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🏙️ Want to Invest in Real Estate Without Millions? Start with REITs
Learn how REITs work in the Philippines, their pros and cons, and how to start investing in real estate with just ₱1,000. Ideal for first-time investors.
Marianne Lim
June 23, 2025
Real estate has long been seen as the holy grail of investing. But, let’s be honest, most of us can’t afford it just yet.
Enter: REITs, or Real Estate Investment Trusts—a way for regular investors (like you and me) to earn from real estate without needing millions.
Let’s walk through what REITs are, why they matter, and whether they deserve a spot in your portfolio.
In today’s edition, we’ll go over:
What a REIT is
What makes it different from other investments
REITs examples and where to invest in REITs
How to research the right REIT for you
TLDR;
The Bottom Line
REITs let you invest in real estate with as little as ₱1,000, offering passive income through dividends without owning physical property.
Compared to stocks or time deposits, REITs offer higher dividend yields (4%–6%), liquidity, and diversified exposure to malls, offices, and hotels.
Not all REITs are equal. Do your research on property mix, sponsor quality, and dividend history before investing.
The content
What is a REIT?
A REIT (Real Estate Investment Trust) is a company that owns and operates income-generating properties like malls, offices, hotels, warehouses, and hospitals. When you invest in a REIT, you're essentially buying shares in a property portfolio.
Think of it as real estate investing made digital. No need to buy, rent, or manage the property yourself.
REITs are legally required to pay 90% of their profits as dividends. This is why they’re such strong income-generating tools.
How a REIT Works (Source: PSE)
What Makes REITs Different from Other Investments?
Unlike stocks, REITs generate income mainly through dividends, not capital gains. As a comparison, Ayala REIT has an average dividend yield of ~5.7% compared to Ayala Land, Inc. (ALI)’s ~2.6%.
Unlike direct real estate, REITs are liquid. You can buy and sell them like any stock on the PSE.
Unlike time deposits or bonds, REITs have the potential for higher long-term returns, though they carry more risk.
In short: REITs combine the cash flow of real estate with the convenience of stocks.
Examples of REITs in the Philippines
Here are a few publicly listed REITs on the Philippine Stock Exchange (PSE):
AREIT (Ayala REIT) – Offices in Makati, BGC, Cebu
DDMPR (DoubleDragon Meridian Park REIT) – Commercial properties in Bay Area, Pasay
FILRT (Filinvest REIT) – Office buildings in Alabang and Cebu
MREIT (Megaworld REIT) – Offices across McKinley Hill, Eastwood, Iloilo
Each REIT focuses on different sectors and locations. Above samples are not comprehensive. Check each separately.
Actionable Tips for You
Where Can You Invest in REITs?
REITs are traded on the Philippine Stock Exchange (PSE)—so you’ll need:
A brokerage account: COL Financial, BDO Securities & FirstMetroSec
Capital to start: Even ₱1,000–₱5,000 is enough to buy shares
How to Research & Choose the Right REIT for You
Check Dividend Yield & Payout History: Look for consistent, preferably growing quarterly dividends.
Understand Asset Type & Location: Offices may drop in recessions; energy and retail have different risk cycles. Choose based on your risk tolerance and belief in the sector.
Analyze Financial Health: Check their financial statements via PSE Edge.
Sponsor Quality & Growth Strategy: Developers with clear property expansion plans signal long-term value