S/Africa’s 95% control of continent’s REITs market challenges Nigeria, investors

South Africa is comfortably in control of Africa’s Real Investment Trust Funds (REITs) market, cornering over 95 percent of the continent’s market value estimated at $30 billion.

This should challenge Nigeria, which prides itself as the giant of Africa and the continent’s largest economy. It is a wake-up call not only for the country, but also its investors, especially those who have eagle eyes on the country’s burgeoning real estate market.

Nigeria has a huge market underpinned by its large population, estimated at 230 million people. Besides an estimated 28 million housing units deficit, the country also has a very active rental market, especially in the residential segment. This is a low-hanging fruit for investors, both foreign and domestic.

A new report on the market titled ‘Insider Look at Africas $30 billion REIT Market’ reveals that South Africa has a market capitalisation estimated at $29 billion, giving it a huge edge over other notable operators, including Nigeria, Kenya, and Morocco.

Nigeria trails South Africa with a market capitalisation estimated at $600 million as of 2024, which, though small, highlights its position as one of the emerging REITs markets.

The new report compiled by Fortren and Company and obtained by BusinessDay states that “the sector has undergone a massive re-rating in 2024 and 2025, recently delivering a staggering 46.2 percent year-to-date total return by late 2025, outperforming developed markets like the US, UK, and even the Global REIT Index at 12 percent increase.”

The report notes that as of today, there are over 30 REITs listed on the Johannesburg stock exchange (JSE) that are diversified with funds in residential, logistics, industrial, office and retail real estate assets.

This figure is way ahead of Nigeria’s three REITs, including SFS REIT, UPDC REIT and the UH REIT. The Ministry of Finance Integrated (MOFI) Real Estate Fund (MREIF) is a new addition to this lot.

MOFI entered the REIT landscape by incorporating the MOFI Series 2 Real Estate Investment Fund in November 2025.

By listing 1 billion units at $0.07 each, the Nigerian government injected millions of dollars in liquidity into the sector, signaling a bullish 2026 in Nigeria. MOFI is designed to provide mortgage liquidity and drive up the value of all other residential REITs.

The Fortren and Company report highlights significant opportunities in the new year, citing SFS REIT, which at $0.29, is considered the blue chip of the sector.

“Its performance in 2025 proved that residential and commercial rentals in prime Lagos locations are inflation-resistant,” Martin Uche, the company’s director, research and advisory, explained, noting that, in 2026, it is expected that SFS will lead the market in capital appreciation as institutional funds rebalance away from falling Treasury Bill yields into high-quality equities.

He described UPDC REIT as a long-term value play, explaining that the REIT, currently trading at $0.01, is arguably the most undervalued asset on the NGX relative to its Net Asset Value (NAV).

“For students and young professionals, this is the entry door. Its massive earnings recovery in late 2025 suggests that the management is successfully optimizing its Grade-A office and retail portfolio,” the director assured.

Africa’s REIT market is emerging as a more accessible pathway into real estate, allowing investors of all sizes to participate in income-generating assets without direct ownership.

REIT is here to demystify the myth that real estate investment across Africa is a privilege reserved for those with deep pockets, insider access, or hundreds of thousands of dollars sitting idle.

That belief is no longer true. Like in other parts of the world, REITs are providing a more affordable platform for investment across the continent’s real estate markets.

Today, REITs have emerged as an equaliser, allowing individual investors to own stakes in institutional-grade real estate assets, alongside pension funds and billionaires, without buying land, managing property, or tying up millions in capital.