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Yes, the analysis of Lagos' property market is included in our pack
Property prices in Lagos vary dramatically across neighborhoods, with prime areas like Ikoyi and Victoria Island commanding over ₦3.7 million per square meter while budget-friendly zones like Ikorodu offer properties from ₦200,000 per square meter.
As of September 2025, the Lagos residential market shows strong price growth with increases of 39.5% in 2024 and 5-15% year-to-date in 2025, driven by infrastructure development and population growth. Understanding the Lagos property market requires examining specific districts, property types, and total purchase costs including the substantial closing fees that can add 15-25% to the sale price.
If you want to go deeper, you can check our pack of documents related to the real estate market in Nigeria, based on reliable facts and data, not opinions or rumors.
Lagos property prices range from ₦200,000 per square meter in budget areas to over ₦3.7 million per square meter in prime locations like Ikoyi and Victoria Island.
Total purchase costs including fees add 15-25% to sale prices, while rental yields vary from 4.7% in prime areas to 6-8% in mid-market locations.
| Location Category | Price Range (₦/m²) | Rental Yield |
|---|---|---|
| Prime (Ikoyi, VI, Banana Island) | ₦3,697,000+ | 4.7-5.5% |
| Mid-market (Yaba, Surulere, Gbagada) | ₦800,000-₦1,500,000 | 6-8% |
| Up-and-coming (Lekki corridor, Sangotedo) | ₦600,000-₦1,000,000 | 5.5-7% |
| Budget-friendly (Ikorodu, Ajah, Ikota) | ₦200,000-₦500,000 | 6-8% |
| Land/Development areas (Ibeju-Lekki, Epe) | ₦200,000-₦400,000 | Varies |
What exactly do we mean by "average property price" in Lagos—citywide or specific districts, new builds or resales, and which data sources will we use?
Average property price in Lagos refers to the mean or median asking prices for residential sales across the metropolitan area, typically broken down by specific districts and property types.
The data encompasses both new builds and resale properties, with most sources differentiating between apartments, terraces, duplexes, and detached houses. Lagos property data comes primarily from online listing platforms like BuyLetLive, agency sales records, developer disclosures, and professional valuation indices.
As of September 2025, Lagos property prices are tracked across distinct zones: Lagos Island (including Victoria Island and Ikoyi), Lagos Mainland areas like Yaba and Surulere, and the expanding Lekki corridor stretching to Epe. Each zone shows different price dynamics based on infrastructure, proximity to business districts, and development status.
Most reliable data sources focus on completed transactions rather than just listing prices, which can overstate actual market values by 5-10%. The Lagos property market operates primarily in Nigerian Naira, though some luxury developments quote in US dollars.
How do average prices differ by property type (apartment, terrace/duplex, detached house, serviced vs non-serviced)?
| Property Type | Prime Areas (₦/m²) | Mid-Market Areas (₦/m²) |
|---|---|---|
| Apartments (1-3 bedroom) | ₦3,697,000+ | ₦800,000-₦1,500,000 |
| Terrace/Duplex | ₦2,500,000-₦4,000,000 | ₦900,000-₦1,800,000 |
| Detached Houses | ₦1,385,000-₦5,000,000 | ₦600,000-₦1,000,000 |
| Serviced Units (all types) | +10-30% premium | +10-30% premium |
| Budget Areas (all types) | ₦200,000-₦500,000 | ₦200,000-₦400,000 |
Serviced properties command significant premiums due to amenities like 24-hour electricity, security, waste management, and sometimes gym facilities or swimming pools.
Which neighborhoods rank as the most expensive, the best up-and-coming, and the most budget-friendly right now?
Lagos' most expensive neighborhoods center on Lagos Island, with Ikoyi, Banana Island, and Victoria Island leading prime residential markets.
**Most Expensive Areas:**1. Banana Island - Ultra-luxury enclave with properties exceeding ₦5 million per square meter2. Ikoyi - Established high-end residential area with mature infrastructure3. Victoria Island - Commercial and residential hub with premium apartments4. Lekki Phase 1 - Planned community with modern amenities5. Eko Atlantic - New city development with international standards**Up-and-Coming Areas:**1. Lekki-Epe corridor (Sangotedo, Ajah) - Rapid infrastructure development2. Yaba - Tech hub with young professional demand3. Surulere - Established mainland area with improvement projects4. Gbagada - Growing middle-class neighborhood5. Ibeju-Lekki - Future growth driven by deep seaport and airport projects**Budget-Friendly Areas:**1. Ikorodu - Affordable with improving transport links2. Ajah (outer areas) - Lower-cost Lekki corridor options3. Ikota - Developing area with value opportunities4. Badore - Emerging residential area5. Ayobo/Ipaja - Mainland budget options with growth potential
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What are the average asking and transaction prices per square meter by area, and how do they vary with property size?
Lagos property prices per square meter vary significantly by location, with prime areas commanding over ₦3.7 million per square meter while budget areas start from ₦200,000 per square meter.
In prime areas like Ikoyi and Victoria Island, asking prices typically range from ₦3.7-5 million per square meter, with actual transaction prices closing 5-10% below list prices due to negotiation. Mid-market areas including Yaba, Surulere, and parts of Lekki see prices between ₦800,000-₁.5 million per square meter.
Property size inversely affects price per square meter, with larger units offering better value per square meter but higher absolute costs. A 150-square-meter apartment typically costs 10-15% less per square meter than a 75-square-meter unit in the same building due to economies of scale.
Apartments on higher floors command premiums of 5-15% per square meter over ground floor units, while serviced properties add 10-30% to base prices depending on amenity levels. New builds generally price 15-25% above comparable resale properties in the same area.
What is the typical total purchase cost at common price points once you include agency fees, legal fees, title/registry costs, taxes, and closing charges?
Total property purchase costs in Lagos exceed the sale price by 15-25% due to various fees and charges required to complete transactions.
**Breakdown of Additional Costs:**- Legal fees: 5-10% of sale price- Agency fees: 5-10% of sale price - Stamp duty: 0.75-1% of sale price- Registration and governor's consent: 3-5% of sale price- Title documentation fees: 8-15% in Lagos State- Survey and valuation: Variable based on property size and location
For a ₦50 million property purchase, buyers should budget ₦60-62.5 million total outlay. A ₦100 million property would require approximately ₦115-125 million including all costs. These fees are typically paid in stages throughout the transaction process, with legal and agency fees often due at contract signing.
Foreign buyers face additional complexity with Certificate of Occupancy requirements and may need legal structures through Nigerian companies, potentially adding 2-5% in setup and compliance costs.
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What mortgage options are realistically available to local and foreign buyers today, and what do monthly payments look like at current rates for typical loan sizes?
Mortgage options in Lagos vary significantly between Nigerian citizens, diaspora Nigerians, and foreign nationals, with interest rates ranging from 9-25% depending on buyer status and loan terms.
**For Nigerian Citizens:**Local banks and mortgage institutions offer rates of 15-25% with 20-30% down payments required. Loan terms typically extend 15-20 years maximum. Monthly payments on a ₦40 million loan at 20% interest over 15 years would be approximately ₦540,000 per month.
**For Diaspora Nigerians:**The Diaspora National Housing Fund provides more favorable terms at 9-12% interest rates with 30% down payments and 10-20 year terms. On the same ₦40 million loan at 10% over 15 years, monthly payments would be approximately ₦430,000.
**For Foreign Nationals:**Direct mortgage options are extremely limited, with most foreign buyers required to purchase through cash or financing arrangements in their home countries. Some foreign buyers establish Nigerian companies to access local financing, though this adds complexity and costs.
Most lenders require debt-to-income ratios below 40% and proof of stable income. Pre-approval processes typically take 4-8 weeks with extensive documentation requirements including bank statements, employment letters, and property valuations.
If you plan to live in the property, which areas and property types offer the smartest value-for-money today?
For owner-occupiers seeking value-for-money in Lagos, mid-market areas like Yaba, Gbagada, and Surulere offer the best combination of amenities, infrastructure, and affordability.
Yaba stands out as Lagos' emerging tech hub with improved infrastructure, reliable power supply in many developments, and proximity to business districts. Property prices range ₦800,000-1.2 million per square meter for quality apartments with modern amenities.
Sangotedo and Ajah in the Lekki corridor provide excellent value for buyers seeking newer construction with estate-style amenities. These areas offer 2-3 bedroom apartments from ₦25-45 million with service charges, security, and often backup power systems.
For families prioritizing space and schools, Surulere and Gbagada provide established neighborhoods with good educational institutions, healthcare facilities, and transport links. Detached houses and duplexes offer better value per square meter than equivalent properties in prime areas.
Avoid areas like Ibeju-Lekki unless you can wait 5-10 years for infrastructure completion, as current residents face challenges with power, water, and transport access despite lower purchase prices.
If you plan to rent long-term, where are the strongest yields after service charges, vacancy, and taxes?
Long-term rental yields in Lagos are strongest in mid-market areas where rental demand remains consistent while purchase prices haven't reached prime area levels.
Yaba delivers some of the best net rental yields at 6-8% annually, driven by young professionals working in nearby tech companies and financial institutions. Service charges typically run ₦50,000-100,000 annually for apartments, while vacancy rates remain low due to consistent demand.
Surulere and Gbagada offer similar yield potential with established rental markets and lower service charges than newer developments. These areas attract stable tenants including families and established professionals who tend to stay longer, reducing turnover costs.
Parts of the Lekki corridor, particularly Sangotedo and Ajah, can achieve 5.5-7% yields, though service charges are higher due to estate amenities and security requirements. Vacancy risk is also higher as the area is still developing its commercial and employment base.
Avoid ultra-prime areas like Banana Island and parts of Ikoyi where yields often fall below 5% due to high purchase prices relative to achievable rents. These areas work better for capital appreciation strategies than rental income generation.
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.
If you plan to do short-term rentals, which areas, unit sizes, and amenities perform best on occupancy and nightly rates under current rules?
Short-term rentals in Lagos perform best in Victoria Island, Lekki Phase 1, and Ikoyi, where business travelers and tourists pay premium rates for quality accommodations.
One and two-bedroom serviced apartments with 24-hour power, security, WiFi, and kitchen facilities achieve the highest occupancy rates. Nightly rates in prime areas range ₦25,000-75,000 for quality units, with annual gross yields potentially reaching 10-14% for well-managed properties.
Yaba has emerged as a secondary short-term rental market, particularly for tech workers and young professionals attending conferences or training programs. Lower acquisition costs and service charges can generate better net yields despite lower nightly rates of ₦15,000-35,000.
Properties with backup generators, reliable internet, and modern furnishing command significant premiums. Proximity to airports (for Lekki properties) or business districts (for Island properties) drives higher occupancy rates and reduces seasonal variation.
Regulatory environment remains relatively favorable, though some luxury estates have introduced restrictions on short-term rentals. Professional management services typically charge 15-25% of gross revenue but significantly improve occupancy rates and guest satisfaction.
If you plan to buy-to-resell, where is there clear evidence of liquidity and price growth drivers over the next 12–24 months?
Buy-to-resell strategies work best in areas with active transaction markets and clear infrastructure-driven growth catalysts over the next 12-24 months.
Lekki Phase 1 offers the most liquid resale market with consistent demand from both end-users and investors. New builds and terraces regularly transact, providing clear price benchmarks and faster sale periods of 3-6 months for well-priced properties.
Ibeju-Lekki presents compelling growth drivers including the Lekki Deep Seaport completion, new international airport construction, and planned industrial zones. Land and development opportunities show strongest potential, though liquidity remains limited until infrastructure projects complete.
Yaba benefits from ongoing commercial development and its status as Lagos' tech hub, creating consistent demand for modern residential properties. The area offers better liquidity than emerging areas while maintaining growth potential.
Avoid ultra-prime areas like Banana Island where oversupply risk is high and buyer pools are limited. Mid-market areas with infrastructure improvements and employment growth offer better combinations of liquidity and appreciation potential.
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Can we show three concrete example purchases (entry-level, mid-market, prime) with expected total costs, rental yields, and financing scenarios?
| Category | Entry-Level | Mid-Market | Prime |
|---|---|---|---|
| Location | Sangotedo | Yaba | Ikoyi |
| Property Type | 2BR Apartment | 3BR Terrace | 4BR Detached |
| Sale Price | ₦28 million | ₦45 million | ₦350 million |
| Total Cost (incl. fees) | ₦33 million | ₦53 million | ₦420 million |
| Annual Rental Income | ₦1.8 million | ₦3.6 million | ₦20 million |
| Gross Rental Yield | 5.5% | 6.8% | 4.7% |
| Down Payment (30%) | ₦8.4 million | ₦13.5 million | ₦105 million |
| Monthly Mortgage Payment | ₦175,000 | ₦280,000 | ₦2.2 million |
*Calculations assume 15% total closing costs, 30% down payment, 15-year mortgage term at 10% interest rate. Rental yields reflect current market rates and do not account for service charges, taxes, or vacancy periods.*
How have prices changed versus 5 years and 1 year ago, what's the base-case forecast for 1, 5, and 10 years ahead, and how does Lagos compare with peer cities like Accra, Nairobi, and Johannesburg on price per square meter and yield?
Lagos property prices have shown exceptional growth over recent years, with 39.5% increases in 2024 and 5-15% year-to-date growth in 2025 depending on market segment.
Over the past five years, land and entry-level properties in areas like Ibeju-Lekki and Epe have increased 200-300%, while prime areas have seen more modest but still substantial 40-80% appreciation. This growth reflects infrastructure development, population expansion, and limited supply in desirable areas.
**Price Forecasts:**- 1 year ahead: 5-15% annual growth citywide expected through 2026- 5 years ahead: Infrastructure corridors likely to see continued above-average appreciation- 10 years ahead: Maturation of transportation and utility infrastructure should stabilize price growth to 3-8% annually
**Regional Comparisons (as of September 2025):**Lagos prime areas at ₦3.7 million per square meter are expensive for West Africa but remain below Cape Town or central Nairobi levels. Rental yields in Lagos mid-market areas (6-8%) exceed most comparable African cities, while prime area yields (4-5%) are competitive with regional luxury markets.
Accra and Nairobi offer similar yield profiles but with different risk characteristics. Johannesburg provides better established property rights and financing but lower growth potential. Lagos stands out for yield potential and growth prospects, though with higher transaction complexity and infrastructure challenges.
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 opportunities across price segments, from budget-friendly areas starting at ₦200,000 per square meter to prime locations exceeding ₦3.7 million per square meter.
Success in Lagos real estate requires understanding total purchase costs (15-25% above sale price), local financing options, and choosing areas aligned with infrastructure development and employment growth patterns.
Sources
- BuyLetLive Nigeria Price Index Report 2024
- The AfricanVestor - Average House Prices Nigeria
- Emerald Insight - Lagos Property Market Data Challenges
- The AfricanVestor - Lagos Price Forecasts
- The AfricanVestor - Lagos Real Estate Trends
- BusinessDay - Most Expensive Neighbourhoods Africa 2025
- LinkedIn - Most Expensive Lagos Neighborhoods
- Abiterra - Cost of Buying Property
- The AfricanVestor - Invest Nigeria Real Estate
- The AfricanVestor - Nigeria Price Forecasts