Dubai Metro appreciates the value of lands and properties
The Roads & Transport Authority (RTA) stated that the Dubai Metro project, since operated in 2009, has had a positive contribution to the appreciation of the value of lands & commercial properties in the vicinity of the metro stations as well as areas linked by the feeder bus service by as much as 7 to 34%.
Commenting on the above, the CEO of RTA Strategy & Corporate Governance Sector Abdul Mohsin Younes said, “The RTA Strategic Planning Department studied the impact of the metro stations on the surrounding lands & properties in coordination with the Dubai Real Estate Regulatory Agency (RERA), which provided the data about the rates of lands & properties in areas close or far from the metro stations.
The study revealed that the value of lands & properties adjacent to the metro stations has soared since the operation of the metro and reached in some cases up to 34% as a result of the high demand for buying lands & renting properties in close proximity to the metro stations; which is attributed to the ease of mobility, and the provision of multi transit options at lower costs of transit aboard the Dubai Metro; which is characterized by absolute minimal fares and high efficiency across the city, particularly for those inhabiting near the metro stations. This explains the huge impact of the transit network on the economy of the Emirate, and reflects the importance of the metro in pushing up the economic development drive in the field of property development, and stimulating the tourist & commercial movement in various parts of the Dubai Emirate.
“The study monitored the changes in rates of these lands & commercial properties in 2011 compared to the rates prevailing in 2009 before the opening of the metro; which illustrate the importance of the Metro in boosting the market value of lands & properties, particularly in the surrounds of the metro stations.
“A comparative study with the experiments of countries which have made advanced progresses in mass transit systems, particularly the metro, such as the UK, Germany, Japan, Hong Kong, and the USA, revealed that public transit means in general have a positive impact on appreciating the value & rents of properties, and that such rates made remarkable hikes ranging from 3 to 50%,” continued Abdul Mohsin.
“In less than 3 years, the Dubai Metro has generated high economic returns highlighted by its ability of enhancing the competitiveness of the Emirate as regards the attraction of commercial activities as well as the local & international events spanning conferences, sports events, and cycling races. Moreover, it contributed to augmenting the revenues of the Emirate generated by advertising activities, naming of stations and leasing of commercial outlets,” said the CEO of RTA Strategy & Corporate Governance Sector in a final remark.