Investing in real estate through investment funds in many highly developed countries is extremely profitable and is becoming a viable alternative to investment in stocks. Investment funds allocating capital to real estate are also present in Poland. However, the Polish market is relatively underdeveloped. There are only a few funds of this type available, and capitalisation of these funds does not exceed a few hundred million zlotys. There are no REIT type investment funds, in their traditional form, on the Polish market, because of the missing legislation. However, an act is being prepared, which aims at regulating the functioning of REITs in Poland and facilitating a dynamic development of this form of capital allocation for individual investors.

The aim of the first part of the article will be to present the current state of the Polish investment fund market, with funds allocating capital to real estate. Capitalisation of these funds, rates of return and possible reasons for the poor development of the Polish real estate investment funds market will be presented. The second part of the article will present the main provisions of the act, which is being prepared and aims at regulating the functioning of REIT funds in Poland, and the act’s objectives according to its authors.