Jasmine Birtles
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The Best REIT ETFs to Buy in the UK in 2025
Ruby Layram
15th May 2025
If you’re looking to invest in property without the hassle of buying bricks and mortar, Real Estate Investment Trusts (REITs) and REIT-focused ETFs offer a convenient way to tap into the property market. Whether you’re after steady income, diversification, or exposure to global real estate trends, there’s likely a REIT ETF that fits the bill.
Here’s a rundown of some of the top REIT ETFs available to UK investors in 2025.
What is a REIT ETF?
A REIT ETF is an exchange-traded fund that invests in a basket of Real Estate Investment Trusts (REITs).
REITs are companies that own, operate, or finance income-producing properties like office blocks, shopping centres, warehouses, hotels- you name it! They’re legally required to return most of their profits to shareholders (often 90% or more), which is why they’re popular with income-focused investors.
Now, rather than buying individual REITs, which can be risky if one company underperforms, a REIT ETF spreads your investment across dozens or even hundreds of REITs. This gives you instant diversification and takes some of the stress out of property investing.
REIT ETFs are traded on stock exchanges just like shares, so you can buy and sell them easily through your investment platform. Plus, many of them pay regular dividends, making them a popular choice for those wanting a steady stream of income.
The Best REIT ETFs for UK Investors in 2025
If you would like to gain exposure to the property market, without buying a full-blown house, here are the best REIT ETFs to consider.
1. iShares UK Property UCITS ETF (IUKP)
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Focus: Tracks an index of UK-listed real estate companies and REITs.
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Fund Size: Approximately £530 million.
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Dividend Yield: Around 1.77%, with quarterly distributions.
This ETF offers exposure to major UK property companies like Segro and British Land. It’s a straightforward option for those wanting to invest in the UK property sector without selecting individual stocks.
2. Vanguard Real Estate ETF (VNQ)
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Focus: Invests primarily in US real estate and REITs.
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Fund Size: Approximately $34.9 billion.
The Vanguard real estate ETF provides diversified exposure to the US property market, including office buildings, hotels, and other commercial properties. It’s one of the largest real estate ETFs globally.
3. iShares Residential and Multisector Real Estate ETF (REZ)
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Focus: Targets residential and diversified real estate sectors.
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5-Year Return: Approximately 10.37%.
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Expense Ratio: 0.48%.
This ETF offers exposure to residential properties and other sectors, providing a balanced approach to real estate investing.
4. Nuveen Short-Term REIT ETF (NURE)
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Focus: Concentrates on short-term real estate investments.
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5-Year Return: Approximately 9.29%.
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Expense Ratio: 0.36%.
Aims to reduce interest rate sensitivity by focusing on short-term leases, which can be beneficial in fluctuating rate environments.
5. JPMorgan BetaBuilders MSCI US REIT ETF (BBRE)
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Focus: Tracks the MSCI US REIT Index.
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5-Year Return: Approximately 8.87%.
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Expense Ratio: 0.11%.
The JPMorgan BetaBuilders MSCI ETF offers broad exposure to the US REIT market with a low expense ratio, making it a cost-effective option for investors.
How to Invest in REIT ETFs in the UK
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Choose a Brokerage Platform: Select a UK-based investment platform that offers access to international ETFs, such as InvestEngine, AJ Bell, Interactive Investor, or eToro.
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Open an Investment Account: Set up a Stocks & Shares ISA or a general investment account.
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Fund Your Account: Deposit funds via bank transfer or debit card.
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Select Your ETF: Use the ETF’s ticker symbol (e.g., IUKP for iShares UK Property UCITS ETF) to locate it on your chosen platform.
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Place Your Order: Decide on the amount you wish to invest and execute the trade.
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Monitor Your Investment: Regularly review your portfolio to ensure it aligns with your investment goals.
Final Thoughts
Investing in REIT ETFs can be a practical way to gain exposure to the property market without the complexities of direct property ownership. Whether you’re interested in the UK market, the US sector, or a diversified global approach, there’s a range of ETFs to suit different investment strategies.
As always, consider your financial goals, risk tolerance, and investment horizon before making any investment decisions. If in doubt, consult with a financial adviser to ensure your choices align with your overall financial plan.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies, are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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