How Does the Metro Affect Rental Prices in Dubai?

Proximity to metro stations: analyzing prices and demand factors

The metro is a crucial factor when choosing a property. Proximity to a station can increase rental prices by up to 30%. For instance, in the Al Furjan area, a rapidly developing residential hub, tenants are willing to pay a premium for being close to a metro station. However, this is not the case for all locations. In iconic areas like Dubai Marina, the metro station is not a defining factor in rental prices, while in Downtown, the difference is about 6%. This is partly because these areas are attractions in themselves, with other selling points that determine rental value: landmarks, road connections, established infrastructure, and more.

The Dubai Metro is expected to undergo significant expansion: The Emirate's Roads and Transport Authority has invited contractors to express interest in building a new line.

The upcoming “Blue” line is expected to have 14 stations, both above and below ground. It will connect with the existing “Green” and “Red” lines and will span 30 km in length.

Occupancy rates for properties near metro stations, depending on the area, tend to be more predictable and stable. Another advantage to keep in mind is the increase in property value. Analytics show that the capitalization of properties near transport hubs grows faster than that of real estate located further away from public transport nodes.

Dubai Metro Development Plan 2040

Dubai has unveiled a development plan for areas surrounding the metro, which includes significant expansion of the network and infrastructure. By 2040, the number of metro stations will more than double, reaching 140, and the areas around the stations will see active development. These measures aim to expand economic opportunities, integrate various modes of public transport, and enhance the efficiency of sustainable transport solutions.

In the coming years, the metro network is planned to expand from 64 stations covering an area of 84 sq. km to 96 stations covering 140 sq. km by 2030.

By 2040, the metro will include 140 stations across 228 sq. km, significantly improving accessibility and convenience of urban transport.

This plan is part of Dubai's strategy to improve public transport, support sustainable development, and enhance the quality of life for city residents. It was approved at a recent meeting of the Dubai Executive Council. The plan also includes incentives for developers to actively utilize areas around metro stations, supporting the concept of the “20-minute city.”

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