What Is a REIT, and How Is It Different From Buying Property?
We wrote this article in 2024 and fully revised it in November 2026. It is not investment advice.
A REIT is a company that owns, and usually operates, income-producing property.
If you invest in a REIT, you do not buy a home. You buy a share in a property portfolio.
In short
- You buy a security, not a property.
- Most income is paid out as dividends, but this is not guaranteed.
- Values can fall, so we removed the old “high return” claim.
How does it work?
The US Securities and Exchange Commission explains that a REIT earns income from offices, apartments, warehouses or other property. It passes most of that income to investors as dividends.
Listed REITs are bought and sold through a broker. Non-traded REITs are harder to sell and can carry high fees.
How is it different from a home?
- Use: you cannot live or holiday in a REIT.
- Decisions: you do not choose the properties or the tenants.
- Selling: a listed REIT is usually easier to sell than a home, but its price moves.
REITs in the UAE
Dubai Residential REIT, part of Dubai Holding, listed on the Dubai Financial Market in 2025 with over 35,000 homes. A developer’s overview says Emirates REIT and ENBD REIT are listed on Nasdaq Dubai. The current prospectus gives the exact picture for each.
Risks
- Property values can fall.
- Empty properties can reduce dividends.
- Rising interest rates can increase borrowing costs.
- Thinly traded units can be hard to sell at a good price.
We do not promise returns, and we do not arrange REIT investments. Before investing, ask a bank or licensed adviser, and a tax adviser about tax.
Thinking about your own property?
If you would rather own a home, tell us how you would use it. That is where we can help.
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Sources: U.S. SEC, Investor.gov: Real Estate Investment Trusts; Zawya: Dubai Residential REIT listing; Bhomes: How do REITs work in the UAE property market (developer’s overview).
