As everyone knows there are only three factors to consider when buying a property – and they are ‘location, location, location’.
That’s also true for Dubai, where the soaring real estate prices are not across the board but, apparently, centred on those areas with excellent transport links.
The city is renowned for its transport network which, on a daily basis, carries millions of commuters to work on the metro, buses and taxis.
Now, property consultants Chesterton International says it is ‘difficult to ignore’ the impact of public transport on new real estate developments which have a huge influence on a property’s value.
They say properties in locations with good amenities and with a well-connected public transport system are sought after in Dubai.
Transport of delight
A spokesman for the firm said: “Traditionally, the most crucial factors in selecting property were the presence of good schools and excellent neighbourhood amenities but it now appears that the availability of transport options help sustain property values.
“For any leaders pondering on how to stimulate their real estate market, it would be a good start to integrate neighbourhoods with public transport systems with any potential building costs being shared.”
The firm points to American research which showed that while real estate values dropped substantially between 2006 and 2011, those properties which were near to public transport links were surprisingly resilient in the market downturn.
Many people renting or buying a property in Dubai want to avoid a commute through heavy traffic congestion and instead they are opting to live near better transport links.
Rents rising
The property consultancy points to the Discovery Gardens as being a good example of this movement in Dubai since its rents have increased by 30% after the Metro was extended to it.
In contrast, other well-known developments such as Dubai Silicon Oasis, Dubai Sports City and Jumeirah Village are suffering because of the lack of public transport.
The report from Chesterton International has been underlined by property firm Asteco which says prices are rising in the most desirable parts of Dubai – and the presence of public transport is crucial.
Indeed, prices are rising so quickly that some buyers and tenants will be priced out of communities and certain buildings.
The firm says that the cost of apartment in Dubai has risen by an average of 12% in the first quarter of 2013 – that’s 27% year-on-year – and that villa prices have rocketed by 21% in the year.
Rents are increasing too with those for villas increasing by 4% and for apartments by 3%, over the past year.
