The effect of the Dubai Metro on the value of residential and commercial properties

Sara Ishaq Mohammad; Daniel J. Graham; Patricia C. Melo

doi:10.5198/jtlu.2015.750

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Published

2015-10-06

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Vol. 10 No. 1 (2017)

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Articles

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How to Cite

Mohammad, S. I., Graham, D. J., & Melo, P. C. (2015). The effect of the Dubai Metro on the value of residential and commercial properties. Journal of Transport and Land Use, 10(1). https://doi.org/10.5198/jtlu.2015.750

The effect of the Dubai Metro on the value of residential and commercial properties

Sara Ishaq Mohammad

Imperial College London

Daniel J. Graham

Imperial College London

Patricia C. Melo

The James Hutton Institute

DOI: https://doi.org/10.5198/jtlu.2015.750

Keywords: Difference-in-differences, hedonic pricing, Dubai Metro, pseudo panel data, repeated cross-sectional data

Abstract

This paper analyzes the impact of the newly operated Dubai Metro on the sale transaction value of dwellings and commercial properties. The effect is estimated for properties within different catchment zones of a metro station using difference-in-differences and hedonic pricing methods on both repeated cross-sectional data and pseudo panel data. Our estimates show a positive effect of the metro on sale values of both residential and commercial properties, although the effect is stronger for commercial properties. The models also reveal that the effect of the metro on the value of dwellings and commercial properties is largest within 701 to 900 meters of a metro station and is about 13 percent and 76 percent, respectively.

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