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Properties near Dubai metro stations witness rental growth: CBRE

DUBAI, April 18, 2023

Residential properties across Dubai which are within a 15-minute proximity to metro stations can outperform the wider real estate market both in terms of property price and rental performance, according to global real estate advisor CBRE.
 
Looking at the performance of the sales market, properties which were within a 15-minute walk of a Dubai Red Line metro station saw prices increase by 26.7% on average between Q1 2010 and Q4 2022, outpacing Dubai’s average increase of 24.1%, stated CBRE in its Dubai Metro Report 2023. 
 
The report explores the impact of the Dubai metro on residential prices and rents. More specifically, it looks to determine if residential units which are within a 15-minute walking distance to Red Line stations have been able to achieve price and rental premiums or outperformance, or both. 
 
As part of its methodology, the property expert had analysed the development of average prices and rents per sq ft for over 300 residential or mixed-use properties since the inauguration of the Dubai Metro in 2009. 
 
The highest rate of price growth was recorded by properties which fell into the 10 to 15-minute walking distance category, which saw prices increase by 43.8% on average, it added.
 
Looking at the rental market, CBRE found that average rental rates for properties within a 15-minute proximity of a Dubai Red Line metro station increased by 5.7% from Q1 2018 to Q4 2022. 
 
Over this period, Dubai’s average rental rates decreased by 4.1%. The highest rate of rental growth was also recorded by properties which fell into the 10 to 15-minute walking distance category, where rents increased by 11.7% on average, it added.
 
Taimur Khan, Head of Research for Mena at CBRE Dubai, said: "Our study shows that developments within a 15-minute proximity to metro stations can substantially outperform the wider market, both in rental and price terms."
 
"However, as Dubai has matured, this proximity is increasingly only a part of the fundamentals which drives this outperformance," he noted. 
 
"Going forward, developers will have to increasingly focus on the provision of suitable urban infrastructure around their development which will include, but not be limited to, walkable, scooter and cycle friendly neighbourhoods and mixed use and non-concentric developments to help achieve similar performance levels," noted Khan. 
 
"We can already see this change in fundamentals being played out, where early evidence suggests that developments which have such conducive urban infrastructure and boast proximity to the metro are already significantly outperforming both on price and rental terms," he added.-TradeArabia News Service



Tags: Dubai metro | properties | CBRE | stations | rental growth |

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