UAE: Property prices, rents in some areas near Etihad Rail stations could rise by up to 15%

Some properties could see value increases of up to 15 per cent following the recent announcement from Etihad Rail, real estate experts said. However, they emphasised that the full impact is likely to be felt gradually as the project unfolds and progresses.

“It’s likely that areas around the Etihad Rail stations could experience rental and price increases of around 10 to 15 percent,” said Jeff Raju, CEO of Manifest Real Estate. “The proximity of properties to metro and Etihad Rail stations will likely play a crucial role in determining their value.”

Svetlana Vasilieva, head of secondary sales at Metropolitan Premium Properties, agreed, adding that specific areas like Al Jaddaf are expected to see price increases of 5 to 7 per cent.

“Projects with big apartments layouts located closer to the station may increase up to 10 per cent once Etihad Rail is operational,” she noted. “I expect a higher price rise in Saadiyat island due to well established social infrastructure and higher demand, comparing to Reem and Yas Island.”

However, some experts pointed out that property value increases may take time to materialise. Evgeny Ratskevich, CEO of Metropolitan Capital Real Estate, noted that while the immediate impact on property price may be “limited”, the long-term effects will be felt slowly.

“We anticipate a gradual increase in value, particularly for properties located in close proximity to the rail stations as more residents seek the convenience of shorter commutes between Dubai and Abu Dhabi,” he explained.

The Etihad Rail network took a significant step forward on January 23 with the unveiling of its first high-speed, all-electric passenger train that will help commuters travel between Dubai and Abu Dhabi in just 30 minutes.

Operating at speeds of up to 350 kmph, the train will pass through six stations, including four in Abu Dhabi: Reem Island, Saadiyat, Yas Island, and Zayed International Airport. In Dubai, the stations will be near Al Maktoum International Airport and Al Jaddaf area. Earlier, two stations were also announced in Fujairah’s Sakamkam area and Sharjah University City.

Areas surrounding the Etihad Rail stations will experience substantial property value increases, noted to Fibha Ahmed, VP of Property Sales at Bayut. Drawing from past trends, she explained how the launch of the Dubai Metro led to price hikes in areas like JLT and Dubai Marina due to improved connectivity.

“When the Metro was launched in Dubai, areas like JLT and Dubai Marina saw property values rise due to improved connectivity,” she said. “I expect the same for locations along the Etihad Rail route, including ports, industrial zones, and urban centres across all seven emirates. Its extensive network will enhance accessibility, boosting demand for nearby properties.”

The high-speed train is expected to contribute Dh145 billion to the UAE’s GDP over the next five decades. Besides this, Etihad Rail will also be rolling out a regular passenger train.

Experts also believe that the rail network will drastically alter commuting patterns and work opportunities. “It will potentially reshape residential choices and work opportunities across both emirates,” said Mohammad Braiwish, managing director of UAE-based transportation and traffic technology company TrafQuest.