neighbourhoods including Mirdif, Al Warqa, International
City 1 and 2, Dubai Silicon Oasis, Academic City, Ras Al Khor Industrial Area,
Dubai Creek Harbour and Dubai Festival City.
Real estate industry experts suggest that people will increasingly start
relocating to these areas of prefer these places that will connect to Blue Line
in the coming years.
Ayman Youssef, managing director, Coldwell Banker, foresees a considerable
increase in desirability for the locations connected to the Blue Line as the
metro line will reduce both time and expenses for commuters travelling to and
from those areas.
“The estimated
surge in rents and prices could range between 10 and 25 per cent. If the
current trend remains unchanged we can project a higher increase in Dubai
Creek Harbour as the market is focused on quality and integrated
communities. Dubai Silicon Oasis comes next as a very well-priced area for
the middle class,” said Youssef.
Farooq Syed, CEO
of Springfield Properties, also sees an increase between 10 to 15 per cent in
certain areas that will be connected to Blue Line.
“There is a huge demand in Dubai Marina and JLT due to Metro connectivity and
that’s why we see much higher rents even in older buildings. Areas like
International City which saw a slight dip in demand due to a lack of public
transport, we are now going to see a big increase in rents and prices in areas
International City, Al Warqa, Al Jadaf, Ras Al Khor and Silicon Oasis,” he said.
Citing an example, he said areas such as Karama and Bur Dubai still see high
demand due to metro connectivity as people travel from these areas to Business
Bay, Media City and Internet City for work with ease.
Outperforming other areas
Farooq Syed said Blue Line will also help achieve the 5.8 million population
target under the 2040 plan as the city needs affordable places to stay. “If we
see prices where metro touches, they have increased a lot and they’re becoming
unaffordable. And Dubai to remain an attractive city for quality talent, there
is a need to have good quality affordable housing and good connectivity.”
Wael Makarem, senior market strategist for Mena at Exness, said historically,
areas within reasonable walking distance from metro stations have outperformed
other areas and have recorded a more rapid pace in price and rent increases.
“From Q1 2010 to Q4 2022, average residential prices in Dubai have increased by
24.1 per cent per year while those within a 15-minute walking distance from a
metro station rose on average by 26.7 per cent with peaks of 43.8 per cent in
certain areas, a performance that could be replicated along the Blue Line. These
areas also tend to see more resilient price levels during downturns,” said
Makarem.
Densely populated areas
Makarem added that the new metro line could have the most obvious impact on
prices and rents in more densely populated or less expensive areas as the
infrastructure will make them more accessible for a larger span of inhabitants
who might need public transport services.
“At the same time, prices and rents could rise faster proportionately to the
proximity to actual metro stations in all the areas where the new metro line
will be built as walking distance could remain an important metric. Areas with
less supply of residential and commercial units could also see higher increases.
Prices in International City have been rising faster than in other areas like
Silicon Oasis and Mirdif with a month-over-month average increase of 0.98 per
cent compared to 0.55 per cent and 0.67 per cent, respectively, over the past 6
months, a performance that could be accelerated by the arrival of the metro
line,” said Makaram.