Dubai Tram could boost nearby property prices
Jumeirah Beach Residence and Dubai Marina set to benefit
Dubai’s new tram could add significant value to properties in the vicinity of the new mode of transport, according to property agency Chestersons.
The Dubai Tram is due to open on 11 November this year and consists of a 10.6km-long track starting from the Dubai Marina and stretching up to the Tram Depot near Dubai Police Academy.
The tram is expected to transport about 27,000 passengers per day at the start of operations, increasing to 66,000 per day by 2020.
“The proximity to high-capacity transit halts has proven to increase property rates, a phenomenon known as the ‘transit premium’. This has been true in the case of Jumeirah Lake Towers, which is in the limelight and a much sought after destination after getting connected with the Dubai Metro network," said Simon Gray, managing director, Chestertons MENA.
He said the tramway is potentially poised to change the dynamics of property prices, particularly in Jumeirah Beach Residence and Dubai Marina areas, where residents rely heavily on taxis for commuting purposes.
Robin Teh, country manager, Chestertons MENA, said the ‘transit premium’ has historically seen property prices increase by up to 150% in some areas.
“The increases in property values near transit were most dramatic for office and retail spaces,” said Teh.
“The price swings for property located near and around the tramway will be triggered by the new infrastructure as per general consensus, but the facts would emerge once the phase one of the network opens in November,” he added.
He said businesses will also benefit as a result of increased volume of people travelling to JBR and Marina.
The tram network will feature 17 passenger stations and a fleet of 11 trams in the initial phase. A further fourteen trams will be added in Phase 2.
Each tram has seven coaches, including a gold suite and one cabin dedicated to women and children. It will be operated by Serco, the same company that manages the Dubai Metro.