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The REIT tracking Dubai’s residential property sector logged a solid 1Q despite headwinds facing the sector since the war began. Dubai Residential Real Estate Investment Trust’s (REIT) revenues rose 8.4% y-o-y in the three months to March as Dubai’s rental market stayed tight, according to its results statement (pdf). Average portfolio occupancy reached 98.9%, while average revenue per leased sq ft climbed 7.4%.
Management struck an upbeat tone: The quarter showed the “underlying strength of Dubai’s residential market,” Managing Director Ahmed Al Suwaidi said, as the city logged 170k lease contracts worth AED 15.1 bn and AED 134.8 bn of home sales across 44.4k transactions. This broadly mirrors what analysts told us earlier this month: March activity remained solid by historical standards despite softer pricing, suggesting the market may be cooling rather than cracking, with slower growth rather than an outright correction pencilled in for 2026.
Gross asset value rose to AED 23.8 bn from AED 23.5 bn at year-end, while tenant retention improved to 98.0%, suggesting residents are choosing to stay put despite higher rents.
But it has been a rougher ride in the market: The REIT’s shares have slipped around 13.5% since the war began, falling from AED 1.33 to AED 1.15, suggesting investors still view real estate through a risk-averse lens. As we previously noted, real estate equities were among the hardest hit during a war-induced selloff earlier in March, with both ADX and DFM property indices shedding roughly 27% in March, though the DFM real estate gauge has since rebounded 5.6% this month.
Growth is still in the pipeline: Garden View Villas were added during the quarter, while Jebel Ali Village is due to add another 220 units in 2Q 2026. Together, the two projects are expected to generate AED 70-80 mn in additional revenue once stabilized. The REIT is also evaluating further prospects within Dubai Holding’s pipeline, including Lantana Hills in Dubai Science Park, The Acres in Dubailand, and a potential expansion at Dubai Wharf.
