A planned expansion of Dubai’s Red Line metro from the Nakheel Harbour station to the Expo 2020 site is expected to push up property prices in its proximity, even before the route is operational.
Properties close to the new metro stations are set to see sales price increases of 10 to 15 per cent, according to consulting firm Valustrat
“Properties within a 10 minute walking distance of some of the proposed new metro stops may prove of stronger interest even in the short term as purchasers seek to identify investment areas for possible future gains,” the firm said in a statement.
“Upon commencement of train services sales values could potentially have increased by a premium of 10-15 per cent compared to other parts of the community located further from the station.”
Although not immediately, rents in other areas might rise at a later stage when the extended line is operational, the firm said.
Earlier this week, Sheikh Mohammed gave the nod to begin the construction of the extension of the Red Line.
Dubbed the ‘Masar 2020 project’, the extension will add 15 kilometres of track and seven stations to the line, connecting areas including the Gardens, Discovery Gardens, Furjan, Jumeirah Golf Estate, and Dubai Investment Park.
Around 11km of the expansion will run on elevated platforms while the remaining four kilometres will be constructed underground.
Dubai developer Nakheel said on Monday that the new extension will be a major boost to its retail and residential neighbourhoods in the vicinity.
Nakheel owns the Gardens, Discovery Gardens and Al Furjan communities in the area. It also operates Ibn Battuta Mall and various other community malls in the vicinity.
Dubai’s house prices have been softening owing to a large supply of units coming to the market. The cool down follows a period of rapid growth between 2013 and 2014 where property prices surged by more than 50 per cent.