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7/3/25, 9:32 AM Real Estate Investment Trusts Are Moving To Centre Stage
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Real Estate Investment Trusts Are Moving To Centre Stage
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2025-07-02 02:31:33
(MENAFN- Khaleej Times)
The UAE Real Estate Investment Trusts (Reits) have a promising outlook as it offer investors a way to tap into prime real estate without the hassles of direct ownership, says
an expert.
Madhav Dhar, Founding Member, and COO of ZāZEN Properties, said the emirate's Reit market received a big boost from the recent initial public offering launched by Dubai
Holding to raise Dh14.3 billion, offering up to 8% gross yield.
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“The UAE Real Estate Investment Trusts (Reits) are moving to centre stage. Take Dubai Residential Reit's blockbuster debut on May 28, 2025, it launched with a market cap
of Dh14.3 billion and an expected gross yield of 7-8%. It was oversubscribed 26 times on demand, exceeding Dh56 billion, proving investors are seeing real value here, and
that made a spectacular debut,” Dhar told BTR.
“This isn't just about yield, though the 7-8% return is certainly helping; it's about embracing transparency, regulatory maturity, and liquidity in a market that's ready to evolve
and expand in the future,” he said.“This is more than just a one-off success; it's the beginning of a narrative shift. We're moving away from discretionary, high-risk, off-plan bets
to structured, Shariah-compliant, long-term income strategies. The UAE Reits now offer investors a way to tap into prime real estate without the hassles of direct ownership.
They're delivering yield, governance, and fluidity, and doing it with a level of sophistication that sets them apart in the region,” he explained.
To a question about the prospects of Reits in the region, he said GCC Reit assets under management are forecast at around $11.2 billion in 2025 and expected to reach $16.7
billion by 2030, projecting a robust 8.2% compound aggregate growth rate.“These numbers highlight a market that's taking shape, but still has real runway ahead. The UAE,
and specifically Dubai, remains the central hub within that evolution,” he said.
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