Discovery Gardens, Dubai Investment Park and Jumeirah Golf Estates were the three most popular areas to rent near the new Dubai Metro extension, according to a study by Dubizzle.
A 15-kilometre, five-stage extension of the Dubai Metro Red Line, called Route 2020, is scheduled for completion before the World Expo kicks off in October.
The study found that one-bedroom apartments in these three communities were preferred over two-bedroom apartments.
In Discovery Gardens, the community closest to Route 2020, rents for one-bedroom units dropped by 8 percent in 2019 and softened further in February 2020, averaging 46,000 UAE dirhams, according to the study.
The average annual rent for two-bedroom apartments softened by 5 percent in 2019, with the prices now at an average of 76,000 UAE dirhams.
In Dubai Investment Park, the second most popular area, the study found that prices for one and two-bedroom apartments softened by 18 percent and 14 percent respectively through 2019. Rents for one-bedroom apartments are currently at an average of 43,000 UAE dirhams, and two-bedroom apartments stand at 60,000 dirhams
Rents for one and two-bedroom apartments in the Jumeirah Golf Estates, a luxury residential golf community located close to the Expo site and Al Maktoum International Airport, dropped by 5 percent and 11 percent, respectively, through 2019, averaging 52,000 dirhams for one-bedroom and 80,000 dirhams for two-bedroom units.
“The price trends for the three areas that we’ve explored are not surprising, as they are in line with the overall market trends. However, as the new Route 2020 metro line nears completion, we can assume that these areas will become more popular among UAE residents, given the ease of accessibility,” said Matthew Gregory, Director at Dubizzle Property.
“Those who have moved into these communities over the last year have had a first mover’s advantage, as once the metro line is fully functional, naturally the rents in these communities will rise in line with demand,” Gregory added.
(Reporting by Gerard Aoun; Editing by Anoop Menon)
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