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UAE's Etihad Rail to create new commercial hubs across the country
Commercial plots have already registered up to 15% appreciation following the announcement of station locations
- PUBLISHED: Wed 13 Aug 2025, 11:06 AM
Etihad Rail isn’t a train, but an economic rewire of the UAE which will create new commercial hubs around strategic stations in the country, say real industry executives.
“People are talking about passengers. I’m looking at logistics, B2B supply chains, and the decentralisation of corporate ecosystems. This will reduce travel time, resulting in increased meeting density and higher transaction volume. A salesperson based in Sharjah can close deals in Abu Dhabi and Dubai without losing 6 hours to traffic. That raises their output. Multiply that by the commercial class, and you start seeing a real GDP impact,” said Firas Al Msaddi, CEO of fäm Properties.
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“When you increase the velocity of human capital, you don’t just improve lifestyle, you accelerate commerce,” he added.
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Etihad Rail’s 900 km network will extend across the UAE, from Ghuwaifat to Fujairah. The railway links the principal centres of trade, industry, manufacturing, production, logistics, population and all the major import and export points of the UAE. Etihad Rail is set to be one of the most transformative infrastructure projects in the UAE, directly impacting the commercial real estate sector.
“Etihad Rail isn’t a train. It’s an economic rewire of the UAE. It will redistribute demand, compress inefficiencies, and unlock new zones of living, commerce, and value creation. Those who still price real estate based on maps instead of travel-time analytics will lose money. Those who study station locations the way they used to study masterplans will build generational wealth. This is how the next wave of real estate winners will be made,” said the CEO of fäm Properties.
Mark Castley, CEO of real estate, Huspy, sees new commercial hubs emerge around strategic stations of Etihad Rail, with developers increasingly looking at integrated rail-industrial ecosystems.
“The combination of commercial hubs, residential centres and rail connectivity is an indicator of the future-centric vision the leaders of the UAE have for the nation. For forward-looking investors, the window is now, before pricing fully reflects the long-term potential,” he said.
Values rising
Historically, improved transport infrastructure has driven steady capital appreciation, and Castley expects the same here, with certain areas poised for above-average growth as connectivity improves.
Castley expects commercial property values near Etihad Rail stations to appreciate between 25 per cent and 30 per cent over the next 5 to 7 years, with the most significant gains concentrated in industrial and logistics-zoned assets within a 3 to 5 km radius of key freight terminals.
“Initial pricing trends already show early momentum in some logistics corridors, commercial plots have registered 10-15 per cent appreciation year-on-year following the announcement of station locations,” he said.
Our commercial team is advising investors to identify these “future hotspots” now, before the uplift is priced in. Over time, we expect sustained rental growth and higher occupancy rates, making these locations some of the most attractive for long-term capital appreciation in the UAE’s commercial property market.
It is expected that free zones with multimodal access such as Dubai Industrial City, Khalifa Industrial Zone (Kizad), and Fujairah’s logistics belt, are likely to outperform, driven by rising demand from e-commerce, third-party logistics, and manufacturing firms optimising for rail-enabled supply chains
“In the lead-up to full operations, we also anticipate developers launching new master communities along the route, while owners of existing properties in these areas may see higher resale prices and rental yields,” he added.
