Dubai - Announcement of the extension to the existing Dubai Metro's Red line from Nakheel Harbour station towards the Expo 2020 site and Dubai World Central may have a positive impact on real estate values in the area even before the first train starts.
ValuStrat explain that the route recognises the mass transit demands of 240,000 residents with new stations planned in Discovery Gardens, Al Furjan, Jumeirah Golf Estates, Dubai Investment Park and the Expo 2020 site.
This transport initiative comes just five months after inauguration of the first phase of the Dubai Tram network, having eleven stops, linking with existing Dubai Metro stations in Dubai Marina and Jumeirah Lake Towers.
'...Properties within a 10 minute walking distance of some of the proposed new metro stops may prove of stronger interest even in the short term - As purchasers seek to identify investment areas for possible future gains. Upon commencement of train services sales values could potentially have increased by a premium of 10-15% compared to other parts of the community located further from the stations...' ValuStrat's Research team explains. They add that rental prices of properties near to the metro extension are also likely to rise, albeit at a later stage - As tenants generally only pay higher rents once a new rail service is operational.
As demonstrated by five years of successful operation, Dubai Metro passenger numbers have increased to almost half a million passengers a day, this has had an impact in reducing traffic congestion and pollution. Locations as far as Al Furjan and Green Community will soon benefit from mass transit to all key locations in Dubai within a fraction of the time and travel cost, extending low-mid income people's ability to commute to more distant locations for work and enjoying Dubai's amenities and its social life.
-Ends-
About ValuStrat
ValuStrat is the Middle East's leading provider of Strategic Advisory, Valuation and Asset Divestment services, working across a diverse and extensive range of industry sectors. ValuStrat's goal is to provide its clients with very reliable information and sound advice so as to help them make effective business decisions.With experience of over 35 years and a client base of over 750 corporations, it is well-positioned to provide intelligent and value added advice to a wide variety of clients. ValuStrat's clients are diverse, from governments, multi-nationals, large local corporations and financial institutions to start-ups, SMEs and family businesses.
For more information please visit: www.valustrat.com
For further information on the press activities, please contact:
Shenoy
ekadaaPR
Dubai, U.A.E.
T : ++ 971 4 391 2100
F : ++ 971 4 390 4740
Email : shenoy@ekadaa.com
© Press Release 2015
