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Metro & Real estate prices
This was published in Gulf News ... Hope IC gets a Metro line and the property price has a boost
Metro fires up property prices
By Robert Ditcham, Staff Reporter
Published: June 24, 2007, 23:30
Dubai: Demand for real estate near Dubai Metro stations is heating up in response to the rapid physical emergence of the RTA's Dh15.5 billion project, say property consultants and agencies.
Companies and residents on the hunt for real estate are increasingly prioritising locations near metro stations and are willing to pay a premium to avoid congested roads and tolls.
Meanwhile, landlords and real estate developers are responding by heavily marketing links between their properties and the first phase of the metro, which will follow a route along Shaikh Zayed Road and is scheduled to open in September 2009. The second phase will be built mostly underground and should open in March 2010.
The trend means Dubai's future property hot spots will be dictated by proximity to the metro, says Craig Johnson, general manager at real estate consultancy Landmark Properties.
"We have witnessed a huge surge in interest from prospective investors regarding the metro. Proximity to a metro stop has become a leading strategy for investors looking to maximise appreciation on their investments," he said, without specifying expected appreciation rates.
"Significantly, a number of reputable investment funds who are considered particularly astute in the market are targeting property located close to metro stations."
Peter Penhall, CEO of Dubai-based realty portal Gowealthy, said it is hard to estimate appreciation levels or premiums for property near stations, but said it will have a greater chance of holding its value should the market dip.
Recent trend
The seeds for the project were sown 10 years ago when a feasibility study concluded that Dubai could no longer rely on road networks to cater to escalating traffic.
But investor interest in land near the metro has only recently picked up in response to the physical emergence of train lines and station locations, said Ryan Mahoney, managing director at Dubai-based real estate agency Better Homes. "People are realising that the metro is not just a pipedream. Construction work is happening quicker than they had anticipated."
He said prices should appreciate for non-luxury property within walking distance of stations, but said it is unlikely that Dubai's future demographics will change as the project is being built along existing road arteries.
The majority of investor interest so far has been for commercial real estate, he added. "Business owners are thinking about how their mid-level staff will be able to commute to the office, especially as congestion and tolls are considered barriers to road use."
Retail real estate in and around stations will also be attractive to investors because of the guaranteed high shopper footfall that a metro station can provide, said Penhall.
It remains uncertain how close a property must be to a station to command a premium. In cities with moderate climates the distance is up to 400 metres, but in Dubai it will be nearer 100 metres, said Mahoney.
This was published in Gulf News ... Hope IC gets a Metro line and the property price has a boost
Metro fires up property prices
By Robert Ditcham, Staff Reporter
Published: June 24, 2007, 23:30
Dubai: Demand for real estate near Dubai Metro stations is heating up in response to the rapid physical emergence of the RTA's Dh15.5 billion project, say property consultants and agencies.
Companies and residents on the hunt for real estate are increasingly prioritising locations near metro stations and are willing to pay a premium to avoid congested roads and tolls.
Meanwhile, landlords and real estate developers are responding by heavily marketing links between their properties and the first phase of the metro, which will follow a route along Shaikh Zayed Road and is scheduled to open in September 2009. The second phase will be built mostly underground and should open in March 2010.
The trend means Dubai's future property hot spots will be dictated by proximity to the metro, says Craig Johnson, general manager at real estate consultancy Landmark Properties.
"We have witnessed a huge surge in interest from prospective investors regarding the metro. Proximity to a metro stop has become a leading strategy for investors looking to maximise appreciation on their investments," he said, without specifying expected appreciation rates.
"Significantly, a number of reputable investment funds who are considered particularly astute in the market are targeting property located close to metro stations."
Peter Penhall, CEO of Dubai-based realty portal Gowealthy, said it is hard to estimate appreciation levels or premiums for property near stations, but said it will have a greater chance of holding its value should the market dip.
Recent trend
The seeds for the project were sown 10 years ago when a feasibility study concluded that Dubai could no longer rely on road networks to cater to escalating traffic.
But investor interest in land near the metro has only recently picked up in response to the physical emergence of train lines and station locations, said Ryan Mahoney, managing director at Dubai-based real estate agency Better Homes. "People are realising that the metro is not just a pipedream. Construction work is happening quicker than they had anticipated."
He said prices should appreciate for non-luxury property within walking distance of stations, but said it is unlikely that Dubai's future demographics will change as the project is being built along existing road arteries.
The majority of investor interest so far has been for commercial real estate, he added. "Business owners are thinking about how their mid-level staff will be able to commute to the office, especially as congestion and tolls are considered barriers to road use."
Retail real estate in and around stations will also be attractive to investors because of the guaranteed high shopper footfall that a metro station can provide, said Penhall.
It remains uncertain how close a property must be to a station to command a premium. In cities with moderate climates the distance is up to 400 metres, but in Dubai it will be nearer 100 metres, said Mahoney.
