Knight Frank's latest Dubai Metro 2018 report has found prices for apartments within five minutes walking distance of a metro station on Dubai's Red Line have risen 51 per cent, compared with 28 per cent on average across Dubai.

Prices for residential units within a 10-minute walk saw average price growth of 58 per cent, while those within a 15-minute walk saw a 33 per cent price growth.

Despite this, the report found the further one moves away from the metro, the price per square foot begins to increase, and achieves a premium over Dubai's average rate.

The report notes that as of Q1 2018, the average price per square foot for buildings within five minutes of a metro was 4 per cent lower than Dubai's average price per square foot, compared with 9 per cent and 32 per cent for those within 10 and 15 minutes respectively.

Meanwhile, rents in buildings between five and 15 minutes from a metro rose by 1.8 per cent on average, while rents fell elsewhere by 11 per cent within the same period.

"There is a range of factors which may be driving such trends, one of the prominent factors is related to affordability. Properties in close proximity to the Metro tend to command significantly lower prices and rents when compared to more prime areas which surround these Metro neighbourhoods," the Knight Frank report says.

"Given this and the development of the population’s income profile, where over the 10 years to 2017, we have seen that the middle class of Dubai has grown substantially, currently households earning up to $150,000 per annum (AED 550,500) make up 60 per cent of households, up from 40 per cent a decade earlier. This has meant that there has been a strong level of demand in the affordable to mainstream segments of the market."

Knight Frank Research Manager, Taimur Khan says, "Given the trends identified in Knight Frank’s Dubai Metro 2018 report, it is not a surprise we are seeing increased appetite from developers to focus developments along existing and upcoming MRTS routes such as the Expo 2020 route (Red Line extension) which is due to be operational by 2020.”

Click here to download the full Knight Frank Dubai Metro 2018 report.

For more information about the Knight Frank Dubai Metro 2018 Report, email Taimur Khan of Knight Frank via the contact details below.

Source: Knight Frank 

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