Nigeria’s five REITs worth $230 million market cap in Africa’s $30 billion market

Nigeria's five Real Estate Investment Trusts (REITs) together have a market capitalization of approximately $230 million, making up a small portion of Africa's estimated $30 billion REIT market. This information is derived from the Africa Real Estate Investment Trust (REIT) Report by Fortren & Company. The report examines REIT markets across countries in Sub-Saharan Africa, including South Africa, Nigeria, Kenya, Morocco, Egypt, Zambia, Zimbabwe, Tanzania, and Ghana.

Nigeria's REIT market, which began operating in 2008, is considered an emerging market but remains significantly smaller than South Africa's market, which constitutes about 92% of Africa's total REIT market value. Nigeria currently has five REITs with a combined market capitalization of $230 million. The market was dominated by UPDC REIT, SFS REIT, and UHREIT before Chapel Hill Denham NREIT and MOFI Real Estate Investment Fund entered in 2025.

Africa has a total of 49 operational REITs, with an estimated market value of $30 billion, according to the report. South Africa dominates the continent's REIT market, with a market value of over $27 billion, accounting for approximately 92% of the total. Factors such as deeper capital markets, stronger institutional participation, better liquidity, and robust regulatory and corporate governance frameworks contribute to South Africa's lead in the REIT market.

In Nigeria, high-net-worth individuals play a crucial role as institutional investors, given their importance in financing frontier markets like Nigeria, Kenya, and Zimbabwe. Nigeria's real estate funds saw mixed results in 2025, with a few large funds dominating the sector's assets. As of December 24, 2025, REITs had a combined net asset value of N483.06 billion, which constituted 6.30% of Nigeria's N7.67 trillion mutual fund industry.

This data highlights the dominance of a few large funds, with smaller REITs competing more on yield than scale. Experts suggest that Nigeria's REIT market could benefit from stronger participation from pension funds to attract long-term institutional capital. Additionally, limited participation by Nigerian REIT operators may hinder market expansion as some institutional-grade properties remain privately held.

It is also recommended that Nigerian REIT operators diversify into sectors with stable cash flows, such as healthcare facilities, student accommodation, and logistics.