What does 'real estate investing for beginners' mean in this context?

Instead of buying physical property directly, this approach involves investing in established companies that provide essential services to the property industry. Think of it as investing in the companies that power property markets rather than the properties themselves. This gives you exposure to real estate growth without the complexities of direct ownership, maintenance, or large capital requirements.

What are REITs and why are they included?

REITs (Real Estate Investment Trusts) are companies that own, operate, or finance income-producing real estate. They allow you to invest in property portfolios without buying buildings directly. REITs must distribute most of their income as dividends, making them popular for income-seeking investors. They trade on stock exchanges like regular shares, offering liquidity that direct property ownership doesn't provide.

How do telecom towers and data centres relate to real estate?

Telecom towers and data centres are specialised types of real estate infrastructure that generate rental income from tenants (mobile operators, tech companies). These assets are essential for modern digital connectivity and are often structured as REITs. They benefit from long-term contracts and growing demand for data and mobile services, making them attractive real estate investments.

What does 'market cap' tell me about these companies?

Market capitalisation (market cap) is the total value of a company's shares in the stock market. It's calculated by multiplying the share price by the number of shares outstanding. Larger market caps generally indicate more established, stable companies, whilst smaller caps might offer more growth potential but with higher risk. It helps you understand the size and scale of the companies you're investing in.

How does dividend yield work in real estate stocks?

Dividend yield shows how much a company pays in dividends relative to its share price, expressed as a percentage. Many real estate companies, especially REITs, are required to pay out most of their profits as dividends, often resulting in higher yields than other sectors. This makes them attractive for investors seeking regular income alongside potential capital growth.

8 handpicked stocks

Real Estate Investing Beyond Traditional Methods

Africa's property markets are rapidly growing, creating a need for modern real estate services and infrastructure. This basket offers exposure to established US and EU-listed companies that provide the data, management, and technology shaping global real estate trends.

Han Tan | Market Analyst

Updated today | Published at September 5