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Residential properties across Dubai within 15 minutes of metro stations are outperforming the wider property market in terms of house prices and rents, according to global real estate consultant CBRE.
From the performance of the sales market, from the first quarter of 2010 to the fourth quarter of 2022, the average price of properties within a 15-minute walk from the Dubai Red Line subway station rose by 26.7%, exceeding the average increase of 24.1% in Dubai, according to CB Richard Ellis. in its 2023 Dubai Metro report.
The report explores the impact of the Dubai Metro on residential prices and rents. More specifically, it seeks to determine whether residential units within a 15-minute walk of a Red Line station can achieve a price and rent premium or outperform, or both.
As part of his methodology, the real estate expert analyzed the development of average prices and rents per square foot in more than 300 residential or mixed-use properties since the opening of the Dubai Metro in 2009.
It added that the highest price increases were for properties in the 10- to 15-minute walking distance category, which saw an average price increase of 43.8 per cent.
Looking at the rental market, CBRE found that average rents for properties within 15 minutes of Dubai’s Red Line Metro stations increased by 5.7% between the first quarter of 2018 and the fourth quarter of 2022.
Average rents in Dubai fell by 4.1% during this period. Properties in the 10- to 15-minute walking distance category also saw the highest rental growth rates, with rents rising an average of 11.7 per cent, it added.
“Our research shows that developments within 15 minutes of a metro station can significantly outperform the wider market in terms of rents and prices,” said Taimur Khan, director of Mena research at CBRE Dubai.
“However, as Dubai matures, this proximity is increasingly part of the fundamentals driving this outperformance,” he noted.
“Going forward, developers will have to increasingly focus on providing the right urban infrastructure around their developments, including but not limited to walk-, scooter- and bike-friendly neighborhoods and mixed-use and non-concentric developments to help achieve a similar level of performance,” Khan noted.
He added: “We can already see this fundamental change taking place, with early evidence that developments with such favorable urban infrastructure and proximity to the metro are already clearly outperforming other projects in terms of price and rent.”trade arab news agency
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