Bayut Real Estate Company has predicted that the high-speed train between Abu Dhabi and Dubai project will have a significant positive impact on the UAE economy, ushering in a transformative shift in real estate projects expected to be launched along the train route. This will further contribute to the country’s real estate boom over the coming decades.
Key Numbers:
- 30 min – Travel time between Abu Dhabi and Dubai.
- 350 km/h – Train’s top speed.
- AED 1T – Projected real estate transactions.
- AED 145B – Expected GDP contribution over 50 years.
The high-speed train project connecting the capital, Abu Dhabi, with the emirate of Dubai was officially announced during a ceremony organized by Etihad Rail at the Al Fayah station on Thursday, January 23, 2025.
According to a recent report by Bayut, this project will further boost the market, which is currently experiencing record levels in transactions and sales. Additionally, it will facilitate a 70% increase in the value of real estate transactions in Dubai, 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 managing the national railway network with the highest levels of efficiency, quality, and reliability.
The high-speed train will enable residents and visitors alike to travel easily between Abu Dhabi and Dubai in no more than 30 minutes, reaching a maximum speed of 350 km/h, while passing through key strategic destinations and major tourist attractions.
The high-speed train between Abu Dhabi and Dubai project is expected to contribute up to AED 145 billion to the UAE’s GDP over the next five decades. Additionally, it will have highly positive impacts across economic, tourism, social, and real estate sectors, further solidifying the UAE’s position among leading nations in sustainable and modern railway transportation, thanks to its speed, efficiency, and safety in travel.
Urban Expansion
Bayut explained that the high-speed train between Abu Dhabi and Dubai will stimulate urban expansion and lead to the development of new residential and commercial cities. This project will make these areas more attractive for living, working, and launching new investments in real estate, healthcare, education, entertainment, and all associated services. As a result, it is expected to attract substantial foreign investments as an indirect economic impact of the project in the medium and long term.
Bayut also stated that residential areas near the high-speed train stations will witness high demand for both housing and rentals, as well as for business activities. Gradually, horizontal expansion will extend to more remote residential areas along the train’s route.
New Developable Lands
The report highlighted that the high-speed train project will introduce a vast supply of developable land along both sides of the train’s route and near its stations. As a result, real estate developers are expected to compete to acquire these lands early to take advantage of their currently low prices, compared to their expected increase after the train becomes fully operational.
The report also noted that improved mobility is one of the key factors in boosting the tourism sector. It will enhance tourism programs within the country and allow visitors to explore more destinations during their trips.