Authored by the expert who managed and guided the team behind the Nigeria Property Pack
Yes, the analysis of Lagos' property market is included in our pack
Lagos property prices in 2025 range from ₦15 million for basic apartments in the outskirts to over ₦1 billion for luxury detached houses in prime areas like Ikoyi and Banana Island.
The Lagos real estate market offers diverse options including apartments, terraced houses, detached homes, land plots, and off-plan developments, with prices varying dramatically based on location, property type, and infrastructure proximity. Areas like Lekki-Epe corridor and Ibeju-Lekki are experiencing rapid appreciation due to major infrastructure projects, while budget-friendly options remain available in areas like Ikorodu and Badagry.
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 have surged 39.5% in 2024, with apartments ranging from ₦15-150 million and luxury detached houses reaching ₦1 billion in prime areas.
The most expensive neighborhoods include Ikoyi, Banana Island, and Victoria Island, while up-and-coming areas like Ibeju-Lekki offer growth potential at more accessible prices.
| Property Type | Price Range (₦) | Key Areas |
|---|---|---|
| Studio/1-bed Apartment | 15-50 million | Ikorodu, Surulere, Yaba |
| 2-3 bed Apartment | 35-150 million | Lekki, Ikeja, Victoria Island |
| Terraced/Duplex | 50-500 million | Lekki Phase 1, Chevron, Orchid |
| Detached House | 150 million-1 billion+ | Ikoyi, Banana Island, Old Ikoyi |
| Land (per plot) | 1.5-100+ million | Ikorodu (low) to Ikoyi (high) |
| Off-plan Properties | 20-30% below completed | Ibeju-Lekki, Epe, emerging areas |
What are the main property types available in Lagos right now and what do they cost?
The Lagos property market in September 2025 offers five main property categories with distinct price ranges and investment characteristics.
Apartments represent the most accessible entry point, ranging from ₦15 million for basic studios in areas like Ikorodu to ₦150 million for luxury units in Victoria Island or Ikoyi. These properties typically offer the highest rental yields due to strong demand from young professionals and expatriates.
Terraced houses and duplexes form the middle market segment, priced between ₦50-500 million depending on location and specifications. Popular areas like Lekki Phase 1 and Chevron offer family-sized terraces at ₦190-350 million, often including boys' quarters and modern amenities.
Detached houses represent the luxury segment, starting from ₦150 million in emerging areas and reaching over ₦1 billion in prime locations like Banana Island and Old Ikoyi. These properties typically feature swimming pools, gyms, and extensive grounds.
Land purchases offer the greatest flexibility for custom development, with prices ranging from ₦1.5 million per plot in Ikorodu to over ₦100 million in prime districts, depending on title documentation and infrastructure access.
Off-plan developments provide cost savings of 20-30% compared to completed units, with flexible payment plans making them attractive to both investors and end-users, particularly in emerging corridors like Ibeju-Lekki.
Which Lagos neighborhoods offer the best value at different price points?
Lagos neighborhoods fall into three distinct categories based on current pricing and growth potential as of September 2025.
The most expensive areas include Ikoyi, Banana Island, and Victoria Island, where apartments start at ₦150 million and luxury detached houses can exceed ₦1 billion. These areas command premium pricing due to established infrastructure, security, and proximity to the central business district.
Up-and-coming neighborhoods like Ibeju-Lekki, Epe, Sangotedo, and Yaba are experiencing 10-15% annual appreciation driven by major infrastructure projects including the new international airport, deep-sea port, and Fourth Mainland Bridge. Properties in these areas offer significant growth potential at more accessible entry points.
Budget-friendly areas such as Ikorodu, Badagry, and Agbado provide entry-level options with apartments from ₦15-30 million and land from ₦1.5 million per plot. While these areas require longer commutes, they offer the lowest barrier to homeownership for first-time buyers.
It's something we develop in our Nigeria property pack.
| Neighborhood Category | Specific Areas | Price Range |
|---|---|---|
| Premium/Established | Ikoyi, Banana Island, Victoria Island | ₦150 million - ₦1 billion+ |
| Luxury Growth | Lekki Phase 1, Chevron, Ikate | ₦190-750 million |
| Emerging/High Growth | Ibeju-Lekki, Epe, Sangotedo, Yaba | ₦35-200 million |
| Mid-tier Established | Surulere, Ikeja, Ojodu-Berger | ₦35-100 million |
| Budget-Friendly | Ikorodu, Badagry, Agbado | ₦15-50 million |
What are specific sale prices for different property sizes in top areas?
Recent transactions in Lagos' most sought-after neighborhoods provide clear benchmarks for different property configurations as of September 2025.
In Lekki's Orchid area, newly built 4-bedroom semi-detached houses of 250-300 sqm with boys' quarters are selling for around ₦190 million, representing excellent value for family buyers seeking modern amenities in a secure environment.
Chevron area commands higher premiums, with 5-bedroom detached duplexes spanning 350-400 sqm and featuring swimming pools selling for ₦350 million, reflecting the area's established infrastructure and expatriate demand.
Ikate represents the luxury end of emerging areas, with 4-bedroom terraced duplexes of 250-280 sqm ranging from ₦325 million to ₦1.8 billion depending on estate quality and specific location within the district.
Old Ikoyi sets the benchmark for ultra-luxury, with 4-bedroom maisonettes of 300-400 sqm featuring gyms and pools commanding ₦1.5 billion, reflecting the area's prestige and central location.
Emerging areas like Igando in Ibeju-Lekki offer significant value, with shell 4-bedroom detached houses of 300-350 sqm available from ₦60-80 million, particularly attractive for buyers willing to complete finishing works.
How have Lagos property prices moved over recent years?
Lagos property prices experienced dramatic acceleration in 2024, with values jumping 39.5% citywide due to inflation, currency devaluation, and persistent housing demand.
The five-year period from 2020-2024 saw many areas nearly double in value, with Ibeju-Lekki land experiencing over 100% appreciation as infrastructure announcements drove speculative buying and genuine development interest.
The most recent 12-month period through September 2025 shows continued momentum with 5-15% additional gains, led by emerging corridors along the Lekki-Epe axis where major projects are reaching completion phases.
Central areas like Ikoyi and Victoria Island experienced more moderate but steady growth of 8-12% annually, reflecting their mature market status and limited supply of new developments.
Current forecasts suggest continued appreciation through 2026, though at more sustainable rates of 10-20% annually, depending on macroeconomic stability and infrastructure project delivery timelines.
Don't lose money on your property in Lagos
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What are the total costs beyond the purchase price when buying property in Lagos?
The total acquisition cost for Lagos property extends significantly beyond the advertised purchase price, with additional fees typically adding 8-15% to your investment.
Agency fees range from 1-5% of the purchase price, with higher-end properties often commanding higher commission rates due to specialized marketing requirements and international buyer services.
Legal fees typically consume 1-2% of the purchase price and cover title verification, contract review, and completion procedures, with experienced property lawyers charging premium rates for complex transactions involving foreign buyers or corporate entities.
Survey and valuation costs usually range from ₦250,000-500,000 depending on property size and location, with additional engineering inspections recommended for older properties or those in flood-prone areas.
Title registration and transfer taxes can reach 2-5% combined, varying by property type and location, with stamp duty, consent fees, and registration charges all contributing to this total burden.
Luxury estates and serviced developments impose ongoing annual service charges of ₦1,000-5,000 per square meter, significantly impacting long-term ownership costs and requiring careful budgeting for maintenance, security, and amenities.
What financing options are available for Lagos property purchases?
Lagos property financing in September 2025 involves three primary channels, each with distinct requirements and cost structures.
Commercial bank mortgages require 20-30% down payments with interest rates ranging from 17-25% annually over 15-25 year terms, plus origination fees of 1-3%, resulting in effective APRs of 20-25% for most borrowers.
National Housing Fund (NHF) schemes offer reduced rates of 6-9% with longer repayment periods, but impose strict qualification criteria including minimum employment duration, salary thresholds, and property value limits that exclude many luxury purchases.
Developer financing plans provide the most flexible options for off-plan purchases, often requiring no traditional down payment but structuring payments over construction periods, though buyers face completion risk and limited legal recourse for delays.
Most successful property purchases combine multiple financing sources, with buyers contributing 30-50% cash, utilizing bank mortgages for primary funding, and potentially accessing developer payment plans for off-plan components.
Foreign buyers face additional restrictions, typically requiring 100% cash purchases or demonstrating substantial Nigerian income sources to qualify for local financing programs.
Which areas offer the best lifestyle balance for owner-occupiers?
Selecting the optimal Lagos neighborhood for owner-occupiers requires balancing commute convenience, security, infrastructure reliability, and long-term value retention.
Yaba emerges as the top choice for young professionals, offering reasonable commutes to Lagos Island, strong internet connectivity for tech workers, vibrant social scenes, and rapid property appreciation driven by its growing reputation as Nigeria's Silicon Valley.
Lekki Phase 1 provides the best option for expatriate families, featuring international schools, reliable power supply, flood-resistant elevation, and strong security infrastructure, though at premium pricing that reflects these advantages.
Surulere offers excellent value for established professionals, combining central location with reasonable pricing, good school access, and stable property values, though requiring careful area selection to avoid flooding risks.
Ikeja GRA suits business executives needing airport proximity, offering mature neighborhoods with reliable utilities, good security, and steady property appreciation, plus reasonable access to both Lagos Island and mainland business districts.
For maximum future appreciation potential, Ibeju-Lekki provides owner-occupiers with ground-floor access to Lagos's next growth phase, though requiring longer current commutes and patience for infrastructure completion.
What returns can I expect from short-term rental properties in Lagos?
Short-term rental properties in Lagos generate strong returns in select neighborhoods, with net yields of 8-10% achievable after all operating expenses for well-positioned and furnished units.
Victoria Island and Ikoyi command the highest nightly rates due to business traveler and expatriate demand, with furnished 2-bedroom apartments earning ₦25,000-50,000 per night during peak periods, though experiencing seasonal fluctuations.
Lekki Phase 1 attracts both business and leisure travelers, with serviced apartments generating consistent occupancy rates above 70% and nightly rates of ₦20,000-35,000 for quality 2-3 bedroom units.
Yaba's tech hub status creates unique demand for extended-stay accommodations, with monthly rates of ₦500,000-1,200,000 for furnished apartments appealing to visiting professionals and startup employees.
Operating costs significantly impact returns, including annual service charges of up to ₦5,000 per square meter, professional management fees of 15-20% of gross revenue, and furnishing/maintenance reserves of 5-10% of annual income.
It's something we develop in our Nigeria property pack.
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 rental yields for long-term rental properties?
Long-term rental properties in Lagos generate net yields of 6-8% for well-selected properties, with significant variation based on location, property type, and management quality.
Central areas like Ikoyi and Victoria Island command annual rents of ₦2-5 million for 1-bedroom units and ₦5-12 million for 3-bedroom apartments, though high service charges and maintenance costs reduce net yields to the lower end of the range.
Mid-tier areas like Surulere and Ikeja offer better yield potential with 2-bedroom apartments renting for ₦1.5-3 million annually and lower ongoing costs, resulting in net yields closer to 7-8% for well-maintained properties.
Budget-friendly areas like Ikorodu provide strong cash flow with 2-bedroom units renting for ₦300,000-600,000 annually and minimal service charges, though requiring careful tenant screening and property management.
Vacancy rates typically range from 10-20% depending on area and property quality, with higher-end areas experiencing longer vacancy periods but more reliable tenants who pay annual rent in advance.
Maintenance and service charges can consume 20-30% of gross rental income in luxury developments, making careful cost analysis essential for accurate yield calculations.
Where should I look for property flipping opportunities in Lagos?
Lagos property flipping opportunities concentrate in areas with clear infrastructure catalysts and development timelines, offering 15-30% margins for well-timed investments.
The Lekki-Epe corridor represents the strongest opportunity, with the new international airport, deep-sea port, and coastal rail projects driving rapid value appreciation for properties purchased ahead of completion announcements.
Ibeju-Lekki offers multiple catalysts including the Dangote Refinery completion, Free Trade Zone expansion, and planned residential estates by major developers, making off-plan purchases particularly attractive for 1-3 year holding periods.
Areas around the planned Fourth Mainland Bridge terminals provide emerging opportunities, though requiring careful timing and local knowledge to identify optimal entry points before major announcements drive prices higher.
Yaba's technology sector growth creates ongoing flipping opportunities, particularly for properties near major tech companies and co-working spaces, with 6-18 month flip cycles possible for well-renovated units.
Key risks include title perfection delays, developer reliability for off-plan purchases, and infrastructure project delays that can extend holding periods and reduce margins, making due diligence absolutely critical for success.
What's the outlook for Lagos property prices over the next decade?
Lagos property prices are expected to continue growing through 2035, driven by population growth, infrastructure development, and Nigeria's economic expansion, though at varying rates depending on macroeconomic conditions.
The base-case scenario projects 10-15% annual appreciation through 2026, moderating to 8-12% annually through 2030 as the market matures and infrastructure projects reach completion phases.
Upside scenarios could deliver 20-25% annual gains if currency stabilization occurs, major infrastructure projects complete ahead of schedule, or international investor interest increases significantly due to policy reforms or regional stability improvements.
Downside risks include currency devaluation, security challenges, or oversupply in luxury segments that could limit appreciation to 3-8% annually, particularly affecting high-end properties in established areas.
Key indicators to monitor include Naira/USD exchange rates, Central Bank interest rate policies, major project completion timelines, active development pipeline announcements, and mortgage market accessibility for middle-class buyers.
The 10-year outlook remains positive due to Lagos's fundamental growth drivers including port expansion, industrial development, and demographic trends, though buyers should expect increased price volatility compared to mature international markets.
How do Lagos property prices compare with other major African cities?
Lagos property prices and rental yields compare favorably with peer African cities, though with higher volatility and currency risk considerations for international investors.
Compared to Abuja, Lagos offers stronger rental demand and capital appreciation due to its commercial hub status and diverse economy, with similar properties commanding 20-30% higher prices and rental rates in equivalent neighborhoods.
Against Accra, Lagos provides comparable rental yields of 6-8% but with higher absolute prices for luxury properties, making it more expensive for initial investment but potentially offering greater long-term appreciation due to superior infrastructure development.
Nairobi presents similar investment characteristics to Lagos with strong rental markets and infrastructure growth, though Lagos offers better yields in the mid-market segment while Nairobi provides more stable currency conditions for international buyers.
Johannesburg's luxury segment outprices Lagos significantly, but Lagos offers superior value in the middle market with better rental yields and growth potential, particularly in emerging areas where infrastructure development is driving rapid appreciation.
It's something we develop in our Nigeria property pack.
Overall, Lagos currently trades at a moderate premium to regional peers for high-end properties but offers competitive value for middle-market investments, with yield potential that compensates for higher risk profiles associated with currency and regulatory considerations.
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 in September 2025 offers diverse opportunities across all price segments, from ₦15 million entry-level apartments to billion-naira luxury estates, with infrastructure-driven growth creating significant appreciation potential in emerging corridors.
Success in Lagos real estate requires careful attention to location selection, infrastructure timing, total acquisition costs, and ongoing expenses, with yields of 6-10% achievable for well-positioned properties managed effectively.