Dubai tram could boost Marina residential values
Dubai, January 26, 2014
The Dubai city’s first tram network will boost buyer demand further in the popular Dubai Marina area, according to a new report by international real estate consultants Cluttons.
The first phase of Dubai Tram network is scheduled to open in November this year. On completion, the tram will run for 20 hours a day from 5am until 1am helping to reduce the level of traffic that builds up along the roads around Dubai Marina and Jumeirah Beach Residence (JBR).
The entire Dubai Tram network will include 17 stations when fully complete, with seven stations expected to be completed in the second phase.
The Dubai Tram and other infrastructure projects that are underway are being fast-tracked to complement Dubai's 2020 Tourism Vision of hosting 20 million tourists, said Cluttons as the testing on Dubai’s new tramway begins this week.
Due to the successful Expo 2020 bid, improvement in infrastructure across Dubai is inevitable, with major investment accelerated towards transport infrastructure, retail, leisure and hospitality ahead of the event.
Steve Morgan, the head of Cluttons Middle East, said: "The current strength of buyer demand in Dubai Marina has no doubt been further bolstered by the enhancement of critical infrastructure in and around this popular residential location."
"The first phase of The Dubai Tram network, scheduled to open in November this year, is expected to boost buyer appeal even further by offering alternative commuting options to nearby business hubs such as Dubai Internet City, Media City and Knowledge Village, he stated.
According to Cluttons, Winter Property Update Dubai Marina continued to record increased levels of deal activity during Q3, with capital value growth rates between 8.5 per cent and just over 10 per cent, ahead of the average for Dubai.
Morgan said: "With Meraas’ Jumeirah Beach Village and Blue Water’s development, featuring the Dubai Eye, we anticipate interest to secure a home in Dubai Marina to gather further momentum."
The JBR community remains the top target for most buyers in Dubai Marina due to its beach front location and extensive Jumeirah Beach Walk retail colonnade.
Despite its relative maturity having launched in 2002, we have recorded a consistently high level of buyer demand for JBR properties, which is underpinned by the world class cosmopolitan lifestyle that comes with the area in addition to the unrestricted views of the Gulf further add to the appeal, stated Cluttons in its report.
Morgan added: “It’s not just individual buyers who are rushing to close deals at Dubai Marina; we are also recording a sharp upturn in investor appetite for both tenanted and vacant buildings, driven by attractive yields, which currently hover around the 6 to 8 per cent mark.
A good example of this is the Shams 1 building, which is currently on the market. Its proximity to the new tram station and positioning at the western fringe of the Marina means that we anticipate a quick and rapid sale of units in the residential tower given the magnitude of investor appetite for this type of asset class we have recorded recently, he explained.
According to Morgan, the infrastructure improvements such as the Dubai Tram and planned fast tracking of Dubai Metro’s Dh5 billion ($1.36 billion) Red Line extension to Al Maktoum International Airport in Jebel Ali and the Expo 2020 site, underscores the commitment of authorities to further improve Dubai’s connectivity.
The Dubai Tram was designed to be an integral part of the Dubai transport network, linking the Dubai Metro and the Palm Monorail and running along Al Sufouh Road and Jumeirah Beach Road from Mall of the Emirates at one end, to the Dubai Marina on the other.-TradeArabia News Service