Dubai’s first initial public offering (IPO) of 2025, the Dubai Residential REIT, has been priced at Dh1.1 per unit. This pricing establishes an initial market capitalization of Dh14.3 billion and offers a gross dividend yield of 7.7% for the year 2025. The REIT is set to distribute Dh1.1 billion as dividends this year.

The demand for the IPO exceeded Dh56 billion, resulting in an oversubscription of over 26 times at the final offer price. A statement noted that, due to the exceptionally strong demand, the final offer price was set at the top end of the price range, allowing the company to raise Dh2.14 billion through the IPO. The offering received robust interest from both institutional investors and UAE retail participants, prompting an increase in the IPO size from 12.5% to 15%.

Dubai Holding is pleased with the outcome, as it aligns with their expectations. Amit Kaushal, Group CEO of Dubai Holding, remarked that the significant demand is a strong endorsement of the company’s strategic vision and the quality of their residential leasing portfolio. This portfolio has been meticulously developed over more than two decades to cater to the diverse needs of Dubai’s population. The new Dubai REIT includes 21 communities, which are highly sought after by tenants.

Kaushal further emphasized that this investor confidence highlights not only the resilience of the UAE’s economic vision and Dubai’s long-term growth potential but also showcases the increasing depth and global appeal of its capital markets. He expressed confidence in the Dubai Residential REIT’s ability to deliver sustainable, long-term performance, reaffirming their commitment to shaping the future of urban living in Dubai and enhancing the city’s status as a global investment and innovation hub.

Investors can expect to receive dividend payments twice a year, beginning in September 2025. The dividend for 2025 will be the higher of 80% of the profit for the period before any changes in the fair value of investment properties, calculated for the financial year ending December 31, 2025. For the years 2026 and beyond, Dubai Residential REIT plans to distribute at least 80% of the profit before changes in fair value for each accounting period.