Dubai Holding Upsizes REIT IPO to $584M Amid Surging Investor Demand

The move marks a significant development in Dubai’s capital markets and reflects growing investor appetite for income-generating real estate assets in one of the world’s hottest property markets.

Strong Demand Fuels Upsizing

Dubai Holding Asset Management (DHAM), the real estate arm of Dubai Holding, originally planned to offer 1.29 billion units in the IPO but has now increased that number to 1.67 billion units. This represents 30% of the total issued share capital of the REIT, up from the initially proposed 24.99%.

The offering price remains at AED 1.37 per unit, which implies a market capitalization of AED 7.2 billion ($1.96 billion) for the REIT at the time of listing.

“The decision to upsize the offering reflects the strong interest received from a wide base of investors,” said Huda Buhumaid, Chief Marketing Officer at Dubai Holding, in a statement. “It demonstrates confidence in Dubai Holding Asset Management’s robust portfolio and in the long-term outlook of Dubai’s residential real estate market.”

A Unique Investment Opportunity

Dubai Residential REIT will become the UAE’s first listed REIT focused entirely on residential rental properties, and it will list on the Dubai Financial Market (DFM). The REIT will initially consist of 13 residential communities comprising more than 2,500 units—primarily mid-market and affordable housing spread across strategic locations like Remraam, Layan, and Ghoroob.

With a high occupancy rate of 99% as of December 2024, the REIT aims to deliver stable rental income, appealing particularly to income-focused institutional and retail investors.

The properties included in the REIT have historically yielded an average gross rental return of 6.8%, positioning it as a compelling option amid ongoing global interest rate fluctuations and economic uncertainty.

Institutional and Retail Investors Welcome

The offering is divided into two tranches: one for qualified institutional investors and one for retail investors in the UAE. The subscription window will close on May 23, 2025, and shares are expected to commence trading on or around May 30, 2025.

DHAM will retain a 70% stake post-IPO, ensuring long-term alignment with new shareholders.

Strengthening Dubai's REIT Market

The upsizing of the Dubai Residential REIT IPO marks a milestone in the UAE’s maturing real estate investment landscape. While Dubai has seen REIT listings before—such as Emirates REIT—the focus has predominantly been on commercial and mixed-use properties. Dubai Residential REIT’s exclusive focus on residential income-producing assets fills a key gap in the market.

“The listing supports the Dubai Financial Market’s broader strategy to diversify its offerings and deepen the capital markets,” said a DFM spokesperson. “It’s a major boost for the REIT sector in the UAE.”

Dubai’s real estate sector continues to show strong performance in 2025, with residential rents and sale prices rising due to surging demand and limited supply. Dubai Holding’s move comes amid this bullish backdrop, and the REIT structure is expected to provide both stable yields and potential for capital appreciation.

Analysts believe the IPO will likely be oversubscribed, given the credibility of Dubai Holding and the high occupancy levels of the portfolio.

Dubai Holding’s decision to raise the size of the IPO also sends a strong signal about the increasing institutionalization of the UAE’s real estate sector—a trend that aligns with global capital flows seeking stable, yield-generating assets.