UAE - Residential properties within 15 minutes of a metro station across Dubai have been able to outperform the wider property market in terms of property prices and rental performance, according to global real estate consultancy CBRE.
In its Dubai Metro 2023 report, CBRE noted that in terms of sales market performance, properties within a 15-minute walk of a Dubai Red Line metro station saw an average price increase of 26.7% from Q1 2010 to Q4 2022, outperforming the Dubai average increase of 24.1%.
The report examines the impact of the Dubai Metro on residential prices and rents. More specifically, it looks at determining whether residential units within a 15-minute walk of a Red Line station are able to achieve a price and rental premium or outperform, or both.
As part of its methodology, the real estate expert analysed the development of average prices and rents per square foot for more than 300 residential or mixed-use properties since the Dubai Metro opened in 2009.
It added that the highest price growth rates were seen for properties falling within a 10 to 15 minute walking distance, where prices increased by an average of 43.8 per cent.
Looking at the rental market, CBRE found that the average rent for properties within 15 minutes of a Red Line metro station in Dubai increased by 5.7% from Q1 2018 to Q4 2022.
During this period, average rents in Dubai fell by 4.1 per cent. The highest rental growth rates were seen for properties falling within 10 to 15 minutes' walking distance, where rents increased by an average of 11.7 per cent, the report added.
Taimur Khan, head of Mena research at CBRE Dubai, said: "Our research shows that developments within 15 minutes of a metro station can significantly outperform the wider market, both in terms of rents and prices."
"However, as Dubai matures, this proximity is increasingly just one part of the underlying factors driving this performance," he noted.
"Looking ahead, developers will have to increasingly focus on providing the right urban infrastructure around their developments, including but not limited to walkable, scooter and bike-friendly neighbourhoods as well as mixed-use and decentralised developments, to help achieve similar levels of performance," Khan noted.
"We've seen this change in fundamentals, and early evidence suggests that developments with this favourable urban infrastructure and proximity to the metro are already performing significantly in terms of price and rents," he added.
