Dubai home prices impacted by distance from metro's Red Line
Buildings closer to the Red Line have seen price hikes since Q1 2010, new research shows
New research from Knight Frank has revealed that prices tend to be higher for residential buildings that are at short distances from the Dubai Metro Red Line, a key facet of the emirate’s transport infrastructure.
According to its The Dubai Metro 2018 report, Knight Frank found that between Q1 2010 and Q1 2018, the average mainstream prices of Dubai’s residential buildings grew by 28%, with the prime market witnessing a price rise of 29% during the same period.
Moreover, residential prices for units located within a five-minute walk along the Dubai Metro Red Line have grown by 51%. Those within 10 minutes fared even better, growing by 58%, with others within 15 minutes seeing a 33% increase.
PROJECT FOCUS: Dubai Metro - Red Line
Using analysis of sales data, the report also found that, on average, as homes move further away from the metro, the price per square foot begins to increase and “achieves a premium over the average rate achieved in Dubai”.
However, the report added: “Whilst buildings in close vicinity to metro stations have seen superior price growth compared to the wider market, it is evident that other factors have a more material impact on the price per square foot, given that the achieved price [...] increases as you move further away from metro stations”.
Initially covering 10 stations, the first section of the Dubai Metro Red Line was inaugurated on 9 September 2009, followed 24 hours later with the general opening to the public.
Dubai’s Roads and Transport Authority has suspended service between Ibn Battuta and Tower and Jumeirah Lakes Towers (JLT) stations from 5 January 2018 to mid-2019 due to ongoing work for the Route 2020 metro line.