How much does land actually cost in Lagos now?

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THE AFRICANVESTOR

A team specialized in real estate investing in African countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Nigeria. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The AfricanVestor, we explore the Nigerian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Lagos, Abuja, and Port Harcourt. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What is the current average price per square meter of land in Lagos?

As of September 2025, land prices in Lagos range from ₦200,000 per square meter in emerging neighborhoods to over ₦3.5 million per square meter in ultra-premium areas.

The Lagos land market shows extreme price variation depending on location, with Lagos Island commanding the highest premiums. Emerging areas like Ibeju-Lekki and Epe offer entry points around ₦200,000-₦350,000 per square meter, while established Mainland neighborhoods like Yaba and Surulere typically range between ₦300,000-₦500,000 per square meter.

Premium Mainland locations such as Ikeja GRA and Magodo command prices between ₦500,000-₦850,000 per square meter. The most expensive neighborhoods remain concentrated on Lagos Island, where standard residential land in Victoria Island starts around ₦1 million per square meter, while ultra-premium waterfront plots in Banana Island can exceed ₦3.5 million per square meter.

These prices reflect the significant infrastructure development, population growth, and economic activity concentrated in Lagos as Nigeria's commercial capital.

It's something we develop in our Nigeria property pack.

How do land prices differ between Lagos Mainland and Lagos Island?

Lagos Island consistently commands premium prices that are 3-5 times higher than comparable Mainland locations, with the price gap widening in 2025.

Lagos Island neighborhoods like Ikoyi, Victoria Island, and Banana Island represent Nigeria's most expensive real estate, with land prices ranging from ₦1 million to ₦3.5 million per square meter. These areas benefit from proximity to the central business district, better infrastructure, and exclusivity factors that drive premium pricing.

Lagos Mainland offers more accessible pricing across diverse neighborhoods. High-end Mainland areas like Ikeja GRA and Magodo range between ₦500,000-₦850,000 per square meter, while emerging Mainland corridors like Gbagada and parts of Surulere fall between ₦300,000-₦500,000 per square meter.

The price differential reflects infrastructure quality, traffic accessibility, proximity to commercial centers, and development restrictions. Lagos Island's limited land supply and premium positioning continue to drive this substantial price gap.

Mainland areas offer better value for money, especially for investors seeking rental yields or individuals prioritizing space over prestige location.

Which Lagos neighborhoods have the highest land values?

Banana Island leads Lagos with land prices reaching ₦2.3-₦3.5 million per square meter, making it one of Africa's most expensive residential areas.

Neighborhood	Price Range (₦ per sqm)	Key Features
Banana Island	₦2.3 - ₦3.5 million	Ultra-luxury, waterfront, gated island
Ikoyi Premium	₦1.5 - ₦3 million+	Diplomatic district, luxury towers
Victoria Island CBD	₦1 - ₦2 million+	Commercial hub, banking district
Eko Atlantic City	₦2,000 - ₦3,500 USD/sqm	New smart city, waterfront
Lekki Phase 1	₦850,000 - ₦1.2 million	Planned development, infrastructure
Ikeja GRA	₦500,000 - ₦850,000	Government district, established
Magodo	₦500,000 - ₦850,000	Gated estates, family-oriented

How have Lagos land prices changed over the past year?

Lagos land prices increased by an average of 5-15% in 2025, following a dramatic 39.5% surge in 2024 driven by infrastructure development and urbanization.

The 2024 price surge represented one of the steepest annual increases in Lagos real estate history, fueled by major infrastructure projects including the Lekki Deep Sea Port, Fourth Mainland Bridge construction, and new airport development. These projects created significant appreciation in corridor areas and emerging neighborhoods.

The 2025 growth rate of 5-15% represents a moderation from 2024's explosive growth, though prices continue rising steadily across all market segments. Emerging areas like Ibeju-Lekki and Epe have experienced the strongest appreciation, with some corridors showing up to 300% growth over the past decade.

Premium Island neighborhoods have shown more measured growth in 2025, with established areas like Ikoyi and Victoria Island appreciating at the lower end of the 5-15% range due to their already elevated price levels.

The appreciation trend reflects continued population growth, limited land supply, and ongoing infrastructure investment that enhances connectivity and development potential across Lagos.

What is the price difference between residential and commercial land in Lagos?

Commercial land in Lagos commands premium prices that are typically 20-30% higher than residential land in the same area due to zoning restrictions and business demand.

Residential land prices across Lagos range from ₦95,000 per square meter in far emerging areas to ₦1.2 million per square meter in premium neighborhoods. Commercial land in the same areas typically ranges from ₦200,000 to over ₦2 million per square meter, depending on the specific location and commercial zoning designation.

The premium for commercial land reflects several factors including stricter zoning requirements, higher development standards, greater infrastructure demands, and the income-generating potential of commercial properties. Areas with mixed-use zoning often command prices between pure residential and commercial rates.

Lagos Island commercial districts show the highest premiums, with prime commercial plots in Victoria Island's central business district reaching ₦4 million per square meter. Mainland commercial corridors like major roads in Ikeja and Yaba typically show smaller but consistent premiums over residential pricing.

It's something we develop in our Nigeria property pack.

How do Lagos zoning regulations affect land prices?

Lagos zoning regulations create significant price differentials through strict residential, mixed-use, and commercial distinctions that limit land use flexibility and development potential.

The Lagos State zoning system divides the city into distinct zones with specific building requirements, density limits, and use restrictions. Prime Island zones enforce the highest regulatory standards, requiring greater setbacks, infrastructure compliance, and environmental assessments that increase both land costs and development expenses.

Waterfront and luxury zones carry additional building codes and environmental compliance requirements that can add 15-25% to total development costs. These regulations protect property values but create barriers that limit supply and drive up prices in premium areas.

Commercial zones require specific infrastructure standards including wider roads, parking requirements, and utility capacity that make commercial land more expensive to develop and maintain. Mixed-use zoning offers flexibility but often requires higher compliance standards than pure residential zones.

The zoning system also includes geographic fee structures with four zones (A-D) that create different cost scales for survey fees, planning approvals, and registration processes, directly impacting the total cost of land acquisition across different areas.

How much more expensive is Lagos land compared to other Nigerian cities?

Lagos land prices are 2-4 times higher than other major Nigerian cities, with premium Lagos neighborhoods ranking among Africa's most expensive real estate markets.

Comparing Lagos to Nigeria's other major cities shows significant price premiums. Abuja's high-end areas like Maitama and Asokoro typically range between ₦500,000-₦1.5 million per square meter, while similar quality areas in Lagos Island command ₦1.5-₦3.5 million per square meter. Port Harcourt's premium areas rarely exceed ₦800,000 per square meter, and Ibadan's best neighborhoods top out around ₦400,000 per square meter.

Even Lagos's emerging areas like Ibeju-Lekki at ₦200,000-₦350,000 per square meter often cost more than established neighborhoods in other Nigerian cities. This reflects Lagos's unique position as Nigeria's commercial capital, largest city, and primary port of entry.

The price differential has widened over the past decade as Lagos infrastructure development has accelerated while other cities have seen more modest growth. Lagos benefits from concentrated economic activity, international business presence, and continuous infrastructure investment that other Nigerian cities cannot match.

For perspective, Lagos's ultra-premium areas like Banana Island and Ikoyi compete with Johannesburg's Sandton and Cairo's New Capital in terms of pricing, making them truly continental-level luxury markets.

What are recent prime land sale prices in Lagos?

Recent prime land sales in Lagos show record-breaking transactions, with Banana Island plots selling for ₦1.15-₦3.5 billion depending on size and waterfront access.

Location	Plot Size Range	Recent Sale Prices
Banana Island	500-1000 sqm	₦1.15B - ₦3.5B
Ikoyi Premium	1000+ sqm	₦1B+
Victoria Island CBD	1000+ sqm	₦1B+
Lekki Phase 1	Standard plots	₦100M - ₦200M
Eko Atlantic	Canal/Boulevard	$2,000-$3,500/sqm
Ikoyi Towers District	Development sites	₦800M - ₦1.5B
Victoria Island Residential	500-800 sqm	₦500M - ₦1B

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 is the cost difference between undeveloped land and land with infrastructure?

Land with existing infrastructure costs 2-4 times more than undeveloped land in the same area, reflecting the significant value of roads, utilities, and development readiness.

Undeveloped raw land across Lagos typically ranges from ₦200,000 to ₦1 million per square meter depending on location and basic accessibility. These prices reflect land without paved roads, utilities, drainage systems, or formal development infrastructure.

Serviced plots within gated estates or developed communities command substantial premiums, ranging from ₦850,000 to ₦3.5 million per square meter. These developments include paved roads, electricity connections, water systems, security infrastructure, and often recreational amenities.

The infrastructure premium reflects both the actual cost of development and the convenience factor for buyers who can begin construction immediately without utility installation delays. Estate developments also offer additional services like security, waste management, and maintenance that justify higher pricing.

In emerging areas like Ibeju-Lekki, the difference between raw land at ₦200,000 per square meter and serviced estate plots at ₦600,000-₦800,000 per square meter demonstrates the significant value of infrastructure development in Lagos's expanding corridors.

How do land prices compare between developed and developing areas in Lagos?

Developed Lagos areas command 3-10 times higher land prices than developing zones, with established estates ranging from ₦1-₦3.5 million per square meter versus ₦200,000-₦350,000 in emerging areas.

Fully developed areas like Banana Island, Ikoyi, and Victoria Island represent Lagos's premium tier with comprehensive infrastructure, established communities, and proximity to business districts. These areas command premium pricing due to scarcity, infrastructure maturity, and social prestige factors.

Developing zones like Ibeju-Lekki, Epe, and parts of Sangotedo offer significant value propositions with land prices starting around ₦200,000 per square meter. These areas benefit from ongoing infrastructure projects including the Lekki Deep Sea Port, new airport access roads, and planned smart city developments.

The price differential creates opportunities for investors willing to accept longer development timelines in exchange for higher appreciation potential. Developing areas often show 15-25% annual appreciation as infrastructure improves, while developed areas show steadier but lower growth rates.

It's something we develop in our Nigeria property pack.

What additional costs are involved in purchasing land in Lagos?

Land purchase costs in Lagos include substantial additional fees that typically add 15-25% to the base land price, including survey fees, legal costs, and government approvals.

1. **Survey and Documentation Fees**: ₦425,000-₦1.57 million for plots up to 700 square meters, depending on the geographic zone (A-D classification) 2. **Legal and Professional Fees**: Generally 5-10% of the total transaction value for legal representation and due diligence 3. **Government Consent and Registration**: ₦1-₦3 million typically for Governor's consent, Certificate of Occupancy processing, and title registration 4. **Stamp Duty and Transaction Taxes**: Approximately 2-3% of the transaction value for stamp duties and registration taxes 5. **Agency and Brokerage Commissions**: Usually 5-10% of the land value when using real estate agents or brokers

These additional costs can significantly impact the total investment required, particularly for smaller transactions where fixed fees represent a larger percentage of the total cost. The zone-based fee structure means that premium Island locations often carry higher processing costs than Mainland areas.

Buyers should also budget for potential infrastructure contributions, estate development fees in gated communities, and ongoing annual property taxes that vary by location and land use designation.

What ongoing development projects in Lagos could impact land prices soon?

Major infrastructure projects including the Lekki Deep Sea Port, Fourth Mainland Bridge, and new airport development are driving significant land price appreciation in corridor areas and emerging neighborhoods.

The Lekki Deep Sea Port project, now operational, continues to drive development along the Lekki-Epe corridor, with land prices in Ibeju-Lekki and surrounding areas showing strong appreciation. The port's logistics and industrial zones are creating demand for both commercial and residential development in previously underdeveloped areas.

The Fourth Mainland Bridge project will improve connectivity between Lagos Island and Mainland areas, potentially reducing the current price differential and making Mainland locations more attractive. Areas along the proposed bridge corridors are already showing anticipatory price increases.

New airport development and expansion projects are enhancing connectivity to international markets and driving development in airport corridor areas. Smart city projects in Lekki and Eko Atlantic City development continue to attract premium pricing and international investment.

These infrastructure investments typically create appreciation zones extending 5-10 kilometers from major projects, with the strongest impact on previously underserved areas that gain new connectivity and development potential.

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.

Sources

1. Average Price Per Square Meter Lagos Nigeria
2. Banana Island Land Prices 2025
3. Lagos Real Estate Market 2025 ROI Analysis
4. Most Expensive Estates in Lagos 2025
5. Lagos Islands Land Market Analysis
6. Most Expensive Neighbourhoods in Africa 2025
7. Lagos Nigeria Price Forecasts
8. Lagos Nigeria Property Market
9. Average Property Price Nigeria
10. Cost of Land Survey in Lagos