However, it is possible for individuals to pool resources through a Collective Investment Scheme (CIS) known in capital markets as a Real Estate Investment Trust (REIT).

They carry tremendous benefits to investors including: easy access and ownership in the growing real estate sector; diversification of investments to mitigate against concentration risks; liquidity through tradability in the secondary market ; as well as access to professionally managed portfolios, limited legal liability for the shareholders of a tax-qualified REIT, and a regular income stream for the investor via distributed dividends.

For real estate developers, REITs result in manageable development costs and tax advantages.

REITs therefore present a more suitable finance option for real estate developers.

With these benefits property developers and investors alike need to seriously consider taking up REITS which is a capital markets product that can unlock funding for the real estate sector and support the Government’s agenda of delivering affordable housing units.