Dubai Holding has garnered $15 billion in orders for its $584 million initial public offering (IPO) of the Dubai Residential Real Estate Investment Trust (REIT). This strong demand marks a significant indication of investor interest in Dubai’s thriving property market.

The investment firm, owned by Dubai’s ruler, increased the size of its offering earlier this week, experiencing demand for all shares within minutes of opening the books. The listing of Dubai Residential REIT will be the first IPO in the city for the year.

The final price for the Dubai Residential REIT was set at 1.10 dirhams ($0.30) per unit, reaching the upper limit of the marketed range. This pricing reflects a market capitalization of $3.9 billion, as stated in an official release.

This IPO takes place during a time of robust growth in Dubai’s housing market, with property prices climbing as much as 70% over the last four years. The emirate has attracted a surge of new residents since the onset of the coronavirus pandemic, drawn by favorable visa policies and low taxes, which have in turn increased demand for both housing and office spaces.

However, the rapid escalation of property prices has begun to price out many potential buyers, prompting renewed interest in real estate investment trusts—a relatively uncommon investment vehicle in the region. Additionally, some buyers are exploring fractional ownership apps that allow for investments starting at as low as $136.

On Monday, the size of the offering was raised to 1.95 billion units, an increase from the initially planned 1.63 billion, reflecting strong domestic and international demand. This adjustment brings the free float to 15%, up from the original target of 12.5%.

The Dubai Residential REIT will represent the first residential leasing-focused entity of its kind listed in the Gulf Cooperation Council. It boasts a gross asset value of 21.6 billion dirhams, which is nearly double the combined total of the five largest REITs in the region, according to the firm.

Emirates NBD Capital, Morgan Stanley, and Citigroup Inc. are serving as joint global coordinators for the deal, while Abu Dhabi Commercial Bank, Arqaam Capital, and First Abu Dhabi Bank are acting as joint bookrunners.

This listing is part of a broader trend of IPO activity in the Middle East, as various companies continue to pursue public offerings despite global market uncertainties linked to US trade policy. In Saudi Arabia, recent weeks have seen share sales from an airline, a hospital operator, and a cardboard manufacturer.