Real Estate Investment Trusts (REITs) in Dubai are becoming a popular choice for small and first-time investors offering a lower-cost entry into the city's booming real estate sector. Experts highlight the advantages of REITs including lower capital requirements, liquidity and consistent passive income through regular dividend payouts. Unlike direct property purchases, REITs allow investors to access a diverse property portfolio with smaller investments.

Dubai's leading REITs like Emirates REIT, ENBD REIT and Dubai Investments Real Estate Fund focus on a mix of commercial, retail and residential properties. Commercial real estate remains the primary attraction but educational, healthcare and hospitality sectors are also gaining traction.

While REITs offer steady returns and portfolio diversification, experts caution that they are still vulnerable to market volatility, interest rate changes and economic shifts. Direct property investments may provide higher long-term returns and more control over property management but REITs offer liquidity and a more balanced investment approach. Additionally, Shariah-compliant REIT options increase accessibility for a wider range of investors.

Overall, Dubai's REIT market provides a low-barrier, diversified investment platform that appeals to those seeking exposure to the city's growing real estate market.