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As with the Metro earlier, a new tram service will have a favourable impact on a prime piece of Dubai's real estate. Starting the testing phase this week ahead of a commissioning later in the year, the new tramway will also go some way in decongesting movement into and out of Dubai Marina, market sources said.
''Phase 1 of The Dubai Tram network 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,'' Steve Morgan, who heads Cluttons' regional operations, said.
The Tram will link up with the Metro and Palm Monorail and run along Al Sufouh Road and Jumeirah Beach Road from Mall of the Emirates at one end, to Dubai Marina on the other.
Cluttons' recent market tracker showed the Dubai Marina cluster as recording capital value gains of between 8.5 per cent to slightly more than 10 per cent in the third quarter. These gains, according to the consultancy, are ahead of the average for Dubai as a whole during the same period.
''With Meraas' Jumeirah Beach Village and Blue Water's development, we anticipate interest to secure a home in Dubai Marina to gather further momentum,'' Morgan said. ''The Jumeirah Beach Residence [JBR] community remains the top target for most buyers in Dubai Marina due to its beachfront location and extensive Jumeirah Beach Walk retail colonnade.''
The tram services, the first phase of which is scheduled to go on-line in November, ''will definitely remove some of the persistent congestion at the high density locality that is at Dubai Marina now,'' Chandrakant Whabi, CEO of Acrohouse Properties, said.
When Phase 1 of the Tram service is complete, it will run for 20 hours a day from 5am until 1am, effective in reducing the build-up around the access roads to Dubai Marina and JBR.
''Historically, any new addition to the transportation infrastructure has had immediate as well as lasting gains for Dubai property; with the Metro, it is the commercial properties at Business Bay and Jumeirah Lakes Towers [JLT] that have benefitted most and they have a certain premium attached to them because of the proximity,'' Whabi said.
While Dubai Marina is still seeing new projects from the likes of the Select Group, demand for units is being led by investors, enthused by yields of around the 6-8 per cent, according to Cluttons.
Source: Manoj Nair, Associate Editor, gulfnews.com