Dubai Residential Reit gains 13.64% on market debut

Vijay Valecha , May 28, 2025, Khaleej TImes

Dubai Residential Reit on Wednesday rose 13.64 per cent at the close of trade after its listing on the Dubai Financial Market (DFM).

The Shariah-compliant income-generating closed-ended real estate investment fund and one of the largest owners and operators of residential real estate in Dubai, listed at Dh1.1 per share, opening trading at Dh1.21, rising to as high as Dh1.31 before paring gains to close the day at Dh1.25. It hit a low of Dh1.20 during the day’s trading.

The listing marks a significant milestone for Dubai’s capital markets, introducing the GCC’s first listed pure-play residential leasing focused Reit and the region’s largest listed Reit with 35,700 residential units under management. It also represents the first Reit to list under the UAE’s updated regulatory framework and the first listing on the DFM in 2025, underscoring Dubai’s position as a leading hub for diversified investment opportunities.  

The initial public offering (IPO) of Dubai Residential Reit raised Dh2.145 billion ($584 million), with overwhelming interest from local, regional, and international investors, reflecting strong confidence in Dubai’s mature residential real estate market. The offering of 1.95 billion units was fully subscribed within minutes of the book opening, resulting in a final offer price set at the top of the indicated range, Dh1.10 per offer unit.

Dubai Residential Reit debuted with a market capitalisation of Dh14.3 billion and a projected gross dividend yield of 7.7 per cent for 2025. In response to exceptional demand, DHAM Reit Management, the fund manager increased the size of the offering from 12.5 per cent to 15.0 per cent of the company’s total issued unit capital. The total gross demand surpassed Dh56 billion, resulting in the issue being oversubscribed 26 times at the final offer price.  The company's offer of a 7.7 per cent dividend yield at its listing price is significantly higher compared to the median dividend yield of Saudi REITs at 6.58 per cent.

Following the listing, DHAM Investments, the selling unitholder, a subsidiary of Dubai Holding, retains a majority stake of 85 per cent in Dubai Residential Reit.

To mark the listing, Malek Al Malek, group chief executive officer of Dubai Holding Asset Management and chairman of the investment committee of DHAM Reit Management LLC, and Nabil Ramadhan, chief strategy and marketing officer at Dubai Holding Asset Management and Chairman of the Board of Dubai Residential Reit, rang the market-opening bell at DFM, accompanied by Helal Al Marri, Chairman of the DFM Board of Directors, Hamed Ali, Chief Executive Officer of DFM and Nasdaq Dubai, along with Amit Kaushal, Group Chief Executive Officer of Dubai Holding and Omar Karim, Group Chief Investment Officer of Dubai Holding.  

Al Marri said: “The successful debut of Dubai Residential Reit on DFM exemplifies our broader efforts to expand access to asset classes that reflect the economic ambitions of Dubai. It speaks to the continued evolution of our capital markets and the strength of investor confidence in our vision. We remain committed to deepening market sophistication and unlocking diversified, Sharia-compliant investment pathways.”

Amit Kaushal said: “The successful listing of Dubai Residential Reit on DFM is a significant milestone, not only for Dubai Holding but for the continued evolution of the Emirate’s capital markets. This achievement reflects our long-standing commitment to unlocking value from strategic assets, supporting the UAE’s vision for economic diversification and advancing Dubai’s position as a leading global hub for investment. We are proud to contribute to shaping the future of real estate investment through innovation, scale and institutional excellence.”

Hamed Ali added: “The listing of Dubai Residential Reit on DFM marks a pivotal moment in our ongoing efforts to diversify investment opportunities and enhance market depth. This successful IPO not only reflects the strength of Dubai’s real estate sector but is a testament to the trust placed in Dubai’s regulatory infrastructure and our ability to deliver efficient, accessible, and forward-looking capital markets.”

Al Malek said: “We are proud to bring this opportunity to a wider investor base and look forward to delivering consistent value to unitholders while contributing to Dubai’s ambition for dynamic, transparent capital markets.”

The Dubai Residential REIT is the most significant real estate investment trust within the GCC, and it's the first pure-play residential leasing-focused trust in the region. "With 35,700 residential units under management, which possess a gross asset value of Dh21.6 billion, it is almost double the combined value of the five largest REITS in the region. Additionally, the property market in Dubai has experienced a significant boost due to an influx of new residents since the onset of the pandemic, resulting in property prices increasing by as much as 70 per cent over the past four years," Vijay Valecha , Chief Investment Officer, Century Financial, told Khaleej Times.

This momentum further reinforces DFM’s status as a dynamic and resilient capital markets platform. As of the date of this announcement, the total market capitalisation of companies listed on DFM reached Dh962.7 billion, with the exchange achieving its highest Average Daily Trading Value (ADTV) in more than a decade, representing a 58 per cent increase over last year.

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