beginner's guide to investing in philippine reits 2025

How to Invest in REITs in the Philippines: 2025 Guide

If you want to earn passive income from real estate, you can invest in REITs without the hassle of buying, managing, or renting a property. This is quite popular for financially literate millennials and even Gen Zs. Learn how REITs in the Philippines work, why they’re gaining traction, understand risks and dividends, and discover why they are a great option for Filipino investors in this guide.

What Are REITs in the Philippines?

In case you’re exploring the stock market for the first time, a REIT or Real Estate Investment Trust is a company that owns income-generating properties, including malls, hotels, and offices. REITs are listed on the Philippine Stock Exchange so Filipinos can invest in these properties. According to the REIT Act of 2009, these companies are required to distribute at least 90% of their income as dividends to shareholders.

Why Should Filipinos Invest in REITs?

In REITs, you can buy shares through a brokerage account instead of saving up millions to get a condo unit. You can start earning from real estate with as little as a few thousand pesos buy investing in REITs. Here are the benefits of REIT investment in the Philippines:

• Since REITs are mandated to share profits, you can earn dividend yields between 5% to 7% per year for a steady passive income.
  
  
• You only need a brokerage account to start investing, such as in COL Financial or BPI Tra
  
  
• Own a share of malls, office towers, and even solar companies for a diversified portfolio.
  
  
• Unlike a physical property, REIT shares are much easier to acquire and sell on the PSE for better liquidity.​

​In 2020, OFWs started getting a tax benefit for the dividends they earn from REITs. Their REIT dividends are exempted from the 10% withholding tax for 7 years.

Potential Risks​ of Buying REIT Shares

While there are lots of benefits of investing in REITs in the Philippines, it also has a fair share of risks just like any investment. First, share prices may fluctuate depending on the interest rates. Second, tenant defaults and vacancies can reduce potential income. And third, most REITs are tied to big property developers which can be a strength or a limitation based on management quality. So don't just go after high dividends, focus also on long-term growth and total returns.

If you're looking for the most reputable and profitable REITs in the Philippines, here are some suggestions you can try:

• One Ayala, Glorietta, and other office and retail properties from Ayala Land REIT.
• Offices in Eastwood and Iloilo Business Park from Megaworld REIT.
• Robinson's Land nationwide office and retail spaces from RL Commercial REIT.
• Renewable energy and solar farms from Citicore Energy REIT.
• Other options with a combination of office, retail, and energy assets from PREIT, VREIT, FILRT, and DDMPR.

Final Thoughts

Now that you know how to grow your money in REITs, you can start investing in notable companies for a steady passive income. Philippine REITs combine the reliability of property investing with the liquidity of the stock market. If you are eager to know more about this, you can ask question via our REALS.PH Facebook page. You may also browse our listings for house and lot in Baguio City and other major cities in the country.