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Property prices could rise around metro stations in Dubai

Areas such as Jumeirah Lakes Towers and Business Bay could be sold at a 10% premium because of the number of metro stations nearby, experts say.

A tracker system to monitor prices of properties near metro stations has been set up by analysts at Dubai-based Investment Boutique.

'In cases around the world where a new metro system has been introduced, we have seen a premium on properties nearby the stations,' said head of research Safeena Rangooni-Lakdawala.

'Dubai is not a city which relies a great deal on public transport, so we will have to wait and see whether the effect will be that pronounced. But we should see a premium of around 10% on properties that are next to the stations, than those which are up to five kilometres away.' He added.

The impact is most likely on properties between the Trade Centre and Business Bay where there are four stations. Although other areas such as Dubai Marina have a station, residents still need to cross the bridge over Shaikh Zayed Road, before they can reach the metro so the effect would be less pronounced there, said Rangooni-Lakdawala.

Elaine Jones, CEO of property management company Asteco, said that a lot would depend on the ease of access of the metro. 'It will be a benefit to the nearby community. When we look at a property, we look at convenience and connectivity,' she said.

'How it affects prices will depend on the ease of getting to and from the stations, and the park and ride facilities. Places such as Discovery Gardens, in particular, will benefit because of the number of buses there,' she added.

The 52 kilometre Red Line runs the length of Shaikh Zayed Road and opens in September. It will be supported by a fleet of 778 RTA buses.