Through blockchains you could easily meld REITs with pooled investments though. Projects like Atlant already exist aiming to solve tokenized ownership, so its feasible to imagine a project that includes both REIT and ownership functionality within the same chain.
REITs are a great investment when the real estate market as a whole is growing since it allows you to profit from those gains without having to pick a specific property to succeed. There's no reason someone investing in real estate shouldn't be invested in both properties and REITs, but REITs could be made more accessible to people who aren't in a position to purchase a property, allowing them to grow their equity alongside the real estate market and reach a position where they can purchase a property more easily.
Agree that the blockchain is designed perfectly for real estate recording.