The new Dubai Tram that is slated to be launched in November could add significant value to the properties around this new mode of transport. After the success of Dubai Metro, now the Dubai Tram project could further change the dynamics of the UAE real estate sector, said an expert.

With this launch, Dubai will join the league of other cosmopolitan cities including New York, Toronto, London and Hong Kong that have immensely benefitted from trams, stated international property agency Chestertons in its report.

The tramway will provide a huge relief and will be an alternate mode of transport for visitors to the Jumeirah Beach Residence (JBR) and Marina area in Dubai, who usually rely on taxis for commuting purposes; which result in daily traffic snarls in the area, it added.

"Infrastructure enhancement and the growth in the public transport network will definitely have an impact on the real estate sector. The proximity to high-capacity transit halts has proven to increase property rates, a phenomenon known as the 'transit premium'," remarked Simon Gray, the managing director at Chestertons Mena.

"This has been true in the case of Jumeirah Lake Towers, which is in the limelight and a much- sought-after destination after getting connected with the Dubai Metro network," he pointed out.

"The areas which have relatively poor transport links currently with lower property value could see a hike in property growth as the tramways pass through them - making these buildings accessible to the tram stations," said Gray.

"The tramway is definitely going to add significant value as it is potentially poised to change the dynamics of the property prices by making it more attractive. The price hike would be primarily more pronounced in areas with easy access to the tramway," he added.

Robin Teh, the country manager, Chestertons Mena, said the transit premiums ranged from a few per cent to over a 150 per cent increase in property values.

"The rise in property values near transit was most dramatic for office and retail spaces. The price swings for property located near and around the tramway will be triggered by the new infrastructure as per general consensus, but the facts would emerge once Phase One of the network opens in November," he noted.

Businesses will also stand to benefit as the tramway will increase the volume of people travelling into JBR, apart from tapping the vast tourism potential of the area,” said Teh.

Apart from providing better connectivity to the Dubai Metro network, Teh said the Al Sufouh tram was set to woo commuters by providing an improved flow of traffic in the city.

"Effective transport links between transport modes helps to mould sustainable development through demand management. Better connectivity between transport modes are strategic priorities which can bolster and create an impact on the competitiveness of the city," he added.

According to Chestertons, trams are efficient as they are fuel-effective and provide more capacity than buses, thus enjoying much popularity than other modes of transport.

This project will be a huge success and will bring added value to Dubai’s existing state-of-the-art public transport system, it added.-TradeArabia News Service