UAE rents, property prices rise by up to 25% along Etihad Rail route

07/08/2025 04:12 AST

Property prices and rental rates in areas near the UAE's Etihad Rail have seen double-digit growth in 2025, with further appreciation expected. Real estate industry executives predict property values could increase by up to 25 per cent, while rents may rise as much as 15 per cent.

"Rental values in areas close to Etihad Rail stations have seen consistent growth, averaging a nine per cent increase over the past nine months. Dubai Festival City posted a standout 23 per cent rise, followed by a 10 per cent increase in Dubai South. This mirrors rental trends seen in areas under construction of the Dubai Metro Blue Line, where rents have already jumped by 23 per cent," said Christopher Cina, director of sales at Betterhomes.

"Accessibility creates demand, and properties located within easy reach of the new rail stations will command a premium, which we expect to be from 10 to 20 per cent."

Regarding property prices, Cina added that values in zones near Etihad Rail stations have risen by an average of 13 per cent over the past nine months.

"Dubai Festival City, located near Al Jaddaf Station, led the surge with an impressive 18 per cent increase, followed closely by Dubai South and Dubai Investments Park at 17 per cent each," he noted.

The UAE's national railway project is set to launch passenger services in 2026. Once operational, it is projected to accommodate around 36.5 million passengers annually by 2030. Spanning approximately 900km, the network will connect 11 cities and regions across all seven emirates.

Drawing comparisons with the Dubai Metro Red Line - where properties within a five to 15-minute walking radius appreciated by 15 to 25 per cent - Rupert Simmonds, director of leasing at Betterhomes, said: "Given Etihad Rail's national scale and its integration with key hubs like the expanding Al Maktoum International Airport, it's conservative to project a 10 to 15 per cent appreciation in residential values in the near future."

Growing buyer interest
With expectations of higher returns on properties near Etihad Rail stations, investor interest is surging, as many look to capitalise on early entry opportunities.

"We have seen a rise in client interest, with agents guiding clients toward strategic locations where they can enter the market early, with the expectation that demand will push both sales prices and rental yields upward. As stations become operational, the premium for well-connected homes, whether apartments or villas, will likely mirror the uplift we saw in Dubai Marina and Downtown after the metro launch," said Mark Castley, CEO of Real Estate at Huspy.

UAE rents, property prices rise by up to 25% along Etihad Rail route
He projected that residential properties near Etihad Rail stations could see a price increase of 15 to 25 per cent within the first three to five years following the launch of operations.

"The strongest growth is likely to occur in areas that combine affordability with improved connectivity, attracting both end-users and investors. This includes ready properties that will immediately benefit from better accessibility, as well as off-plan developments launched ahead of completion," he explained.

Similarly, Huspy's CEO anticipates rental values in the vicinity of the stations to increase by 10 to 15 per cent over the next 12 to 24 months.

Khaleej Times