In 2025, whether to invest in rental properties or REITs depends on your goals and market conditions. Rental properties may offer long-term appreciation and steady income but come with higher costs and active management. If interest rates stabilize, rental properties could be more attractive in high-demand areas. REITs, on the other hand, provide liquidity, diversification, and passive income without the need for management. If you prefer a hands-off investment with less risk, REITs might be a better choice, especially if market conditions are favorable for real estate sectors like commercial or residential.