Dubai Residential REIT (DUBAIRESI) by Dubai Holding – Dividend Payout Comparison
Dubai property investors now have a new option to consider: the Dubai Residential REIT (DUBAIRESI) by Dubai Holding. With a strong dividend outlook and the backing of the government-owned entity, this newly listed REIT is drawing interest from investors seeking exposure to Dubai’s thriving residential sector.
In this article, we’ll break down what you need to know about this new Dubai REIT, compare dividend payout of other REITS in Dubai, and whether it deserves a spot in your real estate portfolio.
Let’s take a closer look.
What Is Dubai Residential REIT? (DUBAIRESI)
Listed on May 2025, this government-backed REIT focuses purely on residential leasing.
Key Features:
- Portfolio: Over 35,000 residential units across 21 communities in Dubai
- Largest listed REIT in the GCC by asset value: AED 21.63 billion Gross Asset Value (GAV)
- Dividend Policy: At least 80% of profits distributed semi-annually
- Shariah-Compliant: Structured to comply with Islamic finance principles
IPO Highlights:
- Expected Market Capitalization: Up to AED 14.3 billion ($3.9 billion)
- Offering Size: 1.625 billion units (12.5% of the REIT’s issued capital)
- IPO Subscription Period: May 13 to May 20, 2025
- Share Price: AED 1.10
What Types of Properties are Included in this Dubai REIT?
Dubai Residential REIT Portfolio:
- Premium: Upscale properties in prime locations such as Bluewaters, City Walk, and Nad Al Sheba Villas.
- Community: Mid-to-high-income family-oriented communities like Shorooq and Layan.
- Affordable: Cost-effective housing in areas like Al Khail Gate and International City.
- Corporate Housing: Purpose-built accommodations for corporate and industrial
How does Dubai Residential REIT compare with other REITs in Dubai?
While share price volatility remains beyond investor control, let’s examine dividend payouts from other REITs in Dubai for comparison.
| Dubai REIT | Managed By | # Of Properties | Portfolio | Market Cap (mil) | Targeted Dividend Yield | Annualized Dividend (2025) | Dividend Frequency |
|---|---|---|---|---|---|---|---|
| Emirates REIT (REIT) | Equitativa Group | 10 | Commercial, Education & Retail | 107.97 | NA | 0 | 0 |
| ENBD REIT (ENBDREIT) | Emirates NBD Asset Management | 10 | Commercial, Residential, Education & Retail | 139.92 | 5% | 7.33% | 1-2x year |
| Al Mal Capital REIT (AMCREIT) | Al Mal Capital | 5 | Education | 1213.61 | 7% | NA | NA |
| Dubai Residential REIT (DUBAIRESI) | DHAM REIT Management by Dubai Holdings | 35,000 | Residential | 17680.00 | 7.7% | 6.9% | 2x year |
How does Dubai REITs compare with buying property in Dubai?
Dubai property investors typically choose between two main approaches: buying off plan properties with payment plans to capture capital growth, or buying ready properties that start generating rental income right away.
While such strategies have merit, buying properties directly also pose challenges:
- High Upfront Capital: Cash purchase or 20% down payment
- Long-term Holding: For maximum returns
- Property Management: Requires handling contracts, short term rentals, or local agents
- Vacancy & Repair Risk: Cash flow is affected by tenant turnover or maintenance
- Exit Risk: It may take time to sell
Why Dubai REITs can a Smart Option
REITs addresses many of the challenges above.
| Feature | Dubai REIT Advantage |
|---|---|
| 1. Tax Efficiency | No corporate tax on REIT income and no personal income tax for UAE residents. |
| 3. Diversification | Exposure to thousands of residential units across various segments: premium, affordable, and corporate. |
| 4. Liquidity | Shares are easily bought and sold on the Dubai Financial Market (DFM), unlike physical properties. |
| 5. Low Capital Requirement | Start investing with smaller amounts, no need for 20% down payments like in direct property purchases. |
| 6. Consistent Dividends | REITs like ENBD REIT project annualized yields (~7%) and pay semi-annually. |
| 7. Hassle-Free Ownership | No need to manage tenants, repairs, or lease contracts. Fully passive income stream. |
What Are the Risks of Investing in REITs in Dubai?
| Risk Factor | Explanation |
|---|---|
| Market Volatility | REIT share prices can fluctuate, especially after IPO or during market downturns. |
| Capital Risk | A 30% drop in share price may require holding longer to recover your principal investment. |
| Liquidity Risk | Though more liquid than property, shares can still be affected by market sentiment and volume. |
Should You Invest in Dubai Residential REIT?
If your investment goals include:
- Regular dividend income
- Lower upfront capital
- Exposure to Dubai’s residential real estate market without the burden of direct ownership
- Avoiding the hassle of property management
Then Dubai REITs could be a smart addition to your portfolio.
However, if you prefer:
- Full control over your asset
- Long-term capital appreciation from physical real estate
- Customization or value-adding strategies (renovations, vacation lets)
Then buying property in Dubai directly may better suit your strategy.
Conclusion
Your investment approach should align with your priorities: choose direct ownership for control and long-term wealth building, or invest in a Dubai REIT for convenience and flexibility. Both paths offer exposure to Dubai real estate investment, but serve fundamentally different investor needs.
Disclaimer: Home It Better is not your financial advisor or real estate agent. The article here is for informational purposes only, and should not be used as a substitute for advice from a licensed professional.
