Real estate rent prices around the connected areas of the Dubai Metro 2020 road will be more flexible than the broader market, according to real estate analysts and industry managers.
It is expected that the rates will rise within the medium term of the market by the supply of the market.
Dubai opened this month Route 2020, a 15-kilometer stretch to the Red Line Metro Dubai, linking Jebel Ali, Descphrey Gardens, the Festival, the Jumeirah Golf Estate, the Dubai Investment Complex, and the Expo 2020 site. Route 2020 will have seven stations and will serve communities of 270,000 people.
Historically, areas of up to a 15-minute walk to a metro station tend to outpace the wider market, says Timur Khan, director of research at Knight Frank. “We have seen that if you have developed within five minutes of Dubai metro station, the market has increased by 51 percent between 2010 and 2018, and if they are within 10 minutes, they have increased by 58 percent and 33 percent for a distance of 15 Accurate “. He pointed out that these five areas will see a very large demand.
Firas Al-Masddi, CEO of Fäm real estate, doesn’t expect real estate prices to rise within the 2020s within the short term, but the percentage will increase.
“The areas around the 2020 metro are going to be more suitable than ever. Owners are looking to have it. I do not see any increase in rent and costs because the fundamentals don’t show any sign of a short-term lease or price rise, which is sweet because Dubai will become more cost-effective than ever and can attract tenants from across the UAE in addition.” Al-Msaddi.
and he added that ” the long to medium term, The Metro 2020 will certainly help increase rents and prices. The rates of rent, as well as the sales prices, are highly correlated worldwide, especially in Dubai. If the rents fall, the sales prices tend to follow up because of the rate of effect of the one rents generated from the lease.”
The rents near the metro areas surpassed the broader market, Khan said. Rents in the broader market fell 11 percent from the first quarter of 2014 to the same period in 2018, while within five to 15 minutes of the Metro sites, rents increased by 1.8 percent over the same period.
“The areas around the metro stations tend to keep prices better. Since 2014, the highest year in the market, the broader rental market has fallen 11 percent while construction has risen within 15 minutes of Metro station leases by 1.8 or 2 percent. Khan added “.
“I don’t think that rents will rise on this road around the 2020 metro areas but it will be more flexible because of the pressure on the market at this time as much supply arrives. Rents fall 10 percent, not long ago. These 2020-related societies are in their early stages and it takes time for society to build them.”