Thursday, October 22, 2009

Property location gaining prominence over rents in Dubai

Asteco, leading property services Company in the UAE, has confirmed that Dubai Metro will play a major role in office lease market.

With falling lease rates and availability of more new buildings in Dubai, office location is gaining more prominence, rather than the price, in determining where a company establishes its business, Asteco says.

The decline in property market will help in re-positioning Dubai, as an attractive business location, giving companies the ability to shop around for the best value for money. Offices offering excellent amenities for staff, will be the first to benefit, says Elaine Jones, CEO of Asteco.
Evidence from several international markets has also constantly revealed that land and property values and rentals, within the vicinity of stations, linked to metro lines are increasing considerably (almost 57 percent in the case of Tokyo-Kobe line in Japan). But, the increases do not work until the station is physically open, and not on just announcing the probable date of opening or when under construction.

As for property matters, it is always location that matters. If located close to a Metro station and a shopping mall with ample parking space, it will easily become the preferred option, says Jones. With more Metro stations being opened and people getting aware about its benefits, the ease of commuting by Metro will prove to an important factor when a company decides on re-location.

The RTA has confirmed that Ibn Battuta Metro will open by February 2010. Phase one of the Ibn Battuta Gate mixed-use development is managed by Asteco Property Management, on behalf of ‘Seven Tides’, the Dubai-based owners.

Located at the heart of the new residential and commercial corridor in Dubai, the Ibn Battuta Gate is within 400 metres of a Metro station, due to open soon. It will offer direct access to commercial business, heart of the Jebel Ali free zones and Dubai Marine, Jumeirah Lake Towers, Dubai Financial Center, Internet and Media City, Central Dubai and Dubai World Trade Center.

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