Dubai Holding has successfully finalized the book building and subscription process for the initial public offering (IPO) of Dubai Residential REIT, setting the final offer price at AED 1.10 per Offer Unit. This move marks a significant milestone in the Dubai real estate sector, with the Dubai Residential REIT IPO price reflecting a robust valuation of AED 14.3 billion ($3.9 billion) upon listing, alongside a projected gross dividend yield of 7.7 percent for 2025.
Strong investor interest characterized the offering, which spanned both institutional and UAE retail segments. As a result, the Fund Manager decided to expand the offering’s size from 12.5 percent to 15 percent of the total issued unit capital of Dubai Residential REIT.
Exceptional Demand for Dubai Residential REIT
The overall gross demand reached an impressive AED 56 billion ($15 billion), leading to an oversubscription exceeding 26 times at the final offer price. The heightened interest prompted the setting of the final offer price at the upper end of the pricing spectrum, allowing Dubai Residential REIT to raise AED 2.145 billion ($584 million) through this IPO.
Amit Kaushal, Group Chief Executive Officer of Dubai Holding, remarked, “The significant demand for the initial public offering of Dubai Residential REIT from both local and international investors is a powerful endorsement of Dubai Holding’s strategic vision and the strength of our residential leasing portfolio.” He highlighted that this portfolio had been developed over more than 20 years to adapt to the needs of Dubai’s diverse population. Kaushal also noted that the confidence shown by investors underscores the resilience of the UAE’s economic vision and Dubai’s long-term growth trajectory.
Future Prospects and Stability
Malek Al Malek, Group Chief Executive Officer of Dubai Holding Asset Management and Chairman of the Investment Committee of DHAM REIT Management LLC, added, “The strong investor demand clearly signals a growing appetite for stable, income-generating assets in Dubai’s vibrant and mature real estate sector.” He pointed out that Dubai Residential REIT’s diversified portfolio, which includes 35,700 residential units and enjoys near-full occupancy rates, has been pivotal in its ability to deliver sustainable, long-term returns.
The offering consisted of a total of 1,950,000,000 units, representing the 15 percent stake offered by DHAM Investments LLC in Dubai Residential REIT. Post-listing, the selling unitholder will maintain an 85 percent majority stake in the REIT.
Upcoming Distribution and Trading Timeline
Investors who subscribed through the UAE retail offering will receive SMS confirmations of their respective allocations on May 26, 2025, with refunds to begin on the same day. The completion of the offering and the subsequent admission of units to trading on the Dubai Financial Market (DFM) is projected to occur around May 28.
Looking ahead, Dubai Residential REIT aims to implement a semi-annual dividend distribution policy, slated to commence in September 2025. The REIT has announced that the total of its first two dividends—expected in September 2025 and April 2026—will equal the greater of AED 1.1 billion or 80 percent of profits before alterations in investment property valuation for the fiscal year ending December 31, 2025.