Tuesday, 02 January 2024 12:17 GMT

Etihad Rail To Influence Abu Dhabi Rents First And Then Prices, Says New Report


(MENAFN- Khaleej Times) Etihad Rail's new passenger connection between Abu Dhabi and Dubai could begin reshaping where residents choose to rent and buy, with rents around stations potentially responding before property sale prices, according to betterhomes.

The property consultancy expects the earliest impact to emerge in property enquiries and viewing requests around Mohamed Bin Zayed City and future station locations, rather than immediately in headline prices.

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The assessment comes as Etihad Rail significantly expanded its passenger network on September 30, with services beginning from Dubai's Al Yalayis Station and Al Dhaid in Sharjah, three months after the introductory Abu Dhabi-Fujairah passenger service began in June.

Abu Dhabi-Dubai in just over an hour

Etihad Rail now operates 10 daily journeys between Abu Dhabi and Dubai five in each direction, giving residents several options to travel between the two emirates throughout the day.

The direct journey takes around one hour and four minutes, while the Dubai-Fujairah journey takes about one hour and 10 minutes. The operator also runs six daily journeys between Abu Dhabi and Fujairah.

Fares from Dubai to Abu Dhabi started at Dh39 in Comfort class, while Dubai-Fujairah fares started from Dh29 when the new services launched, although ticket prices can vary depending on the travel date.

The first passenger train from Dubai departed Al Yalayis Station at around 6.14am on September 30, reaching Abu Dhabi shortly after 7.30am.

Mohamed Bin Zayed City in focus

In Abu Dhabi, passengers use Mohamed Bin Zayed City Passenger Train Station, placing an operational inter-emirate rail connection within one of the capital's established residential areas.

Betterhomes said that distinction matters for the property market. Etihad Rail is no longer simply infrastructure shown on future masterplans - buyers and tenants can now calculate commuting times using an operating service and published timetable.

For residents travelling regularly between Abu Dhabi and Dubai, proximity to the station can therefore become another measurable factor when choosing a home, alongside price, size, amenities and community.

Dubai station connects directly to Metro

At the Dubai end, passengers use Al Yalayis Station in Jumeirah Golf Estates, which is connected to Jumeirah Golf Estates Metro Station on the Dubai Metro Red Line through a dedicated pedestrian link.

The connection allows passengers arriving by Etihad Rail to continue their journeys across Dubai by Metro without needing a car.

Passengers booking Etihad Rail journeys can also add a Nol One-Day Pass starting from Dh22, allowing eligible unlimited journeys on Dubai Metro, Tram and buses using a single QR code.

The integration could make rail more practical for people commuting between the two emirates, particularly those whose workplaces or other destinations are already served by Dubai's public transport network.

Rents could react before sale prices

Nada Osman, Director of betterhomes Abu Dhabi, said greater certainty around commuting could influence what residents are willing to pay for homes near stations.

“Rail gives people certainty about the commute, and certainty is what buyers pay for. We expect to see it in rents near the stations first, with sale prices following as that demand settles in,” Osman said.

Betterhomes cautioned that any effect on headline property prices would take longer to emerge and would depend on many factors beyond transport connectivity.

Globally, major transport infrastructure tends to influence where people search and what locations they consider before the effect becomes visible in transaction prices, the consultancy said.

Sharjah's Al Dhaid joins passenger network

Sharjah's Al Dhaid Station also began appearing on Etihad Rail's passenger booking network for journeys from September 30, providing communities in the emirate's central region with direct rail links to Abu Dhabi and Fujairah.

two daily services in each direction between Al Dhaid and Fujairah and two each way between Al Dhaid and Abu Dhabi.

The journey from Al Dhaid to Fujairah takes about 25 minutes, with fares starting from Dh19.

The expansion means the property impact of passenger rail could eventually extend beyond Abu Dhabi as more communities gain practical access to the national network.

Dh10 connections across Abu Dhabi

Etihad Rail has also introduced last-mile connections from Mohamed Bin Zayed City Station to other parts of the capital.

A Dh10 shuttle service connects the station with ADNOC headquarters on Corniche Road West, ADNEC Centre and Reem Mall/Reem Island

The buses are timed around train arrivals and departures, helping passengers reach central Abu Dhabi without relying entirely on private cars.

The combination of inter-emirate rail and onward public transport connections could broaden the areas from which residents can realistically commute.

Buyers could rethink what 'location' means

For Abu Dhabi's property market, betterhomes believes the biggest initial change could therefore be in how residents define a convenient location.

A home does not necessarily need to be closest to a workplace if a reliable rail connection can significantly change the commute.

For people working in Dubai but considering living in Abu Dhabi - or households whose work and personal lives span both emirates - access to Etihad Rail could become another consideration when choosing a community.

Betterhomes expects enquiry patterns, searches and viewing requests to provide the first indication of whether this is happening.

The consultancy said the impact on rents could follow as demand around well-connected areas becomes clearer, while any effect on sale prices would likely take longer to establish.

The network is still expanding, meaning the full property impact will take time to measure. But with the Abu Dhabi-Dubai connection now operational, betterhomes said one of the most important changes is already taking place: buyers and tenants have started asking different questions about where they want to live.

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