For most Nigerians, the dream of investing in real estate feels just out of reach. But what if you could own a piece of large-scale commercial property and earn from your investment, all without needing huge capital or dealing with agents and tenants? REITs are the answer.
You can invest in REITs in Nigeria by opening a brokerage account with a licensed stockbroker and purchasing them on the Nigerian Exchange (NGX). As an investor, you can make money from REITs either through dividend payments distributed by the company or by selling your shares for a profit.
However, there’s an even simpler path if you value ease and accessibility in investing — Piggyvest’s Investify. In this guide, we’ll walk you through the traditional path to invest in REITs and then show you the simpler Piggyvest way to get the real estate assets you want, without the hassle. But first, what are REITs and how do they work?
What is a Real Estate Investment Trust (REIT)?
Real Estate Investment Trusts (REITs) are investment vehicles (very similar to shares) that allow you to buy and sell into a portfolio of properties by purchasing shares of the company that owns them. The companies that make up REITs earn income from their collection of properties, and investors make money from the performance of these properties.
We already spoke about REITs in our article on the ways to invest in real estate in Nigeria as a beginner, but we’ll explain again.
Think of a REIT as a mutual fund but for real estate. Instead of buying a single property yourself, a REIT pools money from many investors to buy and manage a collection of income-generating properties. These can include office buildings, shopping malls, residential apartment blocks, and hotels.
So, when you invest in a REIT, you’re buying shares in that company and, by extension, owning a small fraction of all the properties in its portfolio.
How do REITs work in Nigeria?
REITs work in Nigeria the same way they do everywhere else in the world. However, the companies in question are listed on the NGX.
Here’s a step-by-step guide explaining how REITs work and make money:
- A REIT company gathers capital from thousands of investors.
- The company uses this money to purchase and manage a diverse portfolio of properties.
- The company then collects rent from the tenants of these properties or flips the purchased assets for a profit.
- A significant portion of this rental or sales income is then paid out to investors as dividends.
In Nigeria, the Securities and Exchange Commission (SEC) mandates that REITs distribute a significant portion of their taxable income to shareholders, making them a potentially steady source of passive income. This agency is also responsible for regulating the activities of REITs, making them as safe as trading regular shares on the NGX.
What are the pros of investing in REITs?
Like any investment, REITs come with a unique set of advantages.
Here’s a list of the benefits of investing in REITs:
- They offer a low barrier to entry. It’s far cheaper to buy shares in a REIT than to buy a physical property.
- They’re a great diversification option. You instantly own a piece of many properties, spreading your risk.
- You can earn passive income with REITs. You can earn regular income from dividends without the stress of being a landlord.
- REITs are professionally managed. Your investment is managed by real estate professionals.
Like other types of investments, most people use REITs as a component of a diversified portfolio to generate supplemental passive income, rather than as their sole source of funds.
But are there drawbacks to investing in REITs?
What are the limitations of REITs?
REITs are generally less risky than buying a single property because of diversification. However, they’re still tied to the health of the real estate market and the economy, so they carry more risk than a savings account. Still, it’s important to know them so you are well-informed before investing.
The following are some of the cons of investing in REITs in Nigeria:
How To Invest In Real Estate In Nigeria (Even If You’re Not Rich Yet): 5 Ways For Beginners To Get Involved
- They’re not immune to market risks. The value of REITs can fall if the overall real estate market slows down.
- Most REITs pay variable dividends. The dividend amount isn’t fixed and can change based on rental income and market conditions.
- REITs can have low liquidity: Some REITs can be difficult to sell quickly compared to other stocks and investment types.
These aren’t the only cons, of course. But they are the most important.
What types of REITs exist in Nigeria?
There are three principal types of REITs in Nigeria, each with a different investment strategy:
- Equity REITs: These are the most common type. They purchase, hold, and manage commercial and rental properties, with a primary focus on generating profit through property acquisition and management.
- Mortgage REITs: These REITs do not own or manage properties themselves. Instead, they invest in mortgages on real estate properties, earning income from the interest on those loans.
- Hybrid REITs: As the name suggests, these combine the strategies of the other two types by investing in both physical properties and real estate mortgages.
While these are the main categories, the majority of REITs available for public investment on the NGX are Equity REITs.
It’s also worth knowing that private REITs exist. These are not traded on public stock exchanges and are typically only available to institutional or accredited investors, unlike the publicly-listed REITs accessible to everyone on the NGX.
How to invest in REITs in Nigeria
You’ll need to go through the traditional stock market route if you want to invest directly in specific REITs listed on the Nigerian Exchange (NGX).
Here’s a step-by-step guide to investing in REITs in Nigeria:
- Find a licensed stockbroker: You’ll need a licensed brokerage firm to execute trades on your behalf on the NGX. You can find one using the trading license holder directory on the NGX website.
- Open your account: You will need to open a brokerage account with your chosen firm and a Central Securities Clearing System (CSCS) account, which holds your shares electronically.
- Fund your account: Deposit money into your brokerage account to fund your investment.
- Choose a REIT: Research the REITs available on the NGX, such as the SFS REIT or the UPDC REIT, to decide which aligns with your investment goals.
- Place a buy order: Instruct your stockbroker to purchase shares of your chosen REIT on your behalf.
You can learn more about stockbrokers and how you can trade with them by reading our article on how stockbrokers work in Nigeria.
For many people, navigating stockbrokers and the NGX can be intimidating, even if they know exactly which REIT they want to buy. If you want the benefits of real estate investing without the hassle, there’s an easier way — Investify.
How Do The Real Estate Investment Opportunities On Piggyvest Work?
How to buy and sell real estate investments on Investify
Investify is a feature within the Piggyvest app that simplifies investing. Instead of having to research and select individual REITs, it allows you to access expertly managed funds, including high-quality real estate assets. It’s designed for everyone (especially beginners), and you can get started with as little as ₦5,000.
Here’s how to invest in real estate on Investify:
- Log in to the Piggyvest app.
- Tap the “Invest” tab at the bottom of the screen to see available opportunities.
- Browse for options that specifically mention real estate or include property assets.
- Tap on a project to see its details and analyse the opportunity.
- Once you’re comfortable with the details, tap the “Invest Now” button.
- Enter the number of units you want to buy and confirm the transaction from your Piggyvest Flex Naira wallet.
Congratulations! Now, you’re a real estate investor.
Piggyvest’s Investify vs REITs
As we mentioned, the real estate opportunities on Investify aren’t REITs, but they do offer similar investment options as you’ll find with REITs.
The table below shows how Investify compares to REITs in Nigeria:
How To Set Financial Goals For A New Year: 7 Tips To Save Better In 2026
| Feature | Traditional REITs (via a broker) | Investify on Piggyvest |
| Process | It can be complex for beginners. | Simple, done in minutes on the Piggyvest app. |
| Minimum investment | Varies, can be higher or lower. | Low and accessible starting amounts (as little as ₦5,000). |
| Management | You must research and choose specific REITs. | Funds are pre-vetted by experts on your behalf. |
| Ease of use | Can be complex for beginners. | Extremely beginner-friendly. |
So, is it possible to create your own REIT?
Can you create your own REIT?
It may be difficult to set up a REIT in Nigeria, even a private one. Creating a REIT is a highly complex and capital-intensive process that involves setting up a public company, raising substantial funds to acquire a large portfolio of properties, and navigating the extensive legal and regulatory requirements set by the Securities and Exchange Commission (SEC) in Nigeria.
However, the entire purpose of a REIT is to allow a professionally managed corporation to handle this complexity, so individual investors don’t have to. After all, their beauty lies in your ability to invest in them, not create them from scratch.
Our recommendation? Skip the creating part and jump right into investing — especially if you’re a beginner.
Is there a good time to invest in REITs?
While financial experts often say it’s more about “time in the market” than “timing the market,” certain economic conditions can be more favourable for REITs. For instance, periods of economic growth or mass migration can lead to higher property values and occupancy rates.
Similarly, stable or falling interest rates can make it cheaper for REITs to borrow money for new property acquisitions.
However, for most investors, the best strategy may not be to wait for the “perfect” moment. Instead, you should focus on investing for the long term and building your position consistently over time. This long-term approach enables you to weather short-term market fluctuations and concentrate on building lasting wealth.
Tips for avoiding fraud when investing in REITs
Protecting your investment is just as important as making more money from it. While REITs listed on the NGX are well-regulated, it’s wise to be cautious.
Here are some essential tips to avoid fraud when investing in REITs in Nigeria:
- Only use official channels to invest. The safest way to invest in publicly traded REITs is through a licensed stockbroker registered with the SEC and the NGX. Never engage with individuals on social media or messaging apps claiming to sell REIT shares.
- Use vetted platforms for alternative REIT and real estate investments. Using trusted platforms like Piggyvest’s Investify provides an extra layer of security. All investment opportunities on Investify are carefully vetted by a team of experts before they are listed, protecting you from unverified schemes.
- Beware of “guaranteed” high returns. Be extremely wary of any scheme that promises guaranteed, risk-free, or unusually high returns. Legitimate investments always carry some level of risk, and their returns are never guaranteed.
- Verify information independently. Before investing, you can visit the official websites of the Nigerian Exchange (NGX) and the Securities and Exchange Commission, Nigeria (SEC) to confirm that the REIT and the brokerage firm are licensed and in good standing.
Happy investing!
The bottom line: Are REITs a good option for you?
REITs are a powerful tool for any Nigerian looking to add the stability and income potential of real estate to their portfolio. If you’re an experienced investor who enjoys in-depth research and managing a brokerage account or a newbie to real estate investing, they can be a solid choice.
However, for most people (especially beginners) who want a simple, trusted, and accessible way to get started in real estate investing, Piggyvest is an excellent way to access similar benefits. With Investify, you can benefit from real estate growth with just a few taps.
Download the Piggyvest app today to get started!
The articles on the PiggyVest Blog are developed by seasoned writers who use original sources like authoritative websites, news articles and academic journals to perform in-depth research. An experienced editor fact-checks every piece before it is published to ensure you are always reading accurate, up-to-date and balanced content.
- Journal of Property Research: Property performance analysis and performance indices: A review
- IDEAS: Portfolio Diversification of Nigerian REIT: Evidence from an African Real Estate Market
- Financial Times: REITs: A diversification trilogy
