“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.
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“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 Islands.”
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.
'Reshape residential choices'
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.
“For major events like Formula 1, the service will enhance accessibility for international visitors and locals alike. Finally, the strategic placement of stations near international airports will streamline business and tourism connectivity," he added.
Improved accessibility
In Dubai, the Al Jaddaf station is expected to be a key area for growth, with improved access driving both demand and property values, noted Elie Naaman, co-founder and CEO of Ellington Properties.
"Similarly, Saadiyat Island and Yas Island in Abu Dhabi are also set to become significant transit hubs, pushing property prices higher. Infrastructure advancements like these will make properties near the stations more appealing to both residents and investors, creating connected, vibrant communities," she added.
Meanwhile, Jeff added that certain developments will see the most significant price increases from this infrastructure investment.“Developments in areas such as Emaar South, Dubai South, Damac Hills, Nshama, Creek Harbour, and Al Jaddaf stand to benefit the most from this infrastructure investment,” he said. "The intercity connectivity between Dubai and Abu Dhabi will make it easier for residents to commute between these two major cities.”
Evgeny further highlighted that new developments located near the stations are“likely to experience more pronounced price appreciation” due to improved accessibility and reduced travel times.