Dubai Residential REIT IPO Oversubscribed Over 26 Times, Raising AED 2.14 Billion

Dubai : Residential REIT IPO Oversubscribed Over 26 Times, Raising AED 2.14 Billion Dubai’s first IPO of 2025, the Dubai Residential REIT, has witnessed an overwhelming investor response, being oversubscribed more than 26 times. The final offer price was set at the top end of the range at AED 1.10 per unit, resulting in a total capital raise of AED 2.14 billion and an initial market capitalization of AED 14.3 billion .

The offering attracted substantial interest from both institutional and retail investors, prompting an increase in the IPO size from the initially planned 12.5% to 15% of the issued unit capital . This surge in demand underscores investor confidence in Dubai Holding’s strategic vision and the strength of its residential leasing portfolio.

The REIT’s portfolio comprises 21 communities across Dubai, encompassing over 35,700 residential units in sought-after locations such as Bluewaters and City Walk . The REIT is Shariah-compliant, certified by both internal and Emirates NBD Shariah Supervisory Committees, enhancing its appeal to a broad investor base .

Investors can anticipate semi-annual dividend payments starting in September 2025. For the financial year ending December 31, 2025, the REIT intends to distribute the higher of AED 1.1 billion or 80% of its profit before changes in the fair value of investment property . From 2026 onwards, the REIT plans to distribute at least 80% of such profits annually.

Trading of Dubai Residential REIT units on the Dubai Financial Market is expected to commence on or around May 28, 2025 .