Transit premium increases value of nearby developments
The assumption out there is that living near a train line will be noisy all the time and your property value will suffer. But is that the right assumption?
It’s not true at all. Cities from Dubai to London see a rise in the value of residential units the closer in proximity they are to train and transit routes and options.
The idea of a ‘transit premium’ is well documented in both academia and industry, with cities, developers and real estate agencies all using this to increase return on investment.
In London, we reported last year that property values were rising between 20 and 25 per cent in the areas connected by the upcoming ‘Elizabeth Line’. This rise is seen all over the city, from the far-flung suburbs to central London. The ‘Crossrail effect’ is a well-established phenomenon and every development in cities around the world will try and tout a connection to new transit.
Every development in Nine Elms and Battersea Power Station will be connected to a new Northern Line extension, for example, a big selling point for property investors and potential new homeowners.
In Miami, the Brightline, new high-speed rail line connecting Miami to West Palm Beach, wasn’t built on need, but rather the desire to create a mini-boom in property development and a rise in values in Downtown Miami. Another boom of apartments, offices, and restaurants has started to sprout up in the three cities connected by the line, and more are coming soon, each touting the accessibility to a new train line.
The Dubai Metro is a relative newcomer to the world of urban transit systems, but the effect on property values in Dubai is very clear. Reports from this year have indicated that residential units near stations in Dubai have a very large premium attached to them.
Homes within 1.5 kilometer radius (a 15 minute walk) of Dubai Metro and Dubai Tram stations have been boosted in value by up to 41 percent. Even before new extensions and lines are operational, prices are being reported as rising in parts of the city.
From Battersea Power Station to The Residences Dorchester Collection in Dubai, Copperstones has a variety of properties that take advantage of the ‘transit premium.’ For more information and to inquire about availability, please call 08 445 555 555 or +44 203 888 5555, or email us at enquiry(at)copperstones(dotted)com.
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