Real estate fund (REIT)
Property income without buying a building
"Earn rental income from global properties without being a landlord."
Avg. yearly return
5–8%
Volatility
Medium
Liquidity
Medium–high (REIT ETF: 1–2 days)
Min. investment
From €50 (REIT ETF)
A Real Estate Investment Trust (REIT) pools money from thousands of investors to buy, manage, and rent out properties — offices, apartments, shopping centres, warehouses, hospitals. By law, REITs must distribute at least 90% of their rental income to shareholders. You receive regular income payments and benefit from property value appreciation, all without ever dealing with tenants or maintenance.
10-year price history
+32% (2015–2024)Starting value = 100 (index)
Indexed to 100 in January 2015. Based on FTSE EPRA/NAREIT Global REIT Index (EUR). 2020 drop reflects COVID-19 impact on commercial property. 2022 decline driven by rising interest rates.
Risks to understand
Interest rate risk
high riskREITs are particularly sensitive to interest rate rises. When rates increase, borrowing costs for property owners rise and REIT valuations typically fall 15–25%. This was clearly seen in 2022.
Property market risk
medium riskEconomic downturns reduce rental income as tenants default or vacate. Office REITs have also faced structural headwinds from remote work trends since 2020.
Liquidity risk
medium riskREIT ETFs can be sold quickly on an exchange. However, some direct real estate funds have lock-up periods of 3–6 months during market stress when many investors try to exit simultaneously.
Tax complexity
medium riskREIT dividends may be taxed differently from regular investment income in some countries. Check your local tax rules — some jurisdictions treat REIT distributions as ordinary income rather than dividend income.
How to invest in this asset
You can invest in real estate through a REIT ETF in the same way as any other fund — through a broker.
Decide between a REIT ETF and a direct property fund
A REIT ETF (traded on a stock exchange) offers full liquidity and diversification. A direct real estate fund invests in physical buildings but may have lock-up periods. For most investors, a REIT ETF is simpler and safer.
Search for UCITS REIT ETFs
Examples: iShares Developed Markets Property Yield UCITS ETF (IWDP), Amundi FTSE EPRA NAREIT Global UCITS ETF (EPRA). Both hold hundreds of properties worldwide.
Check the dividend yield
REITs typically pay 3–5% dividend yield annually. Confirm that dividends are distributed (not just accumulated) if you want regular income.
Consider direct property investment for large amounts
If you have €50,000+, buying a rental apartment directly may offer better returns. However, this requires local knowledge, management time, and significantly higher transaction costs.
Providers and platforms
iShares (BlackRock)
ETF provider · Min. Via broker · FCA, multiple
iShares Developed Markets Property Yield UCITS ETF (IWDP) — diversified global REIT exposure.
Amundi
ETF provider · Min. Via broker · AMF (France)
Europe's largest ETF provider. Offers EPRA NAREIT Global REIT fund at low cost.
Fundrise
Direct real estate platform · Min. $10 · SEC (USA)
US-based platform allowing fractional investment in real estate projects. Not available to all EU residents.
Crowdstreet
Direct real estate platform · Min. $25,000 · SEC (USA)
Commercial real estate marketplace for accredited investors. High minimum but direct property exposure.
Interactive Brokers
Online broker · Min. €0 · FCA, SEC
Best broker for accessing global REIT ETFs. Accepts investors from most countries.
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Find my best option →All information on this page is educational only. Historical data does not guarantee future results. Provider links are not affiliate links — we receive no commission. Always consult a licensed financial advisor before investing.