From ‘too far’ to next door: How Etihad Rail will reshape UAE property markets
The launch of Etihad Rail’s passenger services in 2026 is set to transform the UAE’s real estate landscape, with Tier-2 and Tier-3 cities expected to gain prominence as connectivity improves between major hubs and outlying regions.
According to property experts, the national rail network will enhance speed and convenience of travel between Dubai, Abu Dhabi, and cities such as Al Dhaid, Ruwais, and Fujairah, driving greater demand for housing in these areas. This development could potentially elevate smaller towns into Tier-1 and Tier-2 property markets.
“The launch of Etihad Rail is set to transform the UAE’s residential property landscape by making inter-emirate commuting faster and more convenient. Locations that were once seen as too far from major employment hubs, such as Ras Al Khaimah, Fujairah, and emerging communities in Abu Dhabi and Sharjah, are likely to see an increase in demand for both off-plan and ready homes,” said Mark Castley, CEO of Real Estate at Huspy.
He explained that large-scale infrastructure projects like Etihad Rail typically generate real estate growth in connected areas, as better accessibility creates new demand and opportunities for investment.
Industry experts highlight that Tier-1 cities are highly urbanised with advanced infrastructure and higher living costs, while Tier-2 cities offer affordability and lower density. With the railway reducing travel times and costs, more residents are expected to relocate further from current city centres in search of larger homes and better value. This trend is likely to push up rental prices in previously overlooked locations.
The passenger rail service, spanning approximately 900 kilometres and connecting 11 cities across the seven emirates, is projected to carry 36.5 million passengers annually by 2030. Once operational, it is expected to reshape commuting habits and further stimulate real estate activity across the country.
Firas Al Msaddi, CEO of fäm Properties, noted that landlords and developers are already observing early shifts in tenant preferences toward communities with future rail connectivity, anticipating long-term benefits for both investors and residents.
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