Dubai REIT IPO Expands Real Estate Investment Access

Prime Highlights :

Dubai Holding will list its Dubai Residential REIT in an IPO, the first on the Dubai Financial Market (DFM) in 2025.

It will offer up to $500 million of 1.625 billion units, or 12.5% of total capital.

Key Facts :

Dubai Residential REIT manages 35,700 residential units in 21 master communities worth AED 21.6 billion.

Subscription of the IPO will take place between May 13 to May 20, and listing on the DFM is expected on May 28, 2025.

Important Background :

Dubai Holding announced the initial public offering (IPO) of its Dubai Residential Real Estate Investment Trust (REIT), which will be the new listing on the Dubai Financial Market in 2025. The IPO comprises the sale of 1.625 billion units, or 12.5% of the issued share capital of the REIT. The transaction is forecast to raise up to $500 million and is an excellent beginning for the capital market activity in Dubai this year.

The REIT has a colossal and well-situated portfolio. It consists of over 35,000 residential properties in 21 thriving communities such as City Walk, Bluewaters, Dubai Wharf, and Meydan Heights. With AED 21.6 billion assets, it is the Gulf REIT by size for housing. Its performance has been excellent, with the portfolio achieving a 97% occupancy rate at the end of 2024, from a 93% occupancy rate achieved in 2022. Its like-for-like annual revenues, constant currency basis, increased 11% over the same period.

Supported by Dubai Holding’s deep roots in the development of real estate, the REIT enjoys exposure to quality assets and the ability to generate quality. The REIT also announced an intention to distribute a minimum of 80% of net profit half yearly, after excluding fair value adjustments, in April and September of every year. September 2025 dividend will be the first dividend.

Dubai Residential REIT’s IPO will expose investors to the residential property sector in Dubai. Through listing on the DFM, it will attract a wide cross-section of retail and institutional investors and establish Dubai as a thriving hub of real estate and financial innovation.