Real Estate Becomes Top Investment Choice in Nigeria, Ghana, Kenya, and Uganda
Real Estate Captures 22.3% of Portfolio Allocations Across Key African Markets
Real estate has surpassed stocks and mutual funds to become the most preferred investment asset class across Nigeria, Ghana, Kenya, and Uganda. According to the Risevest Cost of Living Report 2025, property investments now dominate portfolio allocations as investors increasingly seek tangible hedges against currency volatility and inflationary pressures.
Market Shift: Property Outperforms Traditional Assets
The report, which synthesized over 19,000 validated responses from investors in these four key markets, found that real estate accounted for 22.32% of total investment allocations. This figure places property ahead of stocks (20.51%) and mutual funds (18.10%). Other asset classes, including fixed deposits (7.54%) and cryptocurrency (5.28%), trailed significantly.
The data underscores a resilient culture of wealth-building, with 85.1% of respondents identifying as active investors during the 2025 fiscal year. The preference for real estate is largely attributed to its dual capacity for capital appreciation and rental income, providing a stable alternative to more volatile financial instruments.
Drivers of Property Investment Preference
In the face of fluctuating exchange rates and rising costs of living, investors in these sub-Saharan African nations view real estate as a reliable "store of value." Key drivers identified in the report include:
Tangibility: The physical nature of property offers a sense of security during periods of economic uncertainty.
Inflation Hedging: Property values and rental yields often adjust in tandem with inflation, preserving investor purchasing power.
Diversification: Real estate allows for a balanced risk profile when combined with traditional liquid assets like equities.
While direct ownership remains the most popular entry point, the report notes a growing interest in Real Estate Investment Trusts (REITs). These vehicles provide a more liquid and professionally managed avenue for smaller-scale investors to gain exposure to commercial and residential developments.
Regional REIT Market Developments
The report highlights the maturation of REIT markets in West and East Africa. In Nigeria, the mutual fund sector reached ₦7.67 trillion by December 2025, with real estate funds and REITs including players like SFS REIT and UPDC REIT accounting for ₦483.06 billion (6.3% of total assets under management).
Kenya has seen similar growth through specialized products such as the Acorn Student Accommodation REIT and various dollar-denominated I-REITs. Despite this progress, South Africa remains the continental leader, controlling over 95% of Africa’s $29 billion REIT market.
The rise of real estate as the primary investment choice in Nigeria, Ghana, Kenya, and Uganda reflects a strategic pivot by African investors toward long-term stability. As urban populations continue to grow and the demand for quality housing increases, property is likely to remain a cornerstone of wealth preservation strategies. For policymakers and developers, this trend highlights the urgent need for structural reforms to improve land tenure systems and broaden access to real estate financing.
