Pearl Hostel, located in Sangotedo, Lekki, has emerged as a standout property in the UPDC Real Estate Investment Trust (REIT), boasting a yield of 28.36% as of September 30, 2026. This impressive figure is more than double that of the second-highest yielding property in the portfolio, Victoria Mall Plaza 2, which achieved an 11.54% yield. The hostel's high occupancy rate of 98% reflects the acute demand for student accommodation in Nigeria.
This performance is particularly significant given the context of Nigeria's ongoing housing crisis for students. The country faces a staggering deficit of over one million formal student accommodation beds, with only 2,839 completed purpose-built student housing units available. The lack of formal housing options forces over 90% of Nigerian students to rely on informal off-campus accommodations, highlighting a critical gap in the market. As the student population continues to grow, the demand for such properties is likely to increase, presenting a lucrative opportunity for investors in the real estate sector.
Looking ahead, stakeholders should monitor the response of institutional investors to the growing demand for student housing. Increased participation from pension funds and other institutional investors could bolster the Nigerian REIT market, which remains relatively small compared to its African counterparts. With the potential for higher yields in student accommodation, there may be a shift in investment strategies that could reshape the landscape of Nigeria's real estate sector.