Dubai: Property values and rents in areas near Etihad Rail stations may increase by as much as 15%, real estate experts predict. The transformative impact of the new rail network, which promises faster and more convenient intercity travel, is expected to boost demand for properties in strategically located areas.
Proximity to Rail Stations Driving Value
“Areas around Etihad Rail stations could see rental and property price increases of 10 to 15%,” said Jeff Raju, CEO of Manifest Real Estate. He emphasized that proximity to rail and metro stations will play a critical role in determining property value.
Svetlana Vasilieva, Head of Secondary Sales at Metropolitan Premium Properties, agreed, noting that certain locations, such as Al Jaddaf in Dubai, are expected to see a 5 to 7% increase in property prices. “Large apartment projects near the stations may see price hikes of up to 10% once the Etihad Rail becomes operational. Saadiyat Island, with its established infrastructure and strong demand, is likely to experience even higher increases compared to Reem and Yas Islands,” she added.
Gradual Impact Expected
While the long-term potential is promising, some experts believe the immediate impact on property prices may take time. “The value appreciation will be gradual as the rail network becomes fully operational and residents experience the benefits of shorter commutes between Dubai and Abu Dhabi,” said Evgeny Ratskevich, CEO of Metropolitan Capital Real Estate.
Etihad Rail: A Game Changer for Connectivity
On January 23, Etihad Rail unveiled its first high-speed, all-electric passenger train. Operating at speeds of up to 350 km/h, the train will connect Dubai and Abu Dhabi in just 30 minutes, passing through key stations like Al Jaddaf and Al Maktoum International Airport in Dubai, and Reem Island, Saadiyat, Yas Island, and Zayed International Airport in Abu Dhabi. Stations in Fujairah’s Sakamkam area and Sharjah University City will also be part of the network.
This infrastructure milestone is expected to contribute AED 145 billion to the UAE’s GDP over the next 50 years, enhancing intercity connectivity and reshaping residential and work choices.
Boosting Demand and Property Value
“Drawing from past experiences, such as the Dubai Metro launch, we can anticipate a similar trend for areas along the Etihad Rail route,” said Fibha Ahmed, VP of Property Sales at Bayut. “Improved connectivity historically led to price hikes in areas like JLT and Dubai Marina. Similarly, locations along the Etihad Rail route, including urban centers and industrial zones, will see increased demand and value.”
Real estate experts also highlighted the strategic placement of stations near international airports and major event venues. “For events like Formula 1, the rail service will boost accessibility for both international visitors and locals. This will drive demand for properties near these stations,” said Mohammad Braiwish, Managing Director of TrafQuest.
Key Areas Poised for Growth
Certain developments are expected to benefit the most from the Etihad Rail project. “Emaar South, Dubai South, Damac Hills, Nshama, Creek Harbour, and Al Jaddaf are among the areas that stand to gain significantly from this infrastructure investment,” said Jeff. He added that improved accessibility and reduced travel times between Dubai and Abu Dhabi will make these areas more attractive to residents and investors alike.
Elie Naaman, Co-founder and CEO of Ellington Properties, noted that Al Jaddaf station in Dubai and Saadiyat and Yas Islands in Abu Dhabi are set to become major growth hubs. “Infrastructure advancements will enhance property appeal, creating vibrant, connected communities,” she said.
Looking Ahead
With the rollout of Etihad Rail’s high-speed and regular passenger trains, the UAE’s real estate market is on the cusp of a significant transformation. As accessibility improves and commuting becomes more efficient, properties near rail stations are expected to emerge as prime investment opportunities for residents and investors alike.
