Both Real Estate Investment Trusts (REITs) and Real Estate AIFs allow you to invest in property, but they are very different animals. REITs are publicly traded, liquid, and mostly own completed, rent-generating commercial assets. They are a “yield” play.
Real Estate AIFs, on the other hand, often invest in the development phase or in distressed projects. They are illiquid and carry higher risk but offer the potential for massive capital appreciation upon project completion. If you want steady income and liquidity, choose a REIT. If you want high growth and can lock away capital, an AIF is the superior choice.
