REITs vs. Physical Property: Which Investment Reigns for Retail and HNI Investors?

• REITs offer steady returns (10-14% annually) from diversified, professionally managed commercial assets, providing income stability and lower risk.
• Physical property can yield significant gains in select high-growth locations, with potential for strong capital appreciation and rental income, but requires careful asset selection and timing.
• Liquidity is a key differentiator: REITs can be bought/sold on exchanges quickly, while physical property sales involve lengthy processes and higher transaction costs.
• REITs suit young professionals and retirees seeking smaller ticket sizes, steady income, and high liquidity without operational burdens.
• HNIs with access to off-market deals may prefer direct ownership for higher alpha, though a balanced portfolio with both REITs and physical assets is often recommended.