New road to Discovery Gardens... Will it drive rents, prices higher?

Dubai’s Road and Transport Authority (RTA) will complete a parallel road from Sheikh Zayed Road to Discovery Gardens by year-end.

For certain, it will being relief to residents of Discovery Gardens, the Gardens, Al Furjan and Maskin Al Furjan, who are often caught up in traffic jams during peak morning and evening hours, but the new access are likely to drive up rents and prices in the area.

“The roads are connecting the East and the West Parallel Roads to Sheikh Zayed Road through Interchange 5,5 and to Sheikh Mohammad bin Zayed Road, in addition to the proposed link to Discovery Garden area on the East Parallel Road (Al Asayel Street),” Maitha bin Adai, CEO Transport and Road Agency, RTA, told Emirates 24|7.

“This solution will come in the form of a few new roads, one of these being the new link to the parallel roads of Sheikh Zayed Road. This new road will improve the accessibility and ease the traffic jam from and to Discovery Gardens.”

The new road will have two lanes in each direction and will accommodate1,500 vehicles per hour in each direction, Maitha said, adding the new link is expected to take off pressure from the heavy traffic volumes that have been witnessed in the area.

Despite traffic congestions, rents in Discovery Gardens shot up by over 41 per cent in a 12-month period, starting Q1 2013 to Q1 2014. The pace, however, has slowed down in Q1 2014, with the area having registered on average a four-per cent increase, Asteco Property Management data reveals.

Read: Traffic, sewage stench no block to soaring Discovery Gardens rents

In the first quarter, studios were leased from Dh45,000 to Dh55,000 per annum (pa), one-bed units from Dh65,000 to Dh75,000 pa and two-bed units from Dh80,000 and Dh95,000 pa.

According to reports, with the population of Dubai expected to grow to 3.1 million in 2020 (at an assumed CAGR of 5 per cent), an additional 170,000 units will be required by 2020.

“As with any improvement to road or transport infrastructure this will make these communities a better place to live in terms of accessibility. Look what happened when the roads were improved for Jumeirah Lake Towers. The impact on rents will be a positive one, but this will take time to filter through,” Mario Volpi, Managing Director, Prestige Real Estate, told Emirates 24|7.

“Everyone is aware of the traffic nightmares getting in and out of Discovery Gardens, so any improvement here will be most welcome,” he added.

Faisal Baig, Director, PropSquare Real Estate, echoed the same view. “The new road will definitely make an impact on pricing and rent. At the moment, you need good 30 to 40 minutes to go in and out of the community. The new road will ease the traffic and will drive up prices and rents.”

Volpi, however, believes there is an oversupply in Al Furjan community, for now, and hence prices are stable/soft.

“But again improvements in the transport/road links will eventually improve prices for landlords,” he said.

Earlier this year, a temporary route was established between Discovery Gardens, Al Furjan and the E77 (Al Yalayis Road), which connects Sheikh Mohamed bin Zayed Road and Sheikh Zayed Road. The route was opened after residents in the area were trapped in the morning gridlock for over three hours in February.

Read: Nakheel opens temporary road to ease traffic in Discovery Gardens

By year-end, the community should have three new access and exit points. In addition to the new link to Sheikh Zayed Road and Sheikh Mohammed bin Zayed Road, a new 1.5 km-long internal road will form a link with Jumeirah Lakes Towers, Jumeirah Islands, Jumeirah Park and Emirates Hills.

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