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

Nigeria’s five Real Estate Investment Trusts (REITs) have a combined market capitalisation of about $230 million within Africa’s estimated $30 billion REIT market.

This is according to the Africa Real Estate Investment Trust (REIT) Report by Fortren & Company, which examines REIT markets in South Africa, Nigeria, Kenya, Morocco, Egypt, Zambia, Zimbabwe, Tanzania and Ghana.

The report identifies Nigeria as an emerging REIT market, although its market remains considerably smaller than South Africa’s, which accounts for about 92% of Africa’s total REIT market value.

What the report is saying

Nigeria’s REIT market has operated since 2008, when the country established its REIT framework, but the sector remains relatively small compared with South Africa’s market. Nigeria currently has five REITs, with a combined market capitalisation of about $230 million.

• “In Nigeria, the REIT market has been dominated by three key entities, namely UPDC, SFS, and UHREIT, since the framework’s inception in 2008.
• “However, in 2025, the market witnessed two key events with the launch of Chapel Hill Denham NREIT and MOFI Real Estate Investment Fund, a hybrid real estate and mortgage fund established by the federal government with the aim of curbing Nigeria’s housing deficit.
• “Overall, the country has five REITs currently, with a market cap of $0.23 billion,” the report read in part.

The market was initially dominated by UPDC REIT, SFS REIT and UHREIT before Chapel Hill Denham NREIT and the MOFI Real Estate Investment Fund entered the market in 2025.

Where Nigeria stands in Africa’s REIT market

Africa has 49 operational REITs with an estimated market value of $30 billion and listed market capitalisation of about $21 billion, according to the report. South Africa dominates with more than $27 billion, accounting for about 92% of the continent’s REIT market.

• Morocco follows with about $700 million, while Kenya has $250 million and Zimbabwe about $130 million.
• Egypt, Zambia, Ghana and Tanzania have smaller markets, with market values of about $160 million, $80 million, $40 million and $30 million respectively.
• Nigeria’s five REITs have a combined market capitalisation of $230 million, placing the country below South Africa, Morocco and Kenya.

Fortren & Company attributes South Africa’s lead to deeper capital markets, stronger institutional participation, better liquidity and stronger regulatory and corporate governance frameworks.

More details

The report identifies institutional participation as an important factor affecting the development of Nigeria’s REIT market.

• Nigerian REIT yields of below 8% are often compared with government securities that can offer returns of up to 15% annually, making fixed-income instruments more attractive to some institutional investors.
• Pension fund holdings in Nigerian REITs increased 168% to $50.9 million by March 2025, according to data from the National Pension Commission cited in the report.
• The report says institutional participation could be supported by policy measures, including potential mandatory pension fund allocations to listed real estate

High-net-worth individuals remain an important source of capital in frontier markets such as Nigeria, Kenya and Zimbabwe.

Get up to speed

Nigeria’s real estate funds recorded mixed performance in 2025, with a few large funds accounting for most of the sector’s assets. Data from official mutual fund records as of December 24, 2025, showed that REITs had a combined net asset value of N483.06 billion, representing 6.30% of Nigeria’s N7.67 trillion mutual fund industry.

• MOFI Real Estate Investment Fund had N269.85 billion in assets, representing 55.86% of total real estate fund NAV, with a 10.2% year-to-date return.
• Nigeria REIT had N163.63 billion, representing 33.87% of sector assets, with a 9.30% year-to-date yield.
• UPDC REIT held N33.10 billion, or 6.85% of sector assets, while recording a 38% year-to-date yield.
• Smaller funds collectively accounted for less than 6% of total sector NAV.

The figures show a sector dominated by a few large funds, while smaller REITs compete more on yield than scale.

What you should know

Nairametrics had earlier reported that Nigeria’s REIT market requires stronger pension fund participation to attract long-term institutional capital.

• Prof. Kola Akinsomi, associate professor of real estate finance and investment at the University of the Witwatersrand, made this known during an interview with Fortren & Company.
• Akinsomi said pension funds are a major source of long-term capital for REITs globally, but Nigerian pension funds allocate significant capital to government bonds because of yields of 15–20%.
• He said regulatory hurdles, including stamp duties and withholding taxes, discourage institutional participation in Nigerian REITs.

He also said passive participation by Nigerian REIT operators limits market expansion because some institutional-grade properties remain privately held.

Akinsomi suggested that Nigerian REIT operators diversify into sectors with stable cash flows, including healthcare facilities, student accommodation and logistics.