Dubai Holding has officially announced the start of the subscription period for its new real estate investment fund, “Dubai Residential REIT,” giving both individual and institutional investors an opportunity to invest in Dubai’s flourishing residential market.

The offering, managed by Dubai Holding’s investment arm, covers 1.625 billion units, equivalent to 12.5% of the fund’s capital. Each unit is priced within a range of AED 1.07 to AED 1.10. The final price will be determined after a book-building process, with shares expected to begin trading on the Dubai Financial Market by the end of May 2025.

With an estimated market capitalization between AED 13.9 billion and AED 14.3 billion upon listing, this REIT is set to become the largest of its kind in the GCC dedicated solely to residential properties. Currently, the fund manages a vast portfolio of 35,700 residential units, strategically located across key districts in Dubai, offering a mix of family and individual housing options catering to various income levels.

The IPO is divided into two main tranches:

• 10% of the shares are reserved for UAE-based retail investors.
• 90% are allocated to qualified institutional investors from outside the United States, in compliance with international financial regulations.

Investors in the retail tranche are guaranteed a minimum allocation of 2,000 units, subject to demand and availability. The subscription period runs from May 13 to May 20, with the final offer price being announced on May 21.

Looking ahead, Dubai Residential REIT plans to distribute dividends on a semi-annual basis, with the first payments scheduled for September 2025 and April 2026. The fund anticipates an initial dividend yield ranging between 7.7% and 7.9%, making it an attractive proposition for investors seeking steady income streams.

Furthermore, certain proceeds from the IPO will be directed towards price stabilization strategies, ensuring a smooth post-listing performance. An independent firm has been appointed to manage these stabilization activities in accordance with UAE market regulations.

Dubai Holding’s move comes at a time of heightened interest in Dubai’s residential property market, driven by strong demand, population growth, and the city’s ongoing urban development. Through this listing, the group aims to offer a transparent, regulated, and profitable investment vehicle, while strengthening its leadership in real estate asset management.

As the subscription window opens, investor enthusiasm reflects confidence in the city’s long-term economic prospects and the stability of its real estate sector.