Property owners profit from Metro proximity

Being close the Dubai Metro’s Red Line is paying off for property owners.

Prices for apartments within a five-minute walk of a Metro station have risen 51 per cent from the first quarter of 2010 to the first quarter of 2018, while those within a 10-minute walk have gained 58 per cent on average.

And those within a 15-minute walk are up 33 per cent on average, according to a report from Knight Frank.

Keep in mind that buildings near the Metro would have been sold at a higher premium at the time of their launch.

And even with the market passing through a correction since mid-2014, Metro-side properties have managed to hold up.

“As at first quarter 2018, the average price per square foot for buildings within a 5-minute walking distance was recorded at 4 per cent below Dubai’s average price per square foot,” the report noted.

Those within 10 minutes are at a 9 per cent premium and those for those situated in a 15-minute walk time, are at a “sizeable” 32 per cent premium over the Dubai average.

The population in the four main Metro areas on the Red Line — Jumeirah Lake Towers, Dubai Marina, Business Bay and Downtown — grew by 145 per cent on average in the five years to 2017. Dubai’s overall population growth over the same time period was 41 per cent.

Where they have the chance, developers are following the extension of the lines and profit from that outcome.