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Dubai Metro on track with first red line stations completing this year

A series of tests on the Red Line in Sheikh Zayed Road were successful and all elevated stations on this line are now expected to be completed this year.

When finished the network will have 47 stations with elevated and underground platforms. It is based on a park and ride model with numerous car parks being built to accommodate thousands of cars at various stations along the lines to alleviate congestion.

Tailor made trains from Japan with interiors carrying a water and air theme offer three classes of travel. There is Golden Class, which will have a luxurious interior with leather seating. Woman and children's class which will offer additional space for strollers and bags and Silver Class for the economy traveller.

'The Dubai Metro will add yet another dimension to this rapidly expanding metropolis. With such a growing population, it was imperative that a transport system capable of catering for hundreds of thousands of people was instigated at an early stage,' said Oliver Hickey of Profile Europe (UK) Ltd.

As construction moves forward rapidly analysts predict that the Metro network will add to already booming property prices. Palm island builder Nakheel said prices of some units have almost tripled in two years and Colliers International estimated property prices in Dubai rose 42% in the first three months of this year alone.

But some are worried that the boom is showing signs of overheating as speculators betting on quick gains inflate prices of real estate still under construction.

Dubai should take measures to swiftly weed out short-term investors, such as introducing a capital gains tax on properties sold within a year of purchase, or risk a correction, according to Standard Chartered.

'The markets will correct themselves. It is best to try to take the heat out of it before it disciplines itself,' said Standard Chartered regional head of research Marios Marathefis. 'There are signs of excessive short-term speculative activity which is based on leverage. This kind of mentality is destabilising and it is dangerous and inevitably it leads to a correction,' he added.

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