Areas in the emirate including Dubai Marina are expected to witness a boost in property investment as the tram system approaches its launch date.
- Dubai’s new tram network set to boost interest in residential property
- System offers alternative commuter transport to nearby business hubs
- Attractive yields in Dubai Marina appealing to investors
Dubai’s new tram network will further boost demand for property in residential areas such as Dubai Marina, a real estate consultancy has forecast.
According to the Cluttons Winter Property Update, Dubai Marina saw a rise in real estate deals during the third quarter, with capital value growth rates well over the average at between 8.5% and 10%.
However, the brand new tram system, which is due to open to the public in November this year, is expected to further boost appeal to individuals and investors by offering efficient public transport to nearby business hubs such as Dubai Internet City, Media City and Knowledge Village.
Steve Morgan, 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.”
He added that as well as witnessing a rise in individual buyers who are keen to close deal in Dubai Marina, the firm has recorded an uptick in investor appetite for both tenanted and vacant buildings.
He attributed this to attractive yields, which currently stand at around the 6-8% mark.
The tram network and a number of other infrastructure projects are being fast-tracked in order to achieve Dubai’s 2020 tourism vision to host 20 million tourists around Expo 2020.
Major investment is being accelerated in various industries including: transport infrastructure, retail, leisure and hospitality.