By Nehemiah Anini for The Chronicles of Construction
Nigeria’s real estate investment trust (REIT) market reached a valuation of $600 million in 2024, according to the newly released Knight Frank Africa Horizons 2025/26 Report.
The figure places Nigeria as one of Africa’s key but still emerging REIT markets — trailing South Africa but ahead of countries like Ghana, Morocco, and Egypt that are still laying regulatory foundations.
South Africa continues to dominate the continent, accounting for about $8.5 billion in market capitalisation, while Kenya follows Nigeria with $300 million.
In comparison:
- Nigeria – $600 million
- Kenya – $300 million
- Ghana, Morocco, Egypt – regulatory structures in place, but no operational REITs yet
Globally, however, Africa’s REIT presence remains small. The global REIT industry is valued at $4 trillion, with the U.S. alone accounting for nearly 80% ($3.2 trillion). By contrast, the entire African market stands at just over $20 billion, most of which sits in South Africa.
Nigeria’s REIT sector is driven by a handful of key players:
- UPDC REIT – The country’s first REIT, focusing on both residential and commercial properties. Its total property assets are valued at ₦33.47 billion ($21.8m) with a market capitalisation of ₦16.1 billion ($10.5m).
- Skye Shelter Fund – A major player in the affordable housing segment, managing assets of ₦3.47 billion ($2.3m) and a market capitalisation of ₦.12 billion ($2.7m).
Despite its modest size, Nigeria’s REIT sector is seen as having strong growth potential, driven by:
- Rapid urbanisation
- A youthful population fueling demand for housing
- Rising interest in commercial real estate
At the same time, regulatory bottlenecks, low investor awareness, and currency volatility continue to slow expansion compared to more mature markets.
The report highlights opportunities Nigeria can harness to strengthen its REIT market:
- Niche REITs – Kenya’s student accommodation trusts are already pointing to new possibilities.
- ESG-driven investment – Rising global demand for sustainable, compliant properties could reshape how investors engage with African real estate.
If Nigeria can align with these trends while addressing structural challenges, its REIT market could become a powerful instrument for housing delivery, infrastructure growth, and long-term investment.
At The Chronicles of Construction, we believe this is a critical conversation for professionals across the built environment, as REITs influence everything from affordable housing development to urban renewal projects. Stay tuned as we continue to track Nigeria’s real estate finance landscape and spotlight the opportunities and reforms that can unlock its full potential.
