Indian expatriates in Abu Dhabi have received a jolt after property owners have hiked rents in anticipation of the Etihad Rail project. This comes after the announcement regarding the launch of Etihad Rail, a high-speed rail that takes just 50 minutes to reach Dubai from Abu Dhabi, which caused a flutter in the property market.
According to real estate developers, the high-speed train could help boost property values by 30 per cent along the route. The effect is already evident on the group, according to reports.
Indian expatriates complain that the rent has been hiked from five to 25 per cent. Property owners have already notified tenants about these demands, and the new rates will come into effect upon renewal of rental agreements. Those who refuse to pay the increased rent are being asked to vacate their flats.
Many are in a fix as they are forced to pay an even higher amount than their current rent if they decide to shift. The situation is not just in the city center but in other areas of Abu Dhabi, including Musaffah Shabiya, a residential hub for Indians; a two-bedroom flat costs 20% more.
The tightening of laws against multiple families residing in a single flat has also contributed to the rent hike, as demand for flats and villas has increased.
Property boom
Now that Etihad Rail is set to become operational in 2026, which will connect 11 cities from Fujairah to the Saudi border, experts believe land owners are bracing for a windfall. While people are holding on to plots anticipating higher prices, developers are scouting sites for housing, retail, and logistics projects, according to Gulf News.
The report quoted Imran Farooq of Samana Developers, who claimed that the rail line is a “game-changer for urban expansion,” which will help property values in key locations jump 20–30% within five years.