Dubai Metro Route 2020 to influence property price
by admin on August 26, 2020
dubai metro route 2020
Dubai’s 15 km Route 2020 was inaugurated on July 8th in the presence of UAE Prime Minister HH Sheikh Mohamed Bin Rashid Al Maktoum. The new route’s purpose is to encourage new housing and commercial developments. Its initial purpose was to serve the Expo 2020 site. Revenue services should arrive in September.
Dubai is in for a touch of modernity
The new stations come with new Design Languages with Added facilities. The stations have upgraded to AFC Gates( Automatic Fare Collection) and now provide users bus and taxi interchanges.
Dubai added a 15 km extension to Dubai Metro’s Red Line, connecting Jebel Ali, Discovery Gardens, Al Furjan, Jumeirah Golf Estate, Dubai Investment Park, and the Expo 2020 site. Route 2020 will have seven stations and will serve communities populated by 270,000 people. Thus, commute for residents and transportation for visitors is going to be much easier.
Infrastructure development dictates the desirability of an area
Infrastructure is a key indicator of development in a region. The emergence of the metro translates into a burgeoning of an area in the vicinity; which itself translates into increased value and is reflected in the prices of property. Naturally, providing modern, fast transportation to a region raises the prices of the development. A more connected development will ease the lives of those who have access to it. This in return, makes these areas appear more desirable for investors. So is the case with the new Dubai 2020 metro route.
Khaleej Times spoke to Taimur Khan from property consultancy company Knight Frank.
”Generally, areas up to 15 minutes of walk to a Metro station tend to outperform the wider market”, says Taimur Khan, research manager at Knight Frank. “We have seen that if you have a development in a five-minute distance of a Dubai Metro station, the market increased 51 percent between 2010 to 2018, and if they are in a 10-minute walk, they increased by 58 percent, and 33 percent for a 15-minute walk,” Khan said. “Locations near Metro stations tend to hold prices better. Since 2014, which is the top year of the market, the broader rental market went down 11 percent while building within 15 minutes walks of metro station rents increased by 1.8 or 2 percent. That is quite a difference,” added Khan.
Infrastructure and metro access influence the price of property
Knight Frank’s head of research doesn’t expect any significant growth in the housing price in the short term. But, in the long run, we will see a rise in prices on the market for rentals and for sales alike. Renting and selling rates are interrelated worldwide.
”Now it is good a time as any to invest”, says Maria L. Mitrea, Arabian Sunrise Properties founder. ”Delaying a decision to buy in the context of the corona-crisis, until a presumably better time in the future does not guarantee a better result. People will always need housing, it is simply a constant. So why not do it while prices have declined. Because, on medium to long term, the prices for properties in the vicinity of the Metro will inevitably increase”, Mitrea explains.
