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14.10.2014
As with the success of the Dubai Metro, properties situated around the tram could benefit greatly, altering the dynamics of the real estate sector. Dubai soon plans to join the league of cosmopolitan cities such as New York, Toronto, London and Hong Kong by introducing trams. According to property agency Chestertons, this could mean big things for the real estate sector.
"Infrastructure enhancement and the growth in the public transport network will definitely have an impact on the real estate sector. The proximity to high-capacity transit halts has proven to increase property rates, a phenomenon known as the 'transit premium'. This has been true in the case of Jumeirah Lake Towers, which is in the limelight and a much sought after destination after getting connected with the Dubai Metro network. The areas which have relatively poor transport links currently with lower property value could see a hike in property growth as the tramways pass through them - making these buildings accessible to the tram stations. The tramway is definitely going to add significant value as it is potentially poised to change the dynamics of the property prices by making it more attractive. The price hike would be primarily more pronounced in areas with easy access to the tramway," said Simon Gray,managing firector, Chestertons MENA.
The tramway will provide a huge relief and will be an alternate mode of transport for visitors to the Jumeirah Beach Residence and Marina area who usually rely on taxis for commuting purposes; usually making traffic snarls a common daily routine in the area.
"Transit premiums ranged from a few percent to over a 150% increase in property values. The increases in property values near transit were most dramatic for office and retail spaces. The price swings for property located near and around the tramway will be triggered by the new infrastructure as per general consensus, but the facts would emerge once the phase one of the network opens in November. Businesses will also stand to benefit as the tramway will increase the volume of people travelling into JBR apart from tapping the vast tourism potential of the area," added Robin Teh, country manager, Chestertons Mena.
"Infrastructure enhancement and the growth in the public transport network will definitely have an impact on the real estate sector. The proximity to high-capacity transit halts has proven to increase property rates, a phenomenon known as the 'transit premium'. This has been true in the case of Jumeirah Lake Towers, which is in the limelight and a much sought after destination after getting connected with the Dubai Metro network. The areas which have relatively poor transport links currently with lower property value could see a hike in property growth as the tramways pass through them - making these buildings accessible to the tram stations. The tramway is definitely going to add significant value as it is potentially poised to change the dynamics of the property prices by making it more attractive. The price hike would be primarily more pronounced in areas with easy access to the tramway," said Simon Gray,managing firector, Chestertons MENA.
The tramway will provide a huge relief and will be an alternate mode of transport for visitors to the Jumeirah Beach Residence and Marina area who usually rely on taxis for commuting purposes; usually making traffic snarls a common daily routine in the area.
"Transit premiums ranged from a few percent to over a 150% increase in property values. The increases in property values near transit were most dramatic for office and retail spaces. The price swings for property located near and around the tramway will be triggered by the new infrastructure as per general consensus, but the facts would emerge once the phase one of the network opens in November. Businesses will also stand to benefit as the tramway will increase the volume of people travelling into JBR apart from tapping the vast tourism potential of the area," added Robin Teh, country manager, Chestertons Mena.
