Rents in residential towers located near Metro stations in Jumeirah Lakes Towers (JLT) are between 13 and 26 per cent higher than ones further away, according to data analysed by Emirates 24|7.
Asking rents in towers close to the Metro station in JLT currently range between Dh85,000 and Dh100,000 per annum (pa) for one-bedroom units and Dh110,000 to Dh130,000 pa for two-bed units.
Lease rates for one-beds in The Palladium range between Dh95,000 and Dh100,000 pa, while two-beds are being leased for Dh110,000 pa to Dh130,000 pa.
Rents in MAG 214 start from Dh85,000 to Dh95,000 pa for one-bed and two-beds are at Dh110,000 to Dh120,000 pa.
In Indigo Tower, rents for one- and two-beds range between Dh85,000 to Dh90,000 pa, and Dh115,000 and Dh120,000 pa, respectively.
In contrast, rents vary between Dh75,000 to Dh85,000 pa for one-beds and Dh90,000 to Dh95,000 pa for two-beds where residents necessarily have to take a taxi or need to walk for over 20 minutes to reach the station.
Why pay a premium?
Kaushik Shah, an accountant by profession, says: “We don’t have a car and I don’t intend to buy one. So we thought of renting an apartment near the Metro station.”
He admits he pays a premium, but adds: “If you take into consideration the cost of taxis or registration, insurance and parking permits for a car, it seems worth paying the premium.”
Mary Ditas works as a manager of a shop in Dubai Airport.
“We friends have taken this apartment in a tower next to the Metro. It makes our commute to work and back home easier. There is no traffic, no delays and it's very convenient.”
Metro's positive impact
A comparative study with countries that have mass transit systems in place, mostly the Metro, such as the UK, Germany, Japan, Hong Kong, and the US, revealed that public transit means in general have a positive impact on appreciating the value and rents of properties, and that such rates can rise by three to 50 per cent over the years.
In fact, a Roads and Transport Authority (RTA) report in 2012 said that the Dubai Metro, since it started in 2009, has had a positive contribution to the appreciation of the value of lands and commercial properties in the vicinity of the stations with price going up by seven to 34 per cent.
(Note: Asking rents are based on online listings on various real estate portals and newspaper adverts.)