Dubai Holding Increases Residential REIT IPO to 15% Amid Investor Demand

Dubai Holding has officially increased its Residential REIT initial public offering (IPO), raising the offering from the previously planned 12.5% to 15% of the fund’s total issued units. This strategic decision reflects the overwhelming demand received from both local and international investors, signaling a high level of trust in the resilience and long-term potential of Dubai’s residential property sector.

Real Estate Investment Trust, or REIT, is a regulated investment vehicle that allows investors earn passive income by buying fund units in income-generating properties, without owning or managing real estate directly. The offering is being managed by DHAM REIT Management LLC, a fully owned subsidiary of Dubai Holding, which increased the offering in response to strong investor demand, making REITs a more accessible and professionally managed way to invest in Dubai’s growing residential real estate market.

Why It’s Worth Your Attention

The expanded Dubai Holding Residential REIT IPO provides a flexible way to access Dubai’s property market, offering regulated, dividend-yielding returns, an ideal complement to direct property ownership for diversified, passive income.

Dubai Holding Residential REIT IPO: Structure, Pricing, and Investor Access

The Dubai Holding Residential REIT IPO has set its final offer price at AED 1.10 per unit, the top end of the previously indicated price range. This pricing decision was driven by substantial investor interest, with the IPO being oversubscribed more than 26 times and attracting total demand exceeding AED 56 billion.

The offering comprised 1.95 billion units, and raised AED 2.145 billion in gross proceeds. This implies a market capitalization of AED 14.3 billion upon listing.

IPO Structure

Tranche 1: Retail Investors (UAE Residents & Nationals)

• Allocated units: 162.5 million
• Eligibility: Investors holding a DFM-issued National Investor Number (NIN)
• Minimum guaranteed allocation: 2,000 units (subject to terms)

Tranche 2: Qualified Institutional Investors

• Increased units: From 1.4625 billion to 1.7875 billion
• Eligibility: Institutional investors meeting regulatory criteria

When Will Dubai Residential REIT List and Pay Dividends?

The Dubai Holding Residential REIT IPO was open for subscription from 13 to 20 May 2025. On 21 May, the final offer price was announced. The listing on the Dubai Financial Market (DFM) is expected around 28 May 2025, subject to regulatory approvals.

Following its listing, the REIT will adopt a semi-annual dividend distribution policy, with payouts scheduled for April and September each year. The first dividend is anticipated in September 2025, followed by the second in April 2026.

The fund's portfolio comprises over 35,700 residential units spread across 21 communities in Dubai, including well-known developments such as City Walk, Bluewaters, Remraam, Layan, and Nad Al Sheba Villas, collectively serving more than 140,000 residents.

What If You Missed the REIT IPO Subscription?

Even if you didn’t apply during the subscription period, you can still invest in the Dubai Residential REIT once it is officially listed on the Dubai Financial Market (DFM).

Steps You Can Take: 

• Ensure you have a National Investor Number (NIN) issued by DFM.
• Open a trading account with a licensed UAE brokerage, if you haven’t already.
• Monitor the REIT’s listing on DFM (under its assigned ticker symbol, to be confirmed).
• Start buying units directly through your brokerage platform once trading begins.

This allows you to invest at the market price, which will reflect real-time supply and demand, rather than the fixed IPO offer price.