Nowadays in Europe, two different indirect instruments exist in order to invest in real estate; on one hand real estate investment funds and in the other listed real estate companies. With these instruments the investor not only takes position in the real estate market but also obtain different risk/return structures which may vary depending upon the instrument you use. Recently, in some European countries, real estate companies have modified their financial structure and tax position adopting the legal form of REIT (Real Estate Investment Trust) originated in USA, which change their relative position to real estate funds. In this document we will make a comparison between real estate funds and quoted real estate companies, as well as an analysis of the appearance of the REITS in Europe and its impact in the real estate industry.