fbpx

Dubai residential units within 15-minute walk of metro outperform wider market

Average rents of properties close to metro stations has risen sharply, CBRE report finds

Residential properties in Dubai only a short walk from metro stations have outperformed the wider real estate market in the emirate, both in terms of sales price and rental performance, according to global consultancy CBRE.

Residential units within a 15-minute walk of the emirate’s transport network that began operations in 2009 have the potential to continue outshining the broader market, CBRE said, in itsDubai Metro Report 2023.

Average prices of residential units in Dubai, the commercial and tourism hub of the Middle East, increased by 24.1 per cent between the first quarter of 2010 and the fourth quarter of 2022.

Over the same period, residential units within a 15-minute walk of a metro station recorded an average rise of 26.7 per cent, according to the CBRE report.

There are, however, differences in performance across the different proximity categories, with units within zero-to-five and 10-to-15 minutes’ walking distance showing “marked levels of outperformance compared to the Dubai average”, with price growth rates of 35.8 per cent and 43.8 per cent, respectively, CBRE said.

Average prices for properties in the five-to-10-minute proximity category, however, increased by only 0.2 per cent, which the CBRE said was largely due to “lacklustre performance in price growth in secondary locations, which have tended to consist of affordable stock with limited amenities and urban infrastructure”.

However, residential communities within the five- to 10-minute distance from a metro station with modern amenities and quality urban infrastructure, such as Jumeirah Beach Residence and Dubai Marina, have bucked this trend and recorded price growth of 40.5 per cent and 35.9 per cent, respectively.

“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,” said Taimur Khan, head of researchat CBRE.

Apartments in Downtown Dubai that are within a 15-minute walk of a metro station recorded an average price increase of 47.4 per cent between the second quarter of 2010 and the fourth quarter of last year.

News Sources

Compare listings

Compare