As testing on Dubai’s new tramway begins, Cluttons, an international real estate consultants, believes the tram network will boost buyer demand and prices in Dubai Marina and Jumeirah Beach Residence (JBR).
Steve Morgan, head of Cluttons Middle East, said: “The current strength of buyer demand in Dubai Marina and JBR has no doubt been further bolstered by the enhancement of critical infrastructure in and around this popular residential location. Phase 1 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.”
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 and JBR to gather further momentum."
The JBR community remains the top target for most buyers due to its beachfront 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 Arabian Gulf further add to the appeal.”
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. 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.
Morgan added: “It’s not just individual buyers who are rushing to close deals at Dubai Marina and JBR; 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% - 8% mark.
“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."