The announcement of the Blue Line of the Dubai Metro has moved the needle in the city, and investors have set off their alarms. This new investment in Dubai will not only change mobility within this thriving enclave but will also encourage investments in this business hub. This infrastructure project is part of the government’s plans to improve the quality of life for residents, as well as address the traffic issue that poses serious problems for the environment.
The Blue Line of the Dubai Metro will add 14 more stations to the existing ones in Dubai. According to the Roads and Transport Authority, this plan involves an investment of 4.9 billion dollars and will be completed in 2029, coinciding with the 20th anniversary of the Metro in this emirate. The stations will connect sites such as Dubai Creek Harbour, Festival City, Global Village, Rashidiya, Warqa, Mirdif, Silicon Oasis, Academic City, and others.
Why the Blue Line of the Dubai Metro Will Change the Investment Landscape
Economists state that the creation of this new Metro Line in Dubai will not only improve the quality of life for residents but there is also a direct relationship between this and the economy. This is explained in the CBRE report, which confirms that properties close to the stations are the ones that increase their price and rental rates the most compared to others.
This report states that from 2010 to 2022, the sale values of villas near the metro increased by 26.7 percent, while those located 10 or 15 minutes away experienced a price increase of 43.8 percent. Rentals also saw changes during this period, with a 5.7 percent increase between 2018 and 2022, while average rents in Dubai fell by 4.1 percent.
Which Areas of Dubai Will Experience Changes
The areas where the Blue Line of the Metro will have an impact are Jebel Ali, Dubai Marina, and Jumeirah Beach Residence, and real estate investors are already considering this variable to set new prices. Properties in these regions will be more attractive to residents and expatriates choosing to settle here, and this factor also applies to shopping centers.
Although precise predictions can’t be made regarding the increase, consultants confirm that it may range from 10 to 25 percent. The impact of the Blue Line will not only increase rental and sale values but also demand, a situation already being recorded in various areas of Dubai. Properties on the drawing board or buildings already under construction should consider this factor, as well as developers starting to build them.
The Impact of the Blue Line Beyond Real Estate
Like a machine in constant motion, the emirate continues to accumulate projects that will elevate its global status. In the vicinity of the Blue Line, more than 100 projects have already been registered to continue fueling the real estate engine. But beyond this benefit for the real estate sector, other impacts have also been recorded thanks to this mobility project. Real estate will not be the only ones benefiting; the residents of Dubai will also gain.
As RTA stated, this infrastructure work will reduce traffic congestion in Dubai by 20 percent. The increase in connectivity will mean that many people can attend various events, such as those planned at the Expo 2020 venue. Additionally, by seamlessly connecting to places like Dubai Silicon Oasis, Dubai International Airport, and the Dubai Investment Park, business travel will become easier and new professionals will find another reason to settle in the city.
