South Africa dominates the continent’s Real Estate Investment Trust (REIT) landscape, accounting for over 95% of Africa’s estimated $29 billion market.
The disclosure comes from a recent report by Fortren & Company titled “Insider Look at Africa’s $30 Billion REIT Market.”
The report highlights the significant concentration of listed property assets within South Africa, despite the gradual emergence of REIT structures in other African countries.
While other markets are developing, South Africa’s established REIT ecosystem remains the most mature, delivering strong returns and offering diversified investment opportunities across retail, office, industrial, residential, and logistics segments.
What the data is saying
South Africa hosts Africa’s largest and most developed REIT market, with over 30 listed vehicles on the Johannesburg Stock Exchange. The sector has recorded impressive returns in recent years, reflecting investor confidence and market maturity.
- “South Africa boasts the most mature REIT market on the continent, accounting for over 95% of the continent’s REIT value, with a market cap of around $29 billion.
- “The sector has undergone a massive re-rating in 2024 and 2025, recently delivering a staggering 46.2% year-to-date total return by late 2025, outperforming developed markets like the US, UK and even the Global REIT Index at 12% increase,” the report states.
It further shows that Growthpoint Properties, with a portfolio of more than 450 assets, exemplifies the diversified nature of South Africa’s REIT market.
Redefine Properties has shifted toward logistics and industrial assets while maintaining exposure to retail and office properties locally and internationally.
The data confirms South Africa’s REIT market is a clear leader on the continent, both in scale and performance, overshadowing emerging markets elsewhere in Africa.
Emerging REIT markets in Kenya and Morocco
Although South Africa dominates, other African countries are slowly developing REIT markets with innovative structures.
- Kenya’s REIT sector includes Income REITs (I-REITs) and Development REITs (D-REITs), supporting specialized property segments such as student housing. The Acorn Student Accommodation REIT has recorded strong net operating income growth.
- LAPTRUST Imara I-REIT, a pension-backed vehicle, offers diversified exposure across commercial, residential, and retail properties.
- Morocco benefits from stable macroeconomic conditions and relatively low construction costs. Immorente Invest, operating under an OPCI structure, focuses on offices, logistics, and industrial assets in hubs like Casablanca, while retail properties maintain high occupancy supported by domestic consumption and tourism.
These developments indicate that while smaller than South Africa, Kenya and Morocco’s REIT markets are poised for measured growth.
Nigeria’s growing REIT market
Nigeria’s REIT market remains modest but is gradually gaining traction, driven by institutional participation and government-backed initiatives.
Key listed vehicles include SFS REIT, UPDC REIT, and UH REIT.
In November 2025, Nigeria’s Ministry of Finance Incorporated (MOFI) listed its N1 trillion MOFI Real Estate Investment Fund (MREIF) Series 2 on the Nigerian Exchange Group, offering 1 billion units priced at N100 each.
Total REIT assets in Nigeria reached N483.06 billion by December 2025, representing 6.30% of the N7.67 trillion mutual fund industry.
More insights
Performance across Nigeria’s real estate funds shows a distinction between large, institutionally driven portfolios and smaller, high-yield-focused vehicles.
- MOFI Real Estate Investment Fund delivered a 10.2% YTD yield with 45 unitholders, reflecting an institutional focus.
- Nigeria REIT achieved a 9.3% YTD yield with 851 unitholders, indicating broader retail participation.
- UPDC REIT posted the highest YTD yield of 38%, attracting over 211,000 unitholders, demonstrating strong retail demand.
- Smaller REITs such as Union Homes REIT and SFS REIT delivered yields of 20.37% and 25.15%, respectively, despite modest asset bases.
These trends suggest that investors balance between steady income from large funds and high-yield opportunities from smaller REITs, depending on risk appetite and investment strategy.
What you should know
Nigeria’s real estate mutual fund segment, while small, plays a crucial role in mobilizing long-term capital.
- Total mutual fund assets stood at N7.67 trillion as of December 24, 2025.
- Real estate funds and REITs accounted for N483.06 billion, or 6.30%, of total industry assets.
- MOFI Real Estate Investment Fund controlled more than half of the total REIT NAV, reflecting concentration risk.
- UPDC REIT delivered the highest YTD yield at 38%, despite a smaller asset base.
As interest rates, inflation, and housing demand shape the market, Nigeria’s REIT sector is likely to see uneven performance, with investors navigating the trade-off between scale, yield, and liquidity.
