No rental rate hike for homes near Metro
No rental rate hike for homes near Metro says real estate expert
Properties located near Dubai Metro stations have not seen the expected hike in rental rates that was initially anticipated when the new transport network opened in September last year, a Dubai-based real estate executive told Arabian Business.
“Since the metro came onboard it is fantastic but I expected the prices to be higher for the areas that the metro was but it doesn’t seem to have happened,” Leah James, a manager of residential sales and leasing at the Better Homes real estate agency, said earlier this year.
James said she had expected rental rates for properties near the metro stations to rise by at least AED10,000 ($2,722.87) a year but that they were only seeing small rises of an average of around $5,000 ($1,361.43) at most.
She added that she believes this is the case because most people who use the metro live in the outskirts of Dubai and white collar, Western expat workers are still opting to use their cars and are therefore not willing to pay higher rates to live near the stations.
“Prices next to the metro line are too high for people who use the metro,” she said.
However, she was confident that when all the metro stations are open it might have more of an impact, especially in Dubai Marina.