The Best Real Estate Investment for Beginners in 2025

So, you’ve been hearing “invest in real estate” and you’re thinking,“Maybe I should try this too.” But then the questions come flooding in “Where do I start?“ “What should I invest in?” ”How much do I need to start?” ” what is the best real estate investment for beginners?”

Relax. You’re not alone. Real estate can seem overwhelming at first, but once you understand the basics, it gets much easier. And the good news is that you don’t need to start big to start smart.

Let’s talk about the best real estate investments for beginners and why they might be just what you need.

What is the Best Real Estate Investment for Beginners?

Agricultural Real Estate: Investing in Farmland

Agricultural investments is one of the best real estate investment for beginners that is gaining traction especially palm oil investment.

Here’s Why Agriculture is Gaining Popularity:

1. Managed Farmlands: Investors can own farmland that is managed by professionals, combining passive income with sustainable practices.
2. Sector Contribution: Agriculture contributed about 29.44% to Nigeria’s GDP in 2024, highlighting its economic significance. 
3. Low Cost of Entry: Farmland is often more affordable than urban property.
4. Passive Income: You can earn without doing the farming yourself.
5. Long-Term Potential: It’s a smart, low-maintenance option for long-term investment.

How Does it Work?

You invest in land designated for farming, and a farming company manages the land and shares the profits with you. Some platforms even offer agricultural leaseback or agro buyback models, where your return is fixed and predictable.

Read more about investing in agriculture without farming.

Buyback Real Estate Schemes: Structured and Low-Risk

In a buyback scheme, you invest in a property and the company agrees to “buy it back” from you after a certain period, often at a higher price. It’s like flipping a house, but more structured.

Why it can work for beginners:

1. Guaranteed exit plan: You know when and how you’ll get your money back.
2. Predictable Returns: These schemes offer fixed returns, reducing investment uncertainty.
3. Lower Risk: With a guaranteed exit strategy, beginners can invest with more confidence.

Ensure you work with a credible company and fully understand the terms before proceeding.

Real Estate Investment Trusts (REITs): Invest Without Owning Property

If you are not ready to buy property yet, no problem. REITs is also one of the best real estate investment for beginners.

REITs let you invest in real estate without owning physical property. You buy shares in companies that manage real estate like malls, hotels, or office buildings and earn part of the profits.

Why Invest in REITs?

1. Attractive Returns: In 2023, REITs offered an average dividend yield of 4.5%, with mortgage REITs yielding up to 9.8%.  
2. Low entry point: You can start with small amounts of money.
3. No management needed: No tenants, no repairs, no stress.
4. Easy to buy/sell: Just like stocks.

You can use investment apps or contact a real estate professional to invest in real estate.

Read more about REITs here

Rental Properties

Investing in rental properties remains a popular choice for beginners. 

Here’s why:

1. Simple structure: The structure of rental property is quite simple and easy. You buy or build a property, rent it out, and earn monthly income.
2. Steady Income: In Nigeria, rental yields in prime areas like Lekki and Ikeja GRA range between 6% and 12% annually. As your property grows in value, your wealth grows too.
3. High Demand: In Lagos, about 80% of the population are renters, driven by urbanization and housing affordability challenges. 
4. Appreciating Assets: Properties in high-demand areas appreciated by an average of 15% in 2024. 

This can be a great investment if you’re willing to manage the property yourself or hire someone to do so.

Another way to earn from rentals is through Shortlet Apartments.

Investing in short-let apartments can also be lucrative. They are cash flow properties. To get started, all you need is a good property in a desirable location, along with someone to manage it for you.

As a beginner, it’s advisable to consult with a real estate practitioner to avoid potential issues down the line. 

For more information on investing in cash flow properties, feel free to read more here and subscribe to our newsletter for additional tips and insights on how to invest in Short-let apartment.

CONCLUSION

Investing in real estate doesn’t have to be complicated — you just need to start with the right strategy for you.

Whether you want to build passive income, grow your wealth, or simply learn how the market works, there’s a beginner-friendly real estate option waiting for you.

Start small, do your research, and don’t be afraid to ask questions. You’re not late — you’re right on time.

Have questions about getting started with any of these investment types? Let’s talk in the comments!