Bayut Real Estate Company predicted that the high-speed train project between Dubai and Abu Dhabi would have a significant positive impact on the UAE economy and bring about a major transformation in real estate projects expected to be launched along the train route. This is expected to further boost the country’s real estate sector over the coming decades.
The high-speed train project connecting the capital, Abu Dhabi, with the Emirate of Dubai was officially announced at a ceremony organized by Etihad Rail at Al Fayah station on Thursday, January 23, 2025.
A recent report by Bayut stated that this project will further boost the market, which is currently recording all-time highs in transactions and sales. Additionally, it will facilitate a 70% increase in Dubai’s real estate transaction value, reaching AED 1 trillion, in line with the ambitious goals outlined in the Dubai Economic Agenda D33.
Etihad Rail will be responsible for developing and operating this project, building on its achievements in advancing the railway sector in the UAE and operating the national rail network with the highest levels of efficiency, quality, and reliability. The high-speed train will allow residents and visitors to travel easily between Abu Dhabi and Dubai in no more than 30 minutes, reaching a maximum speed of 350 kilometers per hour, while passing through key strategic destinations and major tourist attractions.
The high-speed train project will contribute up to AED 145 billion to the UAE’s GDP over the next five decades. In addition, it will have highly positive impacts across various economic, tourism, social, and real estate sectors, further strengthening the country’s position among leading nations in sustainable and modern rail transport. This is due to the project’s exceptional speed, efficiency, and mobility safety standards.
Urban Expansion
Bayut stated that the high-speed train between Dubai and Abu Dhabi will help stimulate urban expansion and the development of new residential and commercial cities. This project will make these areas more attractive for living, working, and launching new investments in sectors such as real estate, healthcare, education, entertainment, and other essential services. As a result, it is expected to attract substantial foreign investments as an indirect economic impact in both the medium and long term.
Bayut also noted that residential areas near the high-speed train stations will experience high demand for both living and rental purposes, as well as for business opportunities. Over time, horizontal expansion will gradually extend to more remote residential areas along the train’s route.
New Developable Land
The report highlighted that the high-speed train project will make a vast amount of land available for real estate development along both sides of the train route and near its stations. As a result, real estate developers are expected to compete for early land acquisitions to take advantage of the currently lower prices before the train becomes fully operational.
The report also pointed out that improved mobility is a key factor in boosting the tourism sector, enhancing tourism programs within the country, and allowing visitors to explore more destinations during their trips.
