Nigeria’s Real Estate Investment Trust (REIT) market has a combined market capitalisation of approximately $230 million, representing a small share of Africa’s estimated $30 billion REIT market.
The figures are contained in a report by Fortren & Company examining REIT markets across Nigeria, South Africa, Kenya, Morocco, Egypt, Zambia, Zimbabwe, Tanzania and Ghana.
The report identified 49 operational REITs across Africa, with listed REITs accounting for approximately $21 billion in market capitalisation. Retail, office, industrial and residential properties represent about 89 per cent of the market.
South Africa Dominates the Market
South Africa accounts for approximately 92 per cent of Africa’s REIT market value, with an estimated market value exceeding $27 billion.
Fortren attributed the country’s dominance to its developed capital markets, strong institutional participation, improved liquidity and established regulatory framework.
The report noted that Ghana launched Africa’s first REIT in 1995, but the sector experienced limited growth for nearly two decades because of weak regulation, low investor awareness and shallow capital markets.
Activity increased after South Africa and Kenya operationalised REIT regulatory frameworks in 2013.
Nigeria Has Five REITs
Nigeria established its REIT market framework in 2008. The sector was initially dominated by UPDC REIT, SFS REIT and UHREIT.
The launch of Chapel Hill Denham NREIT and the MOFI Real Estate Investment Fund in 2025 increased the number of REITs identified in the report to five.
Fortren estimated the combined market capitalisation of Nigeria’s five REITs at approximately $230 million.
Pension Fund Participation Remains Limited
The report said institutional investors, including pension funds, insurance companies and asset managers, seek REITs for dividend income, inflation protection and portfolio diversification.
It stated that pension fund holdings in Nigerian REITs increased by 168 per cent to $50.9 million by March 2025.
However, institutional participation remains limited. The report noted that Nigerian REIT yields below eight per cent may appear less attractive compared with government securities offering returns of up to 15 per cent.
Report Recommends Stronger Regulation
Fortren & Company recommended stronger regulation, improved portfolio management and greater operational efficiency to attract institutional investors.
It also identified deeper capital-market liquidity, investor-friendly tax policies, lower financing costs and stronger institutional confidence as important factors for expanding Nigeria’s REIT market.
The report projected gradual growth in smaller markets such as Nigeria and Kenya, while South Africa is expected to retain its leading position.
