Dubai: Buildings located close to Metro stations may not necessarily experience a hike in value, contrary to popular expectations, agents say.
In fact, Landmark Advisory expects some properties near the Metro could even depreciate in value.
"Some units may experience price declines due to proximity to the Metro line," says Jesse Downs, director of research and advisory services, Landmark Advisory.
"Those units on lower levels that are located on the Metro lines or near the rails may depreciate or experience rental declines due to diminished views. While the Metro is reportedly 'quiet', there have been some reports of noise disturbances from nearby residents," she adds.
For the time being, Jesse says there haven't been noteworthy price changes in units near Metro stations."While there has not been much significant price fluctuation due specifically to proximity to Metro stations, we do anticipate that this will impact pricing going forward. This trend will take time to emerge and should correspond to the prevalence of Metro usage."
Ian Albert, regional director, Colliers International, says there's no sign that properties near Metro stations are increasing in value. "But they are transacting quicker," he notes. In the long term, he predicts demand for such properties:"We anticipate that once the Metro has established itself, like every other rail network of this type around the world, properties with good accessibility to the network will benefit from increased demand." Offices located near stations will have a unique selling point, says Jesse. "Once the Metro is operational and residents start using the Metro to commute to work, companies will realise the benefit of setting up offices close to the Metro stations. With a significant oversupply of office space, factors like proximity to Metro stations will be a distinguishing factor driving demand and determining prices."
Beyond public transport, the issue of infrastructure and access influences demand, says Jesse. "In general, accessibility is a major factor determining residential demand and this does influence pricing. However, overall location and quality tend to be the priority factors determining residential pricing." Quality transport and roads are important factors in future, as Dubai tries to compete with other regional hubs, she notes."The quality of infrastructure is a critical factor for Dubai now as other cities try to compete as a regional hub. When specifically comparing Dubai and Abu Dhabi, high quality infrastructure is in many ways mutually beneficial. Many companies operate in and between both markets and facilitating this helps both markets."
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