Dubai Holding announced today the successful completion of the book building and subscription process for the Dubai Residential REIT IPO on the Dubai Financial Market (DFM) and has set the final offer price at AED1.10 per offer unit. This implies a market capitalization upon listing of AED14.3 billion and a gross dividend yield of 7.7 percent for 2025.
The IPOÂ attracted strong demand across both institutional and UAE retail tranches, prompting the fund manager to increase the size of the offering from 12.5 percent to 15 percent of Dubai Residential REIT’s total issued unit capital.
The total gross demand reached over AED56 billion ($15 billion), resulting in an overall oversubscription of over 26 times at the final offer price. Reflecting the exceptionally strong demand, the final offer price was set at the top end of the price range, enabling the company to raise $584 million through the IPO.
Trading on DFM to begin on May 28
The Dubai Residential REIT IPO comprised a total of 1,950,000,000 units, representing 15 percent of the REIT’s issued unit capital. Upon listing, the selling unitholder, DHAM Investments LLC, will continue to own a majority 85 percent stake in Dubai Residential REIT.
Dubai Holding said investors who subscribed through the UAE Retail Offering will receive an SMS confirmation of their respective allocation on May 26, with refunds due to commence from the same date.
“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, which has been carefully developed and managed over more than two decades to meet the evolving needs of Dubai’s diverse population,” stated Amit Kaushal, group CEO of Dubai Holding.
He added, “This investor confidence speaks not only to the resilience of the UAE’s economic vision and Dubai’s long-term growth trajectory, but also highlights the increasing depth, maturity and global appeal of its capital markets.”
The completion of the offering and admission of units to trading on the DFM is expected to take place on or around May 28, under the ticker symbol “DUBAIRESI” and ISIN “AEE01657D252”, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of admission to listing and trading on DFM.
Semi-annual dividend distribution policy
Following the IPO, Dubai Residential REIT intends to adopt a semi-annual dividend distribution policy, making payments in April and September of each year, starting from September 2025. The REIT announced that the sum of its first two dividend payments, expected to be made in September 2025 and April 2026, will be the higher of AED1,100 million and an amount equal to 80 percent of profit.
For the financial results of 2026 and thereafter, Dubai Residential REIT intends to distribute at least 80 percent of profit.
“The strong investor demand clearly signals a growing appetite for stable, income-generating assets in Dubai’s vibrant and mature real estate sector, the core principle upon which the REIT was established. With a diversified portfolio comprising 35,700 residential units across multiple segments and supported by near-full occupancy and high retention rates, Dubai Residential has consistently demonstrated its ability to generate sustainable, long-term returns. This robust performance firmly positions Dubai Residential REIT as the benchmark for residential leasing in Dubai, reinforcing its role in shaping the future of urban living in the city,” added Malek Al Malek, group CEO of Dubai Holding Asset Management and chairman of the investment committee of DHAM REIT Management LLC.
