Real Estate Investing•Beginner
How REITs Compare to Private Real Estate
Daily liquidity and transparency versus illiquidity and potentially higher net returns.
By Priya Raman, Real Estate & Alternatives7 min readUpdated 2026-07-22✓ Fact-checked
REITs and private real estate own similar assets but package them very differently. The differences show up in liquidity, volatility, fees and taxation.
Liquidity
REITs trade daily. Private deals lock capital for years. That illiquidity is the source of any premium return you might earn.
Volatility is not the same as risk
Private valuations update quarterly, which makes them look smoother. The underlying buildings are just as exposed to rates and vacancy.
We may earn a commission if you open an account through links on this page. Our ratings and analysis are independent and are never influenced by partnerships. Full disclosure.