Fractional real estate investing in Nigeria is not completely new. Many of us might have unknowingly participated in it without knowing.
Remember those times you wanted to buy something either for yourself or for someone but could not get it due to the high cost of it, you then find other persons who are interested in getting that same thing. The cost was split among you for affordability and it was a win-win for everyone.
The rates of inflation in Nigeria today are quite high, coupled with the minimum wage, buying a property in a good location in Nigeria will require you to save up for years to acquire and with the Naira depreciating it is almost impossible for you to achieve your dream. This is why now is the best time to know what investing in fractional real estate entails even as a beginner and the benefit as a Nigerian.
Fractional real estate investing allows people to own a small portion of a property rather than buying an entire building or piece of land. In 2025 this investment method will become increasingly popular in Nigeria, offering an affordable way for individuals with limited funds to participate in real estate.
According to Statista, the Nigeria Real Estate market will achieve a value of US$2.42tn this year, 2024. Among the various segments within the market, Residential Real Estate holds the largest share, with a projected market volume of US$2.08tn by 2024.
Over the period of 2024-2029, the market is expected to exhibit a compound annual growth rate (CAGR) of 7.08%, resulting in a market volume of US$3.41tn by 2029. The real estate market in Nigeria is experiencing a surge in demand for luxury apartments in major cities.
What Is Fractional Real Estate Investing?
This type of investing involves splitting a property into smaller units or shares that investors can purchase. By buying these shares, individuals own a part of the property such as an apartment block, shopping centre, or plot of land without needing to pay the full cost. Each person’s ownership is a function of how much they contribute.
Also Read: Top 5 Emerging Real Estate Investment Locations in Nigeria
How Does It Work?
1. Choosing a Property
Real estate companies or platforms identify suitable properties, which could be residential, commercial, or agricultural.
2. Breaking Down the Cost
The total value of the property is divided into smaller, affordable shares. For example, a ₦10 million property might be split into 1,000 shares, each costing ₦10,000.
3. Investing in Shares
Individuals purchase as many shares as they can afford, with some platforms allowing investments starting from ₦5,000 or ₦10,000.
4. Earning Returns
Income generated from the property, such as rent, is shared among investors based on the number of shares they own.
5. Selling Shares
Investors can sell their shares if they wish to exit. This is usually done through the platform or during a designated resale period.
Why Is Fractional Real Estate Investing Gaining Popularity in Nigeria?
1. Low Investment Barrier
Many Nigerians can’t afford to buy property outright, but fractional investing lets them start small.
2. Tech-Driven Access
Online platforms and apps simplify the process, enabling users to browse properties, monitor earnings, and manage their investments directly from their phones. Eg crowdfunding platform like Crowdstreet is best for real estate crowdfunding.
3. Booming Real Estate Sector
As Nigeria’s real estate market grows, people are eager to capitalize on increasing property values.
4. Diversified Investments
Investors can spread their money across different properties instead of putting all their funds into one.
Also Read: How to Spot Genuine Land for Sale in Nigeria and Avoid Scams
Potential Risks of Fractional Real Estate Investing in Nigeria
1. Market Uncertainty
Property prices may rise or fall depending on economic conditions.
2. Management Challenges
Poor management of the property can reduce its profitability.
3. Limited Liquidity
Selling shares might not always be easy, especially if there’s no buyer.
Conclusion
In 2025, fractional real estate investing in Nigeria offers an excellent opportunity for individuals with smaller budgets to gain exposure to the real estate market. It provides a way to earn income and benefit from rising property values without requiring a huge initial investment.
However, like any investment, it has risks, so thorough research is essential before committing funds.
If you would like to explore any of our investment plans like land banking, retirement plan, kids education investment plan and trade apprenticeship plan, send an email to us at info@affablehomes.com.ng or call +2349134056630.
