Dubai’s Transport expansion raises property prices

Over 16 years, the Metro network helped reduce travel distances by nearly 29.8 billion kilometres, easing congestion and improving mobility between districts

Dubai’s property prices have risen by up to 16 per cent as a direct result of the emirate’s transport and infrastructure projects, according to a new McKinsey & Company study commissioned by the Roads and Transport Authority (RTA).

The analysis found that proximity to metro stations and major highways remains a key factor driving real estate appreciation. Neighbourhoods linked to Dubai’s transport network, including Downtown Dubai, Dubai Marina and Business Bay, recorded gains exceeding the overall market average, highlighting the impact of improved accessibility and reduced travel times on property demand.

The report was released on Sunday as the RTA marked its 20th anniversary. At the centre of Dubai’s transformation is its Metro; the first of its kind in the Gulf region. Over 16 years, the network has helped reduce travel distances by nearly 29.8 billion kilometres, easing congestion and improving mobility between business and residential districts. The Dubai Metro and Dubai Tram extend over 100km through the emirate.

The study further revealed that accessibility to major destinations across the emirate exceeds the averages recorded in comparable global cities, owing to Dubai’s road network. Over the past 15 years, more than 9.5 million tonnes of carbon dioxide emissions have been avoided through increased reliance on the Metro and public buses, coupled with reduced congestion and shorter travel times. This reduction equates to a monetary value of “several billion dirhams when measured against global carbon credit trading rates and has also had a direct positive impact on public health by reducing respiratory and cardiovascular illnesses”, the RTA said.

The upcoming Dubai Metro Blue Line, a 30-kilometre extension with 14 stations, will serve six key districts with a projected population of one million residents by 2040.

The study linked Dubai’s growth to two decades of sustained investment in mobility infrastructure. Since 2005, the emirate has invested Dh175 billion in roads and transport systems, generating Dh150 billion in revenues and saving Dh319 billion in fuel and time costs. During this period, RTA’s projects contributed Dh156 billion to Dubai’s GDP, while property values rose by roughly Dh158 billion as a direct result of enhanced connectivity.

The findings also estimate the internal rate of return on RTA’s investments at 5 per cent, with total cash returns projected to exceed Dh254 billion by 2050; figures described by the authority as exceptional within the global transport sector. Over the past decade, RTA’s work has also attracted more than Dh32.4 billion in foreign direct investment, particularly across logistics, distribution and transport services.

The study also highlighted Dubai’s cost efficiency in infrastructure delivery. The average annual length of road lanes built by RTA reached 829km, double the global average of about 400km.

Mattar Al Tayer, Director General and Chairman of the Board of Executive Directors of the RTA, said the findings underscored how transport investments have become a catalyst for Dubai’s long-term growth. “Dubai is also preparing to enter a new era of sustainable mobility in 2026 with two world-first initiatives: the operation of autonomous taxis and the launch of the aerial taxi service, both of which will reinforce Dubai’s global leadership in future mobility.”

Dubai has commenced trial flights for its air taxis, with a network of vertical take-off and landing stations set to be established across the city by next year.

The study also noted that RTA has launched a programme to test autonomous taxis, with the objective of achieving 25 per cent of total mobility in Dubai through autonomous transport by 2030.