It serves areas with a high population density exceeding 270 thousand people
Real estate developers: 20% expected rise in real estate prices on the "Metro 2020 route"
"Path 2020" will reach its operational capacity within a specified period of time.
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Real estate developers expect prices on both sides of the "Dubai Metro 2020" route to rise by between 10 and 20% during the coming period.
They attributed this to the constant and large demand for these real estate permanently, and at all times, in addition to the fact that the "Path of 2020" will serve areas with a high population density estimated at more than 270 thousand people, which increases the attractiveness of investment in these areas.
Positive effect
In detail, the CEO of "Harbor Real Estate", Muhannad Al-Wadi, said that "(Path 2020) will have a positive impact on the real estate market," indicating that the demand will increase significantly on real estate in this region, especially commercial real estate, expecting higher prices for For these areas, a rate of between 10 and 20%
For his part, the CEO of Binghatti Real Estate Development, Mohamed Bin Ghatti, said: “There is a general rule (wherever the metro is, it adds to the value of real estate), and thus its price increases, but these happen mostly in the long run, not quickly.
For example, the phenomena that occurred in cities such as London, when a train line was established in them, the real estate prices did not rise immediately, but after years passed, some real estate became very valuable, due to its presence near certain stations of the trains.
He added that the "path of 2020" is a basic infrastructure line that will reach its operational capacity within a specific period of time, and there is no doubt that it will raise the value of real estate close to its path, and it is expected to rise by between 5% in the short term, and will reach 15% in the long term.
High demand
For his part, the general manager of the "Royal Liwan" Real Estate Company, Muhammad Hareb Al-Falah, said: "Properties on both sides of the metro are often affected, in conjunction with the high demand for residential units and shops in the new areas through which the metro line passes, and whose stations were opened recently." .
He added, "The pricing of these properties will be relatively higher than other properties of similar classification, and likewise the rents."
In turn, the CEO of Standard Real Estate Management, Abdul Karim Al-Mulla, said, “Undoubtedly, there will be a positive impact, because the new metro lines will serve thousands of residents of these areas.
Transportation lines are one of the infrastructure elements most attractive to investors, especially the real estate investor.
Road networks
In the same context, the CEO of "Azizi Real Estate Development", Farhad Azizi, said: “The characteristics of connectivity and the efficiency of road and transportation networks, including public transport, are among the main pillars on which the growth and prosperity of any city depends.
The Dubai Metro line, which was inaugurated on September 9, 2009, is part of this trend, as it is the latest change in the public horizon and ease of access to various locations in the city.
Moreover, the new line (Route 2020) will have a positive impact on the projects and their prices, and the demand for land and real estate in the surrounding areas.
He added: “The new (Route 2020) passes through compounds that were classified as secondary sites compared to other distinct options in Dubai.
As the market demand has become directed towards end-users and long-term housing at affordable prices, especially with the shift of many from rent to ownership, and the growth achieved by the Emirate of Dubai, these areas are gaining popularity due to the increase in accessibility opportunities, which will positively affect the performance of the assets within them. .
Therefore, we are witnessing a strong increase in demand for housing close to the new path, and this will be reflected in the rise in real estate values. ”
Azizi stressed that the areas covered by the "Route 2020" have become, of course, more appropriate than before, and rental returns are constantly increasing.
Coronavirus
For his part, Chairman of the Board of Directors of "Sahab Real Estate", Abdulaziz bin Hoyden, said, "The year 2020 imposed many challenges due to the Corona pandemic, and subjected the economic sectors, and the real estate sector in particular, to difficult tests, while this vital sector showed great flexibility and ability to confront Crises.
With the start of a new year, the real estate market is expected to recover again due to many factors, including the opening of the new metro line (Route 2020), which serves areas with high population density, estimated at more than 270 thousand people, and includes areas: Gardens, Discovery Gardens, Al Furjan, And the properties of Jumeirah Golf and the Dubai Investment Park, as well as the site of (Expo 2020 Dubai) ».
“The opening of the new metro track will positively affect the demand for residential and commercial properties on both sides of the metro line, whether in terms of purchase or lease,” said Bin Hoyden.
These areas will witness an increase in demand and a relatively increase in sales prices and rental values, as housing near the metro is a great advantage for ease of movement and low cost, and avoiding traffic congestion in the usual means of transport.
The surveys show that the metro is the preferred mode of transportation for individuals in Dubai, which drives investors to buy to benefit from the increased demand for rent in these areas.
And Ben Hoyden expected that real estate prices, on both sides of the new path, will not increase to reasonable limits, but that there will be a relative increase in prices in those areas before the opening.
Dubai Metro
For his part, Chairman of the Board of Directors of "W Capital Real Estate Brokerage", Walid Al-Zarouni, expected that the areas on both sides of the new line of the Dubai Metro (Route 2020) will witness an increased demand for real estate compared to other areas within the emirate.
Al-Zarouni said, “This category of real estate is characterized by sustainable growth, because there is a continuous and large demand for it, and usually real estate that is close to metro lines has a price increase of 15 to 20%, and this is of course in all countries of the world, so I expect the same thing in Dubai, and prices will gradually rise. With the increase in demand for housing units close to (Path 2020) ».
He stressed that it is normal for prices to vary before and after the operation of the (new route) and after its operation, adding that the availability of public transport is one of the conditions for adequate housing, especially among employees, as they are the most categories of tenants in Dubai, so the employee is interested in living in a place close to metro stations and means Transportation spread throughout the emirate, in order to facilitate his transportation from work to home and back.
Transportation lines
Raad Ramadan, General Manager of Awad Gargash Real Estate Company, said that “the country's development is linked to transportation lines, and that the geographical distribution of stations affects the pricing map of real estate and the associated rents.” He expected that rents in areas close to (Route 2020) would increase by 15 percent. %.
New stations
The real estate developer, Chairman of the Board of Directors of Al-Waleed Investment Company, Muhammad Al-Mutawa, said that the new stations will be the beginning of a tangible movement in these areas, both selling and renting, pointing out that, always, real estate near the metro will achieve an increase in sales and rental prices.
Real estate pricing will be relatively higher than other similarly rated units.
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