Rising Property Prices and Rents in the UAE Amid Etihad Rail Development
The national Etihad Rail project, which is expected to begin passenger service in 2026, has played a major role in the notable changes that have occurred in the UAE real estate market in 2025. In addition to revolutionizing public transportation in Dubai and other cities, this rail network, which connects 11 cities and regions across the seven emirates, has caused a spike in property prices and rents in the vicinity of the stations.
Significant Increases in Rent in Important Areas
According to market reports, during the last nine months, residential rents near Etihad Rail stations have increased by an average of 9%. Some regions have seen increases that are even more pronounced:
- Dubai Festival City: a 23% increase
- Dubai South: 10% expansion
This is similar to the Blue Line project by Dubai Metro, where rents increased by as much as 23%. Christopher Senna, Betterhomes’ sales director:
“Easy accessibility drives demand. We expect properties near Etihad Rail stations to be valued 10–20% higher than the market average.”
Increased Property Values and Attractiveness to Investors
In addition to rents, real estate values have increased significantly in these regions. Average property values have increased by 13% over the last nine months, with even larger increases seen in some areas:
- Dubai Festival City: 18% growth
- Dubai South and Dubai Investment Park: 17% growth
Given that additional acceleration is anticipated once the network is operational, this value spike has prompted investors to purchase early.
Etihad Rail: A Nationwide Initiative with Prolonged Effects
By 2030, the nearly 900-kilometer Etihad Rail network is expected to carry 36.5 million passengers a year. In addition to linking cities and areas throughout the United Arab Emirates, it will have a direct impact on investment and purchasing patterns in Dubai’s real estate market and beyond. Properties close to stations saw 15–25% value growth in the early years, according to a comparison with the Dubai Metro Red Line. Given its scale, experts think Etihad Rail has comparable potential throughout the United Arab Emirates.
Increasing Demand from Investors
Huspy Real Estate CEO Mark Castley made the following observation:
“Customer interest is significantly increasing. In order to profit from potential price and rent increases, many investors prefer to enter the market early. Around Etihad Rail stations, the experience we had in Downtown and Dubai Marina following the Metro launch will be duplicated—on a much larger scale.”
He forecasts:
- Over the next three to five years, property values close to stations will increase by 15% to 25%.
- Over the next 12 to 24 months, rents will increase by 10% to 15%.
Conclusion
Beyond merely providing transportation infrastructure, the Etihad Rail project is becoming a new source of growth for the real estate industry in the United Arab Emirates. The best returns for residents and investors will come from places that offer both affordable prices and easy access. The UAE real estate market is anticipated to enter one of its golden growth phases, with operations starting in 2026 and the greatest advantages going to early buyers.
Source: https://www.khaleejtimes.com