Wednesday, July 2, 2014

Hefty rent rises up to 34% had been observed across communities near Dubai metro stations since its opening in year 2009. Affordability and convenience to commute with in the city efficiently dragged residents towards communities located near metro stations. Especially expat workers who are living and working in the city prefer living in areas that provide easy access to public transport. As this will allow them to save significant amount of money they will be spending on taxis and fuel. Despite being an important criterion for searching home, initially proximity to metro stations failed to increase the asset prices drastically due to global economic recession. However, relocation at substantial rates to communities near metro stations was observed among tenants looking for affordable accommodation.

Having observed the property price hikes and rises in property demand to date since opening of Metro in the city, experts forecasted further price rises with upcoming Metro extensions. After the successful bid to become the host of world event EXPO 2020, Roads and Transport Authority (RTA) has declared extending Red and Green lines to meet the needs of commuters. After being extended, Dubai Metro will have total 70 stations. It is the backbone of public transport system which allows travelers to enjoy state-of-the art facilities and comfort.

Proven contribution of Metro benefiting the real estate sector of Dubai reveals that transportation and connectivity is equally important for the success and progress of real estate projects. The Metro system is efficiently connecting communities in rapidly expanding city by providing a time saving alternative to busy highways. Not only residents but also the entrepreneurs started relocating from older buildings and secondary locations to prime locations providing better car parking and easy access to Metro stations. 

Rising apartment rents near Dubai Metro Stations

Native preferences to live near metro stations have greatly increased the Dubai apartment rents near Metro Stations. Jumeirah Lakes Tower indicated 26% increase and you can rent two bedroom apartments at 130,000 AED per annum. Rent rises are also observed for other prime locations in the city including Dubai Marina, Downtown, Business Bay, the Greens and Palm Jumeirah.  Now you can rent one and two bed room apartment in Downtown on 110,025 AED pa and 178,020 AED pa respectively.  On the other hand Dubai Marina offers one bedroom apartments at 95,000 AED. The Palm, another prestigious project supplies one and two bedroom apartment units at 140,011 AED pa and 185,000 AED respectively.  The Greens, an emerging community located near Dubai Internet City, Media City and Emirates Golf Club provides perfect accommodation for single and families. Two bedroom apartment can be rented at 150,0000 AED pa. All of these communities are located in close proximity with Metro stations.  Better Homes experts review about rent rises among famous communities have also revealed this fact that proximity to Metro station is one of the important reasons for rises in rents.

Experts have already predicted the expected future rent rise in communities that are going to be connected with Dubai Metro-Green or Red Line after their extension. These communities include Festival City, Ras Al Khor, International City, Silicon Oasis and Dubai Academic City going to be served by Green line whereas as Red line will connect neighbourhoods of Mirdiff, Jebel Ali to the Expo site near Al Maktoum International Airport. Stations are planned to align with existing residential communities in these areas.

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