Real estate has always been one of the most popular ways Filipinos build wealth. But let’s be honest: not everyone has millions of pesos to buy property, manage tenants, or deal with the hassles of land ownership. Thankfully, there’s now a simpler and more affordable way to invest in real estate in the Philippines: REITs.
If you’ve heard the term but don’t quite understand how it works, this guide will break it down in simple terms so you can decide if it’s the right investment for you.
What Are REITs?
REIT stands for Real Estate Investment Trust. It’s a company that owns and manages income-generating properties—like malls, office buildings, hotels, or even warehouses.
Instead of buying property yourself, you can buy shares of a REIT listed in the stock market. By doing so, you indirectly own part of these properties and earn a share of the income they generate.
Think of it as “real estate investing made simple,” where you don’t need to worry about repairs, tenants, or legal documents.
Why Invest in REITs?
Here are the main benefits that make REITs attractive to Filipinos:
- Affordable Entry Point – You can start with just a few thousand pesos by buying REIT shares on the Philippine Stock Exchange (PSE).
- Passive Income – REITs are required by law to distribute at least 90% of their earnings as dividends. That means you get regular cash payouts.
- Diversification – Instead of investing in one property, your money is spread across multiple buildings and projects.
- Liquidity – Unlike physical property, you can sell your REIT shares anytime in the stock market.
- Professional Management – Properties are managed by experts, so you don’t have to worry about the nitty-gritty.
Risks of REIT Investing
Of course, like any investment, REITs also come with risks:
- Market Fluctuations – Since REITs are traded in the stock market, their share prices go up and down.
- Economic Conditions – If businesses close or demand for office/mall space drops, rental income may decline.
- Concentration Risk – Some REITs focus heavily on one type of property (e.g., offices), so they may be more exposed to downturns in that sector.
The key is to research before investing and avoid putting all your money into a single REIT.
How to Invest in REITs in the Philippines
Here’s a step-by-step guide:
- Open a Stock Trading Account
– You’ll need a broker account with platforms like COL Financial, BDO Securities, FirstMetroSec, or similar. - Choose Your REIT
– As of 2025, several REITs are listed on the PSE, including:- AREIT (Ayala)
- DDMP REIT (DoubleDragon)
- Filinvest REIT (FILRT)
- MREIT (Megaworld)
- RL Commercial REIT (RCR)
- VistaREIT (VREIT)
- Citicore Energy REIT (CREIT) – a renewable energy-focused REIT
- Buy Shares
– Just like buying stocks, search for the REIT’s stock symbol in your broker platform and place an order. - Earn Dividends
– Sit back and wait for dividend payouts, which usually happen quarterly or semi-annually. - Monitor Performance
– Keep an eye on share prices, dividend yields, and the property portfolio of your chosen REIT.
Are REITs Good for Beginners?
Yes, REITs are a beginner-friendly way to start investing. They give you access to the lucrative real estate market without needing huge capital. Plus, the regular dividends make them ideal for those who want passive income.
However, beginners should treat REITs as part of a diversified portfolio. Don’t put all your savings in REITs—combine them with other investments like Pag-IBIG MP2, mutual funds, or stocks.
Blogger’s Corner
For many Filipinos, real estate has always been seen as a symbol of wealth. But now, thanks to REITs, you don’t need to be a millionaire to join the game. Even with ₱1,000 or ₱5,000, you can already get exposure to premium office towers, malls, and even energy projects.
If you’re looking for passive income and long-term growth, REITs are worth adding to your portfolio. Just remember: research is your best friend, and diversification is your shield.