4 hr 45 min agoMay. 28, 2025 4:15 pm
Several countries in the Middle East and Arabian Peninsula have experienced sustained economic growth over the past few decades, making real estate in the region increasingly valuable. Yet despite this rising demand, the region has seen relatively few large public REITs. That changed this week with the IPO of Dubai Residential REIT, which surged 14% on its first day of trading—driven by pent-up investor demand.
The REIT holds a diversified portfolio of 35,700 residential units across 21 communities in Dubai, with a gross asset value of approximately $5.9 billion. It is a Shariah-compliant, income-generating, closed-ended real estate investment fund managed by DHAM REIT Management LLC. Notably, it’s also Dubai’s first IPO of the year.
The REIT’s early success highlights investor appetite for exposure to the region’s rapid growth. Dubai is among the fastest-growing economies globally and ranks as the 18th wealthiest city by millionaire population. While the Middle East has not historically been known for public real estate offerings, this IPO could pave the way for more to come.
Bloomberg
