Nigeria’s real estate investment trust (REIT) market is gaining ground, with its value estimated at $600 million in 2024, according to the newly released Knight Frank Africa Horizons 2025/26 Report.

This positions Nigeria as the second-largest REIT market in Africa, behind South Africa but ahead of other countries like Ghana, Morocco, and Egypt that are still laying regulatory foundations.

How Nigeria Compares Globally

While Nigeria’s progress is notable, the scale remains modest when placed against global benchmarks. The global REIT industry is worth about $4 trillion, with the United States alone accounting for nearly 80% (around $3.2 trillion). In Africa, the total market is just over $20 billion, with South Africa dominating at $8.5 billion. Kenya follows Nigeria with $300 million in REIT assets.

Key Players in Nigeria’s REIT Market

Nigeria’s REIT industry is still relatively young, led by a handful of players:

UPDC REIT: The country’s first real estate investment trust, managing both residential and commercial properties with assets valued at N33.47 billion ($21.8 million). Its market capitalisation stands at about N16.1 billion ($10.5 million).

Skye Shelter Fund: Focused on affordable housing, the fund manages assets worth N3.47 billion ($2.3 million) and a market capitalisation of around N12 billion ($2.7 million).

Opportunities and Challenges

Experts see huge growth potential in Nigeria’s REIT space. With rapid urbanisation, a youthful population, and rising demand for affordable housing and commercial spaces, the foundations for expansion are in place.

However, the sector still faces hurdles such as:

Regulatory bottlenecks that slow down progress

Low investor awareness, with many Nigerians still unfamiliar with REITs

Currency volatility, which impacts returns and investor confidence

The Future Outlook

The Knight Frank report also highlights new trends shaping the sector across Africa. For example, Kenya has pioneered student accommodation trusts, while investors globally are seeking more sustainable, ESG-compliant properties.

For Nigeria, the opportunity lies in embracing these innovations while addressing its structural challenges. If done right, the REIT market could become a major driver of real estate growth, unlocking new investment opportunities and helping to tackle the country’s housing gap.