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Yes, the analysis of Lagos' property market is included in our pack
Property prices in Lagos vary dramatically across different areas and property types, with luxury apartments in Ikoyi commanding over ₦1 million per square meter while emerging areas like Ajah start from ₦200,000 per square meter. Understanding these price variations is crucial for both investors and homebuyers looking to make informed decisions in Nigeria's most dynamic real estate market.
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Lagos property prices range from ₦200,000 per square meter in emerging areas to over ₦1 million per square meter in premium locations like Ikoyi and Victoria Island.
New-build properties command a 10-20% premium over resale properties, while total acquisition costs add 10-15% to headline prices through various fees and taxes.
| Area | Apartments (₦/sqm) | Houses (₦/sqm) | Key Characteristics |
|---|---|---|---|
| Ikoyi | 800,000 - 1,200,000 | 1,600,000+ | Most expensive, luxury/expat zone |
| Victoria Island | 600,000 - 1,000,000 | 1,200,000 - 1,400,000 | Prime offices, top-end residential |
| Lekki Phase 1 | 400,000 - 700,000 | 900,000 - 1,400,000 | Large new-build supply |
| Yaba | 250,000 - 400,000 | 400,000 - 800,000 | Young professionals, student hub |
| Ikeja | 400,000 - 600,000 | 600,000 - 1,000,000 | Government, business center |
| Ajah | 200,000 - 350,000 | 350,000 - 600,000 | Emerging area, lower entry costs |
| Mainland Hubs | 200,000 - 400,000 | 350,000 - 700,000 | Maryland, Gbagada - high demand |
What's the current average price per square meter in Lagos by property type and condition?
As of September 2025, Lagos property prices per square meter vary significantly based on property type and whether you're buying new-build or resale properties.
Apartments in moderate areas typically range from ₦200,000 to ₦400,000 per square meter, but luxury developments in premium locations like Banana Island can reach up to ₦1,000,000 per square meter. Townhouses generally fall within the ₦250,000 to ₦500,000 per square meter range in central islands and affluent mainland corridors.
Detached houses show the widest price variation, with top districts like Ikoyi and Victoria Island commanding ₦1,400,000 to ₦1,600,000 per square meter, while properties outside these premium areas cost significantly less at ₦200,000 to ₦400,000 per square meter. The location premium in Lagos real estate market is substantial, often tripling or quadrupling prices between emerging and established areas.
New-build properties consistently command a 10-20% premium over resale properties across all categories. This premium reflects developer markup, modern finishings, and contemporary building standards that buyers value in Lagos's competitive market.
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How do prices vary across Lagos's key neighborhoods and which micro-areas stand out?
Lagos property prices show dramatic variations across different areas, with Ikoyi maintaining its position as the most expensive district in the city.
Ikoyi leads the market with apartments priced between ₦800,000 and ₦1,200,000 per square meter, while houses exceed ₦1,600,000 per square meter. This area remains the preferred choice for luxury buyers and expatriates. Victoria Island follows closely with apartments ranging from ₦600,000 to ₦1,000,000 per square meter and houses between ₦1,200,000 and ₦1,400,000 per square meter, benefiting from its prime office locations and high-end residential developments.
Lekki Phase 1 offers more moderate pricing with apartments at ₦400,000 to ₦700,000 per square meter and houses between ₦900,000 and ₦1,400,000 per square meter, supported by large new-build supply and modern infrastructure. Mid-tier areas like Yaba show apartments priced at ₦250,000 to ₦400,000 per square meter, making it popular among young professionals and students.
Ikeja, as the government and business heartland, commands ₦400,000 to ₦600,000 per square meter for apartments. Emerging areas like Ajah offer the most affordable entry point with apartments starting from ₦200,000 to ₦350,000 per square meter, while mainland hubs including Maryland and Gbagada maintain strong demand with prices between ₦200,000 and ₦400,000 per square meter.
Specific micro-neighborhoods that command premium prices include Banana Island, Oniru, Parkview Ikoyi, Ikeja GRA, and exclusive Lekki Phase 1 estates, all benefiting from superior infrastructure, security, and expatriate demand.
How does price per square meter change with unit sizes and are there size discounts?
Lagos property market demonstrates clear pricing patterns based on unit sizes, with smaller units typically commanding higher prices per square meter.
Studios and one-bedroom apartments achieve the highest price per square meter as buyers pay a premium for compact, efficient living spaces. In premium areas like Ikoyi or Victoria Island, studios can reach ₦1.1 to ₦1.3 million per square meter, compared to ₦800,000 to ₦900,000 per square meter for larger three to four-bedroom units in the same developments.
Three to four-bedroom apartments and duplexes generally benefit from unit price discounts as size increases, reflecting economies of scale in both construction and buyer preferences. A four-bedroom apartment in Ikoyi might cost ₦900,000 per square meter while a one-bedroom in the same building commands ₦1.1 million per square meter.
However, luxury penthouses and top-tier duplexes can buck this trend, commanding premiums above certain size thresholds when they offer exceptional features like panoramic views, private terraces, or unique architectural elements. These premium properties often attract buyers willing to pay extra for exclusivity and prestige.
The size discount effect is most pronounced in mid-market areas where practical considerations dominate purchasing decisions, while luxury markets show more variation based on specific property features and positioning.
What are recent actual purchase prices versus asking prices across major areas?
Recent transaction data from Q3 2025 reveals consistent patterns of negotiation between asking and closing prices across Lagos's major residential areas.
| Area & Property Type | Asking Price Range | Closed Price Range | Price per SQM (Closed) |
|---|---|---|---|
| Ikoyi 3-bed apt (300sqm) | ₦320-370M | ₦300-340M | ₦1,000,000-1,133,000 |
| Victoria Island studio (55sqm) | ₦65M | ₦57-62M | ₦1,036,000-1,127,000 |
| Lekki Phase 1 4-bed duplex (350sqm) | ₦160-180M | ₦150-170M | ₦428,000-486,000 |
| Ajah 3-bed terrace (200sqm) | ₦70M | ₦58-65M | ₦290,000-325,000 |
| Yaba 2-bed apartment (100sqm) | ₦45M | ₦38-42M | ₦380,000-420,000 |
| Ikeja GRA 4-bed mansion (600sqm) | ₦380M | ₦340M | ₦567,000 |
These examples show that buyers typically achieve 5-15% discounts from initial asking prices, with the largest discounts often seen in higher-priced properties where negotiation room is built into initial pricing strategies.
What's the total acquisition cost including all fees and taxes?
The total cost of acquiring property in Lagos extends significantly beyond the headline purchase price due to various mandatory fees and taxes.
Legal fees typically account for 1-2% of the purchase price, while agency fees can range from 1-5% depending on negotiation and property type. Title and registry costs add another 1-2%, and stamp duties contribute 1.5% to the total cost. Annual land use charges vary by area and property value, while developer fees on new builds can add 0-3%. VAT applies at 5-7.5% specifically on new properties only.
These transaction costs combine to increase the total acquisition cost by 10-15% above the headline purchase price. For accurate budgeting, multiply the initial price per square meter by 1.10 to 1.15 to determine the true "all-in" cost per square meter. A property with a headline price of ₦500,000 per square meter will actually cost ₦550,000 to ₦575,000 per square meter when all fees are included.
Additional costs like property inspections, insurance, and moving expenses can add another 2-3% to the total, making proper financial planning essential for property acquisition in Lagos.
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What mortgage options are available and what are sample monthly payments?
Lagos mortgage market in 2025 offers limited but improving financing options for property buyers, though terms remain challenging compared to developed markets.
Current interest rates range from 15-25% per annum, with most lenders offering both variable and fixed-rate options. Loan-to-value ratios typically cap at 50-80%, though most banks prefer maximum 70% financing. Mortgage tenors span 5-20 years, with 10-year terms being most common. Down payments typically require 20-30% of the purchase price, while closing costs add another 2-4% covering valuation, legal work, and documentation fees.
For a sample ₦100 million property with a 20-year mortgage at 18% interest and 30% down payment, monthly payments would range from ₦1.24 to ₦1.5 million, excluding property management and maintenance costs. These high monthly payments reflect both elevated interest rates and the substantial down payment requirements in Nigeria's banking sector.
Foreign buyers face additional restrictions and typically require higher down payments, making cash purchases more common among international investors in the Lagos property market.
Which areas offer the best value for owner-occupiers considering quality of life factors?
For owner-occupiers seeking the best balance of price, quality, infrastructure, and safety, several Lagos areas stand out as offering superior value propositions.
Lekki Phase 1 provides excellent value for families and professionals, offering modern housing developments, quality schools, shopping malls, and relatively good security infrastructure. The area balances contemporary amenities with reasonable pricing compared to ultra-premium districts. Ikeja GRA delivers strong value through established infrastructure, government presence, and significant commute time savings for those working in the business district.
Yaba emerges as a top choice for young professionals and tech workers, offering vibrant commercial activity, improving public services, and affordable entry costs while maintaining good connectivity to other parts of Lagos. The area benefits from ongoing urban renewal projects and growing start-up ecosystem.
While Ikoyi offers elite living standards and maximum security, the extremely high cost per square meter and substantial running costs make it less attractive from a pure value perspective. Emerging areas like Ajah, Maryland, and parts of Yaba provide the best combination of affordability and improving livability as infrastructure development continues.
It's something we develop in our Nigeria property pack.
Where are the best opportunities for short-term rental investments?
Short-term rental investments in Lagos show strong potential in specific areas that attract business travelers, expatriates, and domestic tourists.
Victoria Island, Ikoyi, Lekki Phase 1, and Yaba represent the strongest markets for short-term rentals. Nightly rates in luxury areas like Ikoyi and Victoria Island range from ₦60,000 to ₦250,000, while Lekki and Yaba properties typically command ₦25,000 to ₦60,000 per night for well-furnished units.
Current occupancy rates average 50-70% in Q3 2025, with Victoria Island and Lekki showing the highest occupancy for serviced and furnished apartments. Key regulations include Lagos STR registration requirements, fire and guest safety compliance, and local government taxation that investors must navigate carefully.
Net yields after operating costs range from 7-11% when properties are managed efficiently, though returns can be significantly lower with poor occupancy or high overhead expenses. Success in Lagos short-term rental market requires professional management, excellent property presentation, and strategic pricing to compete effectively.
The regulatory environment continues evolving, requiring investors to stay current with local government requirements and tax obligations for short-term rental operations.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Nigeria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are realistic long-term rental yields by area and property type?
Long-term rental yields in Lagos vary significantly across areas and property types, with mid-market locations generally offering superior returns compared to ultra-luxury segments.
Ikoyi and Victoria Island properties typically generate 3-5% net yields despite commanding high rental rates, as the elevated purchase prices compress overall returns. These areas appeal to investors seeking stable, high-quality tenants and capital preservation rather than maximum yield generation.
Lekki, Yaba, and Ajah deliver stronger yields of 6-8%, benefiting from robust demand among young professionals, expatriates, and growing middle class. These areas offer the best balance of rental income and capital appreciation potential for most investors. Mainland hubs including Maryland and Gbagada achieve 7-9% yields and demonstrate greater resilience during economic downturns due to wider tenant pools and diverse demand sources.
Vacancy resilience varies significantly by segment, with larger luxury properties in Ikoyi and Victoria Island more exposed to vacancy risk during economic uncertainty. Mid-market properties in Lekki, Yaba, and established mainland areas show greater stability and faster re-letting when tenancies end.
Property management costs, maintenance expenses, and security requirements can significantly impact net yields, making professional management essential for optimizing long-term rental investment performance in Lagos.
Which areas show the strongest resale potential and what returns have sellers achieved?
Several Lagos areas demonstrate compelling appreciation catalysts and strong resale potential based on infrastructure development and economic growth patterns.
Ibeju-Lekki, Lekki Phase 1, Yaba, Ajah, and Epe lead appreciation prospects due to major infrastructure projects including ports, business parks, transportation improvements, and commercial developments. These areas benefit from both government investment and private sector expansion that drives long-term value creation.
Typical hold periods for significant capital gains range from 3-7 years, allowing sufficient time for infrastructure completion and area maturation. Between 2022 and 2025, many sellers achieved 40-70% gains, particularly on land and new-build properties in developing corridors. More established properties in Victoria Island and Ikoyi showed more modest but steady appreciation of 10-20% over similar periods.
Recent infrastructure catalysts include the Lekki Deep Sea Port, ongoing road network expansion, new commercial developments, and planned transportation projects that continue driving area transformation. Early investors in emerging corridors consistently outperform those buying in fully matured areas like central Ikoyi.
Successful resale strategy requires careful timing, area selection, and understanding of infrastructure development timelines to maximize appreciation potential in Lagos's evolving urban landscape.
How do current prices compare with historical trends over 1 and 5 years?
Lagos property prices have experienced substantial appreciation over both recent and medium-term periods, driven by urban growth, currency effects, and persistent housing shortages.
Over the past 12 months (Q3 2024 to Q3 2025), Lagos property prices increased 10-15% citywide, with emerging areas like Ajah, Lekki, and Epe showing outsized gains of 15-30%. These increases reflect continued urbanization pressure and infrastructure-driven demand in developing corridors.
The five-year trend shows dramatic appreciation, with estimates suggesting 80-110% price increases after adjusting for inflation and naira depreciation between 2019 and 2025. Land in emerging areas achieved even more spectacular gains of up to 300% over this period, particularly in areas that transitioned from undeveloped to infrastructure-ready status.
Key drivers of this appreciation include sustained urban population growth, significant currency devaluation effects, major infrastructure project completion, and Nigeria's persistent housing deficit that continues pressuring available supply. The combination of local currency weakness and strong domestic demand created powerful inflationary pressures on property values across all segments.
These historical trends demonstrate Lagos property market's resilience and growth potential, though future appreciation rates may moderate as the market matures and currency stabilizes.
What's the outlook for Lagos property prices over 1, 5, and 10 years compared to peer cities?
Lagos property market outlook remains positive across multiple time horizons, though growth rates may moderate from recent historical levels.
One-year outlook suggests 5-12% further appreciation likely, with mid-market areas and land near new transit infrastructure leading gains. Infrastructure completion and continued urban migration support near-term price stability and growth. Five-year projections indicate high double-digit cumulative appreciation in Lekki, Ajah, Epe, and Yaba as major development projects mature, while Ikoyi and Victoria Island may see steadier but more limited upside due to already elevated pricing.
Ten-year outlook positions Lagos for continued inflation-driven nominal growth, though actual dollar-denominated yields may fluctuate with naira volatility and macroeconomic conditions. The city's role as West Africa's commercial hub and Nigeria's economic center supports long-term value creation despite periodic currency and political risks.
Compared to peer African cities, Lagos rental yields of 6-8% in mid-market segments exceed Accra and Nairobi yields of 4-7%, match Johannesburg's 6-9% range, but carry additional currency and political risk premiums. Capital appreciation potential in fast-developing Lagos corridors surpasses most comparable cities, though established areas show similar patterns to other major African commercial centers.
Lagos compares favorably to emerging market cities like Mumbai in terms of growth potential, though infrastructure and governance challenges require careful area selection and professional management for optimal investment outcomes.
It's something we develop in our Nigeria property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Lagos property market offers diverse investment opportunities with prices ranging from ₦200,000 per square meter in emerging areas to over ₦1 million in premium locations like Ikoyi.
Success requires understanding area-specific dynamics, factoring in total acquisition costs, and choosing the right strategy whether for owner-occupation, rental income, or capital appreciation.
Sources
- The AfricanVestor - Lagos Nigeria Market Data Real Estate
- Properstar - Nigeria Lagos House Price
- The AfricanVestor - Lagos Nigeria Price Forecasts
- Gibraltar Properties - Lagos Real Estate Market 2025
- PropertyPro - Studio Apartment for Sale
- Jide Taiwo & Co - Lagos Properties
- The AfricanVestor - Average House Price Nigeria
- PropertyPro - Property for Sale