Dubai Holdings’ $584 million REIT surges 10% in IPO debut

Dubai Holding’s $584 million residential real estate investment trust jumped 10% on its trading debut today, reflecting the strength of the emirate’s property market in the city’s first IPO of the year.

The listing on the Dubai Financial Market, which was oversubscribed last week within minutes of its launch, values the trust at approximately $3.9 billion, Bloomberg reports.

Backed by the investment arm of Dubai’s ruling family, the Dubai Residential REIT offering was managed by Citigroup Global Markets Limited, Emirates NBD Capital and Morgan Stanley.

Dubai’s residential market continues to rally, buoyed by the inflow of wealthy expatriates drawn by relaxed visa policies and low taxation.