Fakoyejo OlalekanIn 2022, Nigeria’s real estate sector contributed N7 trillion to the country’s gross domestic product (GDP) and it is expected to expand by 5.2 per cent in 2023 according to Bismarck Rewane, the Chief Executive Officer of Financial Derivatives Company Limited.
With a booming population, which is expected to hit 400 million by 2050 from over 200 million Nigerians, the investment opportunities in the real estate market in Nigeria is enormous.
Prime Business Africa notes that the gains in skyrocketing population were in the past often reserved for deep-pocket investors in the construction market that are leading the drive to provide luxury and affordable residential and commercial properties.
However, that has changed in recent years, as middle- and lower-income earners now have access to profit from the investment opportunities in the real estate market in Nigeria.
This was made possible by real estate trust funds that have listed their shares in the Nigerian stock market to bridge the gap between real estate investment opportunities and retail investors.
Today, you can invest as low as N0.2 kobo in the real estate market to profit from the growth of the sector or own shares in a firm that’s in the property business without having to set up a construction company, acquire land or buy blocks and cement to erect your own properties.
These real estate trust funds are high-yielding property companies with shares in the capital market available for the public to buy and earn investment returns.
Four real estate investment companies you should know
UH REAL ESTATE INVESTMENT TRUST (UHOMREIT)
UHOMREIT is a real estate trust fund managing a portfolio of both residential and commercial properties in highbrow areas of Lagos and Abuja.
UH Real Estate Investment Trust, worth N9.15 billion as of 25 July 2023, has four-bedroom terraced houses, semi-detached duplexes, Flats and Serviced Apartments that are well equipped and well furnished.
The company offers investment opportunities in the real estate market through the capital market, as UHOMREIT has its shares listed on Nigerian Exchange Limited (NGX).
With over 250.01 million shares listed in the Nigerian stock market, persons or companies interested in investing in real estate can buy the shares of UHOMREIT at N36.6 kobo per share.
Investors in UHOMREIT get a return on investments through share appreciation periodically, yearly dividends, as well as occasional share buybacks.
SFS REAL ESTATE INVESTMENT TRUST (SFSREIT)
SFSREIT is also a publicly listed company in the Nigerian stock market with investments in residential homes, shopping malls, shops, hotels, offices and warehouses.
SFS Real Estate Investment Trust is in the business of acquiring, holding, renting, renovating and/or trading income-generating real estate.
The company, which is valued at N1.38 billion in the capital market, has 20 million shares listed in the Nigerian bourse for public investments.
With N69.3 kobo, you can invest in SFS Real Estate Investment Trust shares listed in the stock market and take advantage of the firm’s stock movements in the bourse, dividends, as well as other investment opportunities that come with holding shares in SFSREIT.
UPDC REAL ESTATE INVESTMENT TRUST (UPDCREIT)
UPDC Real Estate Investment Trust is also a property trust fund, pooling investments from various individual or institutional investors to erect buildings.
The firm has a diversified portfolio of real estate in Nigeria, where it acquires, develops and sells properties across various locations.
UPDCREIT has 2.66 billion shares listed on the stock market in Nigeria for public investments to grow its portfolio. Through this, you can acquire the firm’s shares at N3.5 kobo per share.
UPDC Real Estate Investment Trust also pays investors in the stock market dividends yearly and shareholders also gain from UPDCREIT’s share appreciation during stock trading.
SMART PRODUCTS NIGERIA PLC (SMURFIT)
Smart Products Nigeria (SMURFIT) presents an investment opportunity for Nigerians to invest in the real estate market by buying the firm’s shares.
SMURFIT’s share in the Nigerian stock market is worth N0.2 kobo. The company has 45 million outstanding shares listed on the bourse.
The trust fund company, worth N9 million in the bourse, says it is a real estate company dedicated to the facility needs of businesses and organisations.
Investors with shares in Smart Products Nigeria (SMURFIT) are also opportune to earn a return on investments through dividends and stock appreciation.
Note: It is important to note that buying shares in companies listed on the stock market could result in gains and losses, as the movement of a stock is determined by demands in the equity market – so investors are advised to trade with caution.
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