Across Nigeria, Ghana, Kenya, and Uganda, a clear investment message is emerging: property has become the most preferred asset class, edging out both stocks and mutual funds. This shift is not simply about trend-chasing or short-term returns. It reflects how households and increasingly sophisticated investors are responding to a unique combination of macroeconomic realities currency risk, inflation sensitivity, limited capital market depth, and persistent housing shortages while also navigating new opportunities created by digitized finance and growing financial literacy.

A regional investor report based on over 19,000 validated responses across these four markets found that real estate now accounts for 22.32% of total investment allocations, outpacing stocks (20.51%) and mutual funds (18.10%). Other asset classes trail at a distance: fixed deposits (7.54%), cryptocurrency (5.28%), agritech investments (0.60%), and a catch-all “other” category at 10.71%.

Even more notable than the allocations is participation. The survey indicates that 85.1% of respondents were active investors in 2025, suggesting that investment behavior is not confined to a narrow elite. A wider group of individuals is increasingly treating investing as a normal part of financial life, with only 14.93% reporting no investment activity during the year.

Taken together, these figures point to a structural reality: in much of Africa’s growth corridor, real estate is functioning as both an investment vehicle and a perceived financial safety net.

But why has property taken the lead especially in markets where liquidity is often tight, mortgage access remains limited, and legal processes can be complex? And what does this preference mean for stock markets, mutual fund growth, and the future of more formal real estate vehicles like REITs?

Build the future you deserve. Get started with our top-tier Online courses: ACCA, HESI A2, ATI TEAS 7, HESI EXIT, NCLEX-RN, NCLEX-PN, and Financial Literacy. Let Serrari Ed guide your path to success. Enroll today.

This article unpacks what the numbers really signal, how the region arrived here historically, what similar patterns look like in other periods and markets, the risks behind the property first mindset, and what to watch next.

What the Data Says (and Why the Order Matters)

Let’s start with what the allocation ranking implies.

• Real estate: 22.32%
• Stocks: 20.51%
• Mutual funds: 18.10%
• Fixed deposits: 7.54%
• Cryptocurrency: 5.28%
• Agritech: 0.60%
• Other: 10.71%

On paper, the gap between property and stocks is modest roughly 1.81 percentage points. But in practice, the top position matters because investment preference is not only about returns; it is also about trust, familiarity, perceived safety, and cultural legitimacy.

If an investor believes stocks can rise faster, but still chooses property, the decision is not purely financial. It reflects a deeper calculus:

• “Property feels real.”
• “I can rent it out.”
• “It won’t disappear overnight.”
• “Land is scarce; prices eventually rise.”
• “Even if markets crash, the house remains.”

This kind of reasoning becomes especially powerful in environments where market volatility, currency depreciation, and inflation are part of lived experience rather than occasional headlines.

Why This Matters: Property Preference Is a Macro Signal, Not Just a Lifestyle Choice

Real estate topping the list is important because it affects how economies grow, how businesses raise capital, and how financial markets develop.

1) It shapes where national savings go

When households allocate more of their investment capital to property, less flows into equities and formal pooled products. That can constrain stock market liquidity and make it harder for companies to raise funds by issuing shares.

2) It influences construction, jobs, and local supply chains

Property investment stimulates construction, cement production, building materials, skilled labor, and infrastructure demand. In fast-urbanizing countries, this can be a growth engine.

3) It can widen inequality if left unmanaged

Real estate booms often reward those who already own property and can access prime locations. If prices rise faster than incomes, new buyers are locked out, tenants face pressure, and wealth concentration increases.

4) It reveals trust gaps in capital markets

When mutual funds and equities lag property in preference, it often indicates either (a) limited access, (b) limited understanding, or (c) limited trust in institutions brokers, fund managers, exchanges, and regulators.

5) It raises systemic risk questions

If household wealth becomes heavily concentrated in real estate, then downturns in property markets or policy changes can have broader financial stability implications.

So this is not merely a “people love housing” story. It is a story about how wealth strategies evolve in emerging markets and what that evolution does to the broader economy.

Historical Background: Why Real Estate Has Always Been a Default “Safe Asset” in Many African Markets

To understand why property remains such a powerful magnet for capital, it helps to look at history. In Nigeria, Ghana, Kenya, and Uganda, several recurring themes have shaped investor psychology over decades.

Inflation and the memory of purchasing power loss

Even when inflation is not currently high, the memory of inflation cycles stays with households. Property is commonly perceived as a hedge because land and building costs tend to rise with inflation over time. Rent also adjusts upward in many markets, creating an income buffer.

Currency volatility and the “hard asset” instinct

In countries where exchange rates have faced depreciation pressure at various points, investors seek “hard” assets. Property, especially in major cities, is often seen as a store of value that is less exposed to currency swings than paper assets particularly if demand includes diaspora buyers and higher-income earners.

Informal economies and trust in physical ownership

In economies where informal income and cash-based earnings are significant, property becomes a natural target: it is a visible, socially validated form of wealth. People may distrust financial instruments they cannot physically verify or fully understand.

Limited breadth in equity markets

Even where stock markets exist and are well-regulated, they may be dominated by a small number of large firms. When diversification options are limited, investors may see equities as “too narrow” or “too insider-driven,” reinforcing property’s appeal.

Referencing Similar Past Patterns: Real Estate Winning Isn’t New But the Scale Is

In many emerging markets historically, property leads investment preference when two conditions align:

1. Uncertainty rises (inflation, currency volatility, political stress, global shocks).
2. Capital markets feel distant (low participation, limited trust, low liquidity).

This pattern was visible in multiple cycles:

• Post-2008 global financial crisis in many regions: property in core cities held emotional appeal as equities became synonymous with crash risk.
• COVID-era uncertainty: despite disruptions, many investors doubled down on real assets as safe-haven behavior strengthened.
• High-rate environments: paradoxically, even when mortgages become expensive, wealthier investors sometimes accumulate property using cash or leverage via alternative routes, while retail investors remain locked out.

What is different now is that the preference is appearing across multiple African markets at once, backed by a large survey sample (19,000+ respondents) and accompanied by evidence that investing itself is becoming more widespread (85.1% active investors).

That suggests something more structural: a regional mainstreaming of investing but with property still the anchor.

Country Lens: Why Nigeria, Ghana, Kenya, and Uganda Converge on Property

While each market is unique, the reasons for property dominance overlap.

Nigeria: scale, housing deficit, and the rental engine

Nigeria’s population scale and housing deficit create a deep demand foundation. The report points to an estimated housing shortfall (commonly cited in public discourse) and an active rental market especially residential. A market like Lagos functions almost like its own economy: rental demand is strong, land scarcity is real, and property is used as a core wealth store for both local and diaspora investors.

The report also includes an important public data point: Nigeria’s total mutual fund assets reached ₦7.67 trillion by December 2025, but real estate funds and REITs represented ₦483.06 billion (6.30%). This signals a crucial split: Nigerians may prefer property, but they still largely prefer direct property over formal real estate instruments.

That gap is both an opportunity and a warning. It is an opportunity because it suggests a runway for REITs and real estate funds to grow if trust and performance improve. It is a warning because it means households are often exposed to property-market risk without the liquidity and diversification benefits that structured products can provide.

One decision can change your entire career. Take that step with our Online courses in ACCA, HESI A2, ATI TEAS 7, HESI EXIT, NCLEX-RN, NCLEX-PN, and Financial Literacy. Join Serrari Ed and start building your brighter future today.

Kenya: urban demand, diaspora flows, and land scarcity narratives

Kenya’s property story is shaped by urban growth and the powerful narrative of land scarcity. Even when capital markets offer alternatives, property remains emotionally compelling. In Nairobi and satellite towns, property is often framed not just as an investment but as “owning security.”

Kenya also has a maturing investor ecosystem fund managers, SACCOs, and digital investment products but the survey suggests property still wins mindshare.

Ghana: institutional reforms meet strong property culture

Ghana has experienced periods of financial-sector reform and recapitalization in recent years. When financial systems undergo restructuring, investor caution rises especially for more complex financial instruments. Property, by contrast, feels stable and personally controllable. In Accra and key urban centers, real estate is tied to the diaspora economy and prestige dynamics that reinforce demand.

Uganda: steady urbanization and the practicality of rentals

Uganda’s investment culture is also shaped by steady urban expansion and the role of rental income. For many middle-class households, a rental unit is seen as the most practical investment: it generates income and holds value, even when markets fluctuate.

Why Stocks Are Still Close Behind, Yet Still Lose

Stocks holding 20.51% of allocations is not a weak showing it is significant. It suggests that equity investment has real traction. Yet equities still sit behind real estate. That tells us something important: investors may recognize growth potential in equities, but still prefer property as the “default.”

Several reasons explain why stocks often trail property in these markets:

1. Volatility and perception of unpredictability
   Many retail investors associate stocks with sharp swings. Even when volatility exists in property, it is less visible day to day, which creates a perception of stability.
2. Liquidity paradox
   Stocks are more liquid, but investors may not view liquidity as a benefit if they are afraid of panic selling or market manipulation. In such cases, property’s illiquidity is psychologically reframed as discipline.
3. Limited market breadth
   If the exchange is concentrated in a few large names, people feel they are not truly investing in “the economy,” just in a few firms.
4. Information asymmetry concerns
   Where investor education is uneven, people fear insiders have advantages in equities.

Mutual Funds at 18.10%: Growing, But Still Fighting for Trust

Mutual funds accounting for 18.10% of allocations indicates that pooled investing is gaining ground, likely supported by:

• Mobile money and digital finance growth
• Lower minimum investment sizes
• Product awareness through fintech distribution
• Increased “salary investor” adoption

However, mutual funds are still below property and stocks, implying that many investors either:

• Don’t fully understand fund structures,
• Don’t trust fees and intermediaries,
• Or prefer “control” over their assets.

Nigeria’s public AUM figure (₦7.67 trillion) is instructive. It shows the market is real and substantial. But the small share for real estate funds and REITs implies investors are still cautious about packaged real estate exposure even when they love real estate itself.

Fixed Deposits and Crypto: Why They Trail So Far Behind

Fixed deposits (7.54%)

Fixed deposits are typically chosen for capital preservation, not wealth expansion. Their lower share suggests a more risk-aware, growth-oriented investor base. In many cases, deposit rates struggle to beat inflation consistently, weakening their appeal as an “investment” asset.

Cryptocurrency (5.28%)

Crypto is present but not dominant. That may reflect:

• regulatory uncertainty,
• volatility concerns,
• and lessons from boom-bust cycles.

Crypto’s placement behind fixed deposits in allocation shares suggests that while curiosity exists, trust and long-term conviction remain limited compared to property.

The REIT Angle: Why South Africa Dominates and What That Reveals

South Africa controls over 95% of Africa’s ~$29 billion REIT market, with 30+ listed vehicles on the Johannesburg Stock Exchange.

This matters because it explains why property investment looks different across Africa:

• In South Africa, real estate investing is heavily institutionalized through listed REITs.
• In Nigeria, Ghana, Kenya, and Uganda, property investing is still primarily direct—land purchases, personal builds, rental units, and informal syndicates.

The difference is not preference; it is infrastructure.

South Africa’s REIT dominance reflects:

• deep pension and insurance capital pools,
• mature listing culture,
• clearer property valuation standards,
• and stronger secondary market liquidity.

In markets where those structures are still developing, investors may prefer direct property ownership because it feels more reliable than new, thinly traded instruments.

But as capital markets deepen, the South Africa model becomes a possible pathway: investors keep their preference for property, but the vehicles evolve.

The Big Tension: Real Estate Preference vs Housing Affordability

When real estate becomes the top investment class, a difficult question follows: does investment demand worsen affordability?

In many markets, the answer can be yes if investment demand outruns supply. Investors buying second or third properties can push prices beyond the reach of first-time homebuyers, especially in prime urban areas. Rental markets can also tighten.

On the other hand, investment capital can expand supply if it finances new construction and development, especially in housing-deficit economies.

The difference lies in whether investment capital goes to:

• new supply (construction, development, new units), or
• existing stock speculation (buying and reselling the same units).

This is where policy, planning, and financing structures matter.

Risks to Monitor: When Property Dominates, New Vulnerabilities Appear

Real estate’s lead position is rational in many ways, but it creates risks that executives and policymakers should track.

1) Liquidity risk for households

Property is hard to sell quickly. If households over allocate to property and face emergencies, they may struggle to convert assets into cash without heavy discounts.

2) Valuation and bubble risk in localized hotspots

Even if national markets are stable, specific neighborhoods can become overpriced relative to incomes. Bubble dynamics tend to appear first in “must own” zones in major cities.

3) Construction cost inflation and supply constraints

If building materials become expensive or infrastructure is delayed, supply cannot keep up with demand leading to price distortions.

4) Policy and tax risk

Governments may introduce property taxes, land reforms, or new compliance requirements that alter returns. If investors view property as “tax-free forever,” they may be underestimating policy risk.

5) Title and legal risk

In many markets, land documentation issues remain a serious challenge. Title disputes can erase returns and damage trust.

6) Interest rate and credit tightening risk

Even when most purchases are cash-driven, the market’s marginal buyer often relies on credit. If borrowing tightens, demand can cool quickly.

Why This Matters for Capital Markets: Property Dominance Can Keep Equities Underdeveloped

If property consistently wins household allocations, equity markets may struggle to deepen. That matters because equities play a unique role in an economy:

• They fund business expansion.
• They enable corporate governance through public ownership.
• They create liquidity and price discovery for enterprises.

If stock markets remain thin, businesses depend more on bank loans and informal capital, which can limit innovation and scale. So the story isn’t “property is good, stocks are bad.” The real story is: property preference reflects a rational response to macro realities but diversification and market development still matter.

Looking Ahead: What Changes Next (2026–2030)

This is the most important forward-looking question: will property remain #1, and if yes, what form will property investing take?

1) Growth of structured real estate products (REITs and funds)

Nigeria’s mutual fund AUM indicates the infrastructure exists for growth. If investors gain confidence in governance and transparency, REIT and real estate fund shares could rise from the current low base.

2) Expansion of fractional ownership models

Digitization may allow smaller investors to access property-linked returns without buying full units. This could widen participation and reduce concentration of property ownership among high-net-worth groups.

3) Institutional capital becomes a bigger player

Pension funds and insurers may allocate more to real estate especially if yields in fixed income compress or if inflation hedging becomes important again.

4) Regulation and standardization improves trust

As regulators strengthen consumer protection and disclosure, investors may become more comfortable with pooled products.

5) Stock and mutual fund competition will intensify

Property may remain the emotional favorite, but equities and mutual funds can regain ground if:

• stock market reforms improve liquidity,
• listings increase,
• and investor education strengthens.

Conclusion: Property Leads Because It Solves Problems That Paper Assets Don’t

The numbers are clear: across Nigeria, Ghana, Kenya, and Uganda, real estate is now the most preferred investment asset class, capturing 22.32% of allocations, ahead of stocks (20.51%) and mutual funds (18.10%). Participation is also strong, with 85.1% of respondents actively investing in 2025.

But the deeper meaning is not simply that “people like houses.” Real estate is winning because it addresses real constraints that investors face:

• It provides perceived protection against inflation and currency instability.
• It feels controllable in environments where institutional trust is still developing.
• It offers utility (shelter, rental income) alongside investment returns.
• It aligns with cultural wealth narratives in a way paper assets often don’t.

At the same time, the data hints at an important evolution: investors are increasingly active and increasingly diverse in their asset choices. Stocks and mutual funds are not collapsing; they are strong contenders. The more important question is whether the region can build the kind of market infrastructure that lets people invest in real estate without concentrating too much household wealth in illiquid property, and without starving equity markets of capital needed for business growth.

South Africa’s dominance of Africa’s REIT ecosystem over 95% of a ~$29 billion market with 30+ listed REITs—offers a glimpse of what the future could look like: a world where real estate remains a favored asset, but exposure becomes more institutional, liquid, and diversified.

For Nigeria, Ghana, Kenya, and Uganda, the investment story is not just “real estate wins.” The real story is that a new investing culture is taking shape and property is currently the anchor. Whether that anchor becomes a platform for broader diversification or a constraint on financial market development will depend on policy, transparency, product design, and how quickly trusted investment vehicles scale.

Ready to take your career to the next level? Join our Online courses: ACCA, HESI A2, ATI TEAS 7 , HESI EXIT  , NCLEX – RN and NCLEX – PN, Financial Literacy!🌟 Dive into a world of opportunities and empower yourself for success. Explore more at Serrari Ed and start your exciting journey today! ✨

Track GDP, Inflation and Central Bank rates for top African markets with Serrari’s comparator tool.

See today’s Treasury bonds and Money market funds movement across financial service providers in Kenya, using Serrari’s comparator tools.

photo source: Google

By: Elsie Njenga 

16th February,2026