Real estate has always been one of the most popular investments in Nigeria, but buying a house, apartment, office building or commercial property is expensive. It also comes with responsibilities that many investors would rather avoid, including finding tenants, maintaining properties, paying certain costs and dealing with property managers.

Real Estate Investment Trusts (REITs) offer another way to invest in property.

Instead of buying an entire building yourself, you buy units in a fund that invests in income-generating real estate. The fund pools money from investors and uses it to acquire and manage properties, with investors benefiting from rental income and, potentially, increases in the value of their investment.

For Nigerians who want exposure to real estate without having hundreds of millions of naira available to buy a property, REITs can be an interesting alternative.

But which are the best REITs in Nigeria?

There is no single answer because different REITs have different property portfolios, investment strategies, income profiles and levels of liquidity.

As of 2026, some of the most prominent listed Nigerian REITs include UH Real Estate Investment Trust, UPDC Real Estate Investment Trust and SFS Real Estate Investment Trust. There are also larger unlisted real estate funds, including the Nigeria Real Estate Investment Trust Fund and MOFI Real Estate Investment Fund.

This guide looks at the major options, their recent performance, what they invest in and what investors should consider before buying.

What Is a REIT?

A Real Estate Investment Trust is an investment vehicle that pools money from investors to invest in real estate and property-related assets.

Depending on the REIT, the portfolio may include:

• Residential properties
• Office buildings
• Shopping centres
• Hotels
• Warehouses
• Industrial properties
• Retail properties
• Other income-generating real estate

Instead of buying a property worth hundreds of millions of naira, an investor can purchase units in the REIT.

The investor therefore gains exposure to the underlying property portfolio without having to personally own and manage each building.

The Securities and Exchange Commission (SEC) regulates REITs as part of Nigeria’s collective investment scheme framework.

How Do REITs Make Money?

There are two major ways investors can potentially make money from a REIT.

Rental income

The properties owned by the REIT generate rental income.

Part of the income generated by the portfolio can ultimately be distributed to investors, subject to the fund’s structure, expenses and applicable rules.

Capital appreciation

The properties owned by the REIT can increase in value.

In the case of a listed REIT, the market price of its units can also rise.

This means a REIT investor can potentially benefit from both income and capital appreciation.

However, neither is guaranteed.

Property values can fall, occupancy can decline and the market price of a listed REIT can move independently of the underlying value of its properties.

The Best REITs in Nigeria to Consider in 2026

If you want to invest in Nigerian real estate through REITs, these are some of the major names worth researching.

1. UH Real Estate Investment Trust

Best for: Investors looking for exposure to prime residential and commercial property

UH Real Estate Investment Trust, formerly known as Union Homes REIT, is one of Nigeria’s established listed property investment vehicles.

The REIT was listed on the Nigerian Stock Exchange in 2008 and began full operations in February 2009. Its portfolio consists of residential and commercial properties, particularly in high-value areas of Lagos and Abuja.

Its investment strategy focuses on acquiring properties in locations with strong investment fundamentals and the potential to generate recurring income and capital growth.

The fund manager also says that a portion of the portfolio is held in money-market instruments to provide diversification and support distributions.

Recent performance

UH REIT has attracted considerable attention because of its strong share-price performance in 2026.

As of May 29, 2026, it had gained 63.36% year to date, rising from ₦51.85 at the beginning of the year to ₦84.70. However, by June 19, it had fallen to ₦70, reducing its YTD gain to 35%.

That movement illustrates an important point about REIT investing.

A strong YTD return does not mean that the investment will continue rising.

REITs listed on the NGX are still securities, and their prices can be volatile.

What makes UH REIT interesting?

• Exposure to Lagos and Abuja property
• Residential and commercial properties
• Long operating history
• Potential rental income
• Potential capital appreciation
• Listed on the Nigerian Exchange

What to watch

The biggest consideration is valuation.

After a significant rise in its market price, investors should examine the REIT’s underlying asset value, income generation, distributions and price relative to NAV rather than buying simply because the price has risen.

2. UPDC Real Estate Investment Trust

Best for: Investors who want a diversified property portfolio

UPDC REIT is one of Nigeria’s best-known listed REITs and has a diversified portfolio of income-generating residential, commercial and retail properties.

Its portfolio is predominantly concentrated in Lagos, where demand for quality commercial and residential property remains strong.

According to the REIT’s 2025 annual report, occupancy increased to 97% in 2025 from 96% in 2024, while rental income and cost management supported its performance. The unit price ended 2025 at ₦6.90, compared with ₦5.90 at the end of 2024.

Strong 2026 market performance

UPDC REIT has also had a strong run in 2026.

As of May 29, the REIT had gained 57.25% year to date, rising from ₦6.90 to ₦10.85. By June 19, however, it had fallen to ₦10.00, bringing the YTD gain down to 44.93%.

Again, this demonstrates why investors should distinguish between property performance and stock-market performance.

The value of the underlying properties does not necessarily change as quickly as the market price of a listed REIT.

A significant management change

UPDC REIT also underwent an important change in 2026.

Unitholders ratified the appointment of SFS Capital Nigeria Limited as the new fund manager, replacing Stanbic IBTC Asset Management. SFS Capital assumed full operational control from January 1, 2026.

The new manager reported that revenue reached ₦1.027 billion during the first 90 days of 2026, with rental income increasing 82.8% year over year and net distributable income increasing 36.4%.

Those figures make UPDC REIT particularly interesting to watch, although investors should wait for audited financial statements and longer-term results before assuming that recent improvements will automatically continue.

What makes UPDC REIT attractive?

• Diversified property portfolio
• Residential, commercial and retail exposure
• Significant Lagos presence
• High occupancy
• Long operating history
• Listed on the NGX
• Potential rental income and capital appreciation

What to watch

Investors should pay attention to the impact of the new fund manager’s strategy, future distributions, occupancy levels, rental growth and the REIT’s market price relative to its NAV.

3. SFS Real Estate Investment Trust

Best for: Investors interested in a long-established residential-focused REIT

SFS Real Estate Investment Trust, formerly known as Skye Shelter Fund, is another major Nigerian listed REIT.

It has a particularly interesting history.

SFS Capital says the fund was launched in 2008 and was Nigeria’s first publicly listed REIT. It also states that SFS REIT has paid dividends annually since inception.

The REIT’s portfolio focuses on upper-class residential housing in the Lekki area of Lagos.

That makes it quite different from UPDC REIT, which has a more diversified residential, commercial and retail portfolio.

Recent market performance

SFS REIT has not experienced the same price appreciation as UH REIT and UPDC REIT during 2026.

As of May 29, its market price remained at ₦418.75 per unit, unchanged from the beginning of the year. Its market capitalisation was approximately ₦8.38 billion.

That does not automatically make SFS a worse investment.

In fact, a REIT’s appeal can come from its income distributions rather than short-term share-price appreciation.

What makes SFS REIT interesting?

• Long operating history
• Focus on premium residential property
• Exposure to Lekki
• History of annual dividend payments
• Listed on the NGX
• Managed by SFS Capital

What to watch

Liquidity is important.

A REIT with relatively low trading activity can be more difficult to buy or sell at your preferred price.

Investors should also examine the fund’s latest financial statements, rental income, occupancy and distribution history.

4. Nigeria Real Estate Investment Trust Fund

The Nigeria Real Estate Investment Trust Fund is another significant name in the Nigerian REIT landscape.

Unlike the listed REITs discussed above, investors should carefully distinguish the structure and accessibility of this fund from the listed securities traded on the Nigerian Exchange.

As of July 31, 2026, the fund had a reported NAV of approximately ₦187.22 billion, making it one of the largest Nigerian real estate investment vehicles by NAV.

Its size is significant, but size alone should not determine whether it is right for you.

Before investing, you should establish:

• How the fund is currently accessed
• Its minimum investment
• Current NAV
• Distribution history
• Property portfolio
• Fees
• Redemption conditions
• Fund manager
• Trustee
• Current regulatory status

This is particularly important because a large NAV does not necessarily mean an investment will produce the highest return.

5. MOFI Real Estate Investment Fund

The MOFI Real Estate Investment Fund is another major property-focused investment vehicle in Nigeria.

As of July 31, 2026, it had a reported NAV of approximately ₦255.05 billion, making it the largest of the Nigerian REITs and related real estate funds tracked by The Investor’s Side by NAV.

However, it is important not to confuse size with performance.

An investment fund can have a huge portfolio and still deliver lower returns than a smaller fund during a particular period.

Investors considering MOFI Real Estate Investment Fund should therefore examine its current investment structure, access requirements, fees, distributions and underlying property exposure before making a decision.

Listed REITs vs Private or Unlisted REITs

This is an important distinction for Nigerian investors.

A listed REIT trades on the Nigerian Exchange.

That means you can buy and sell its units through a stockbroker, much like shares.

Examples include:

• UH REIT
• UPDC REIT
• SFS REIT

An unlisted or privately accessed REIT or real estate fund may not trade continuously on the NGX.

Its investment and redemption process can therefore be very different.

The choice between the two comes down partly to liquidity.

If you want the ability to buy and sell through the stock market, a listed REIT is generally more convenient.

If you are comfortable holding an investment for longer and the fund offers an attractive property portfolio and income profile, an unlisted vehicle may also be worth considering.

How Much Money Do You Need to Invest in a Nigerian REIT?

One of the biggest advantages of listed REITs is that you do not need enough money to buy an entire property.

You can purchase units through a stockbroker, subject to the applicable market price, trading rules and fees.

For example, NGX data at the beginning of 2026 showed SFS REIT at ₦418.75 per unit, UH REIT at ₦51.85 and UPDC REIT at ₦8.95.

Prices have since moved, so these figures should not be treated as current buying prices.

The amount required will depend on the REIT’s current market price, the number of units you want to buy, brokerage charges and other applicable costs.

This is dramatically different from buying an apartment yourself.

How Do You Make Money From a REIT?

There are two main possibilities.

1. Dividends or distributions

The properties generate rental income.

After expenses and other obligations, the REIT can distribute income to investors according to its structure and applicable rules.

For an investor seeking passive income, this can be one of the most attractive features of REITs.

2. Capital gains

If you buy units at ₦10 and later sell them at ₦15, you have made a ₦5 gain per unit, before considering transaction costs and taxes.

But the opposite can happen.

If you buy at ₦10 and the market price falls to ₦7, you have an unrealised loss if you continue holding the units.

This is why REITs should not be marketed as a guaranteed way to make money from property.

Are Nigerian REITs Safe?

REITs can be less capital-intensive than directly buying property, but they are still investments.

Your money is exposed to risks including:

Property-market risk

Property values can decline.

Vacancy risk

A building without tenants does not generate the same rental income as a fully occupied property.

Interest-rate risk

Changes in interest rates can affect property financing, valuations and investor demand for REITs.

Liquidity risk

Some listed REITs have relatively low trading volumes.

You may therefore have difficulty selling a large position quickly without affecting the price.

Management risk

The performance of a REIT depends partly on the quality of its property manager and fund manager.

Inflation and construction costs

Rising construction, maintenance and operating costs can affect property economics.

What Is the Best REIT in Nigeria for Dividends?

If your primary goal is income, don’t simply choose the REIT with the biggest recent share-price gain.

Look at:

• Historical distributions
• Current rental income
• Occupancy
• Net distributable income
• Payout history
• Property quality
• Tenant concentration
• Debt levels
• Management fees

SFS REIT is particularly notable for its long dividend history. SFS Capital states that it has paid dividends annually since inception.

However, past distributions do not guarantee future payments.

What Is the Best REIT in Nigeria for Capital Growth?

This is harder to answer because capital growth depends on both the underlying property portfolio and the market’s valuation of the REIT.

UH REIT and UPDC REIT have delivered substantial share-price gains in 2026.

As of May 29, UH REIT had gained 63.36% YTD and UPDC REIT had gained 57.25%.

But both subsequently gave back part of those gains.

This is precisely why investors should not buy a REIT simply because it has recently gone up.

The question should be:

Is the current price justified by the underlying assets, rental income and future growth prospects?

How to Choose the Best REIT in Nigeria

Before buying any REIT, consider these seven things.

1. Property portfolio

Find out what properties the REIT actually owns.

A portfolio of prime commercial buildings in Lagos is very different from one concentrated in lower-demand areas.

2. Occupancy

A property is only useful as an income-generating asset if tenants are paying rent.

High occupancy can be an encouraging sign, although it does not guarantee future performance.

UPDC REIT, for example, reported 97% occupancy in 2025.

3. Rental income

Look at whether rental income is growing or declining.

A rising REIT price without corresponding improvement in the underlying business deserves closer scrutiny.

4. Distribution history

If income is your priority, examine how consistently the REIT has distributed income to investors.

5. Price-to-NAV

This is one of the most useful measures when comparing listed REITs.

The market price tells you what investors are currently willing to pay for the REIT.

NAV gives you an indication of the underlying value of the assets after liabilities.

A REIT trading substantially above or below NAV deserves further investigation.

6. Liquidity

Check how frequently the REIT trades on the NGX.

A security can look attractive on paper but become inconvenient if you cannot easily buy or sell it.

7. Fund manager

Management matters.

UPDC REIT’s appointment of SFS Capital as its new fund manager in 2026 demonstrates how significant changes in management can be for a REIT’s strategy and future performance.

REITs vs Buying a House in Nigeria

REITs and physical property are not the same investment.

If you want to become a landlord, physical property may make sense.

If you want passive exposure to property without dealing with tenants, repairs and property management, a REIT can be more convenient.

Are REITs Better Than Money Market Funds?

Not necessarily.

They serve different purposes.

A money market fund is generally designed for relatively conservative, short-term investing.

A REIT gives you exposure to real estate and can provide both income and capital-growth potential, but its market value can fluctuate considerably.

For example, some Nigerian REITs experienced large share-price gains in early 2026, followed by substantial pullbacks.

Someone saving money for a bill due in three months probably shouldn’t put that money into a volatile listed REIT.

Someone building a long-term portfolio, however, may find real estate exposure useful.

How to Buy REITs in Nigeria

Buying a listed Nigerian REIT is relatively straightforward.

Step 1: Open a CSCS account

You will generally need a Central Securities Clearing System (CSCS) account to hold securities traded on the Nigerian Exchange.

Step 2: Choose a licensed stockbroker

Use a properly registered capital-market operator.

The SEC provides a searchable directory for verifying registered operators and their functions.

Step 3: Fund your brokerage account

Deposit the amount you want to invest.

Step 4: Choose your REIT

Research the REIT before placing an order.

Don’t buy solely because someone describes it as “the best REIT in Nigeria.”

Step 5: Place your order

Your broker will execute the trade on the NGX subject to available buyers and sellers.

Step 6: Monitor the investment

Track:

• Financial results
• Distributions
• Occupancy
• Property valuations
• NAV
• Market price
• Management changes

Final Verdict: What Are the Best REITs in Nigeria?

There is no single best REIT in Nigeria for every investor.

UH REIT is worth considering if you want exposure to prime residential and commercial property in Lagos and Abuja and are comfortable with market-price volatility.

UPDC REIT is particularly interesting for investors who want a more diversified portfolio of residential, commercial and retail assets. Its 2026 management transition and recent operational improvements also make it one to watch closely.

SFS REIT stands out for its long history and focus on premium residential property in Lekki, as well as its reported history of annual dividend payments.

For investors considering larger unlisted real estate funds, the Nigeria Real Estate Investment Trust Fund and MOFI Real Estate Investment Fund are also significant players by NAV, although their investment structures and accessibility differ from listed REITs.

The most important lesson is this:

Don’t buy a REIT simply because its share price has recently risen.

Look at the properties behind the fund, rental income, occupancy, distributions, NAV, liquidity, fees and the quality of its management.

Real estate can be a powerful part of a Nigerian investment portfolio, but you don’t necessarily need to buy a house to benefit from it. With a carefully selected REIT, you can gain exposure to income-generating property with considerably less capital and fewer responsibilities than becoming a traditional landlord.

For Nigerians looking to diversify their finances, there are several investment options worth exploring beyond traditional savings accounts. Dollar investment apps can provide access to US stocks, ETFs and other dollar-denominated assets, making them an option for people who want international exposure. For investors seeking relatively conservative short-term investments, money market funds can offer exposure to instruments such as Treasury Bills and other money-market securities, with returns that change according to market conditions. Another option is Real Estate Investment Trusts (REITs), which allow investors to gain exposure to income-generating property without having to buy and manage a physical building themselves. Before choosing any of these options, it is important to understand the risks, fees, liquidity and potential returns involved, and to compare products based on your own financial goals and investment timeframe.