Metro will transform Dubai's communities

Will the addition of more Salik tolls and the ever nearing Dubai Metro affect property prices?

Traffic continues to be a topic of debate among Dubai residents. Since the implementation of toll gates almost a year ago, a trip over Garhoud Bridge has become much more pleasurable. And since last year, work on the Metro has developed at a rapid pace.

The government is focused on doing all that it can to end the nightmare faced by so many Dubai residents on a daily basis as they venture to work. Initiatives that have been introduced include increasing the number of bridge crossings and widening existing roads, introducing toll gates to encourage people to use alternative routes, and building the metro. From a real estate perspective, the questions remain the same: will such measures have an impact on property prices in certain locations? Do people view areas close to toll gates negatively? And, will Dubai Metro add value to those areas it serves?

With Salik, there have been positives and negatives. The positives include the eased congestion in certain areas. The negatives include the increased congestion of roads that run parallel to toll zones. The Greens is an example of a community that became heavily congested with drivers avoiding toll gates when it was first introduced.

Little evidence

It was recently announced that the number of Salik gates will increase from September. So far, there has been little evidence to suggest that property prices or location preferences have been affected by the implementation of Salik. Now with the new measures coming in, I imagine that going forward, Salik will have an even lesser effect on the decision making process for real estate.

On the other hand, I feel that Dubai Metro is different. I think this will be a massive, positive change for those living and working in Dubai. In line with what happened in other cities with metro networks, I believe that Dubai Metro will have a positive impact on both residential and commercial property prices in the areas that it serves.

The only slight difference with Dubai, when compared to other cities with metros, is that the premium prices will probably only be achieved by those properties located within a small radius of the station, owing to the fact that people here are less willing to walk distances due to the hot and humid conditions.

Dubai is a rapidly developing city with a rapidly developing real estate market. Prices have risen at pace and are now much more closely aligned with those in other developed cities. Fixing the traffic problem and providing residents with as many travel options as possible, should help finish the jigsaw.

The writer is managing director of Better Homes.