Barriers and Success Factors to the Adoption and Implementation of Real Estate Investment Trusts (Reits) in African Real Estate Markets

Abstract

The paper inves gates the main barriers and success factors to the adop on and implementa on of Real Estate Investment Trusts (REITs) in African real estate markets. From their incep on in the US more than half a century ago, REITs have seen steady growth across the globe as a dis nct label in real estate investment markets Between 1990 and 2021, REITs have grown in both number and market capitalisa on from 120 listed REITs in two countries to over 800 in more than 40 countries. Their con nued growth has been buoyed by the manifold benefits associated with this investment op on, including increased access to the real estate investment markets, improved stock liquidity, steady access to capital, greater opportuni es for por olio diversifica on and stability, strong record of performance, to name a few. Despite these benefits, the reality is that the REIT regime is predominantly limited to the developed countries, mainly the US and Europe while other countries are s ll trailing. Africa, in par cular, is lagging behind other regions of the world with only a few countries -