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Yes, the analysis of Lagos' property market is included in our pack
Thinking about buying a 3-bedroom apartment in Victoria Island? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Lekki or Ikoyi where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Lagos Property Pack.
Will property prices increase in Lagos in 2025?
Yes, property prices in Lagos are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Lagos remains one of the hottest cities in Africa for both domestic and international investors.
Sure, there are some economic bumps like inflation and rising interest rates, but the main drivers behind Lagos’s price growth aren’t going anywhere.
Demand, especially in the prime central areas, still outstrips supply by a mile, making any major price dips a long shot. And let’s not forget—Lagos’s status as a commercial and cultural hub keeps drawing in buyers from around the world.
Signals pointing to a property price increase in Lagos
Here are some factors suggesting prices could increase:
The ongoing urbanization and population growth in Lagos are expected to continue, leading to increased demand for housing. As more people move to the city for job opportunities, the pressure on the housing market is likely to drive prices up.
Infrastructure development projects, such as the expansion of the Lagos-Ibadan Expressway and the construction of the Fourth Mainland Bridge, are set to improve connectivity and accessibility, making certain areas more attractive and potentially increasing property values.
The government's focus on improving the ease of doing business in Nigeria is expected to attract more foreign investment, including in the real estate sector. This influx of capital could lead to increased demand for commercial and residential properties.
The rise of the tech industry and the establishment of tech hubs in Lagos are attracting young professionals and entrepreneurs, increasing the demand for modern housing solutions and potentially driving up property prices in tech-friendly neighborhoods.
Lagos's status as a financial and economic center in Africa continues to attract multinational companies and expatriates, boosting demand for high-end residential and commercial properties.
The limited availability of land for new developments in prime areas of Lagos is expected to keep supply constrained, which, coupled with steady demand, is likely to push property prices higher.
Signals pointing to a property price decrease in Lagos
Here are some factors suggesting prices could fall:
Economic instability and fluctuations in the Nigerian naira could impact purchasing power and deter potential buyers, leading to a slowdown in the property market.
High inflation rates and increased cost of living may reduce disposable income for many residents, potentially decreasing demand for property purchases.
Rising interest rates could make mortgage financing more expensive, discouraging potential homebuyers and investors from entering the market.
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If property prices go up in Lagos, how much would they increase by?
If real estate prices in Lagos were to rise in 2025, the increase would likely be between 5% to 10% of their 2024 values.
Typically, real estate in dynamic, emerging markets like Lagos appreciates by approximately 5% to 10% annually over the long term. However, fluctuations can occur depending on factors such as location, economic conditions, and property type.
It means that, if you spot a lovely 2-bedroom apartment in Victoria Island for 50 million Naira today, don't be surprised if it's priced between 52.5 million and 55 million Naira this time next year.
To give you a better understanding, here is a table that shows 7 types of Lagos real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 5%, 7%, and 10%.
| Type of Property | Average Price in 2024 (₦) | Price in 2025 (5% increase) | Price in 2025 (7% increase) | Price in 2025 (10% increase) |
|---|---|---|---|---|
| Apartment (60 sqm / 646 sqft) | ₦30,000,000 | ₦31,500,000 | ₦32,100,000 | ₦33,000,000 |
| Modern Apartment (75 sqm / 807 sqft) | ₦45,000,000 | ₦47,250,000 | ₦48,150,000 | ₦49,500,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | ₦100,000,000 | ₦105,000,000 | ₦107,000,000 | ₦110,000,000 |
| Studio (30 sqm / 323 sqft) | ₦15,000,000 | ₦15,750,000 | ₦16,050,000 | ₦16,500,000 |
| Loft (80 sqm / 861 sqft) | ₦60,000,000 | ₦63,000,000 | ₦64,200,000 | ₦66,000,000 |
| Townhouse (150 sqm / 1,615 sqft) | ₦150,000,000 | ₦157,500,000 | ₦160,500,000 | ₦165,000,000 |
| Investment Property (50 sqm / 538 sqft) | ₦25,000,000 | ₦26,250,000 | ₦26,750,000 | ₦27,500,000 |
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Everything you need to know is included in our Property Pack for Lagos (Nigeria)
If real estate prices go up in Lagos, which areas are likely to see the biggest increases?
Today, people who want to move to Lagos seek the vibrant culture and modern amenities, which Victoria Island delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Yaba has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Lagos market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Victoria Island | High | Recent development of luxury housing projects and its increasing appeal to international businesses and expatriates, driving demand. |
| Ikoyi | High | Expected rise due to limited housing stock, upcoming renovations to high-end properties, and growing demand for prime real estate in Lagos. |
| Lekki Phase 1 | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Ikeja GRA | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Yaba | Medium-High | Tech hub developments and recent construction of new educational institutions are increasing its attractiveness for young professionals, pushing prices upward. |
| Surulere | Medium | Investment in local infrastructure, such as road expansions and renovation of public spaces, is boosting long-term value. |
| Ajah | Medium-High | With new commercial and residential spaces being developed, this growing neighborhood is seeing increased demand from both residents and investors. |
| Eko Atlantic | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Banana Island | High | Its exclusivity and new luxury developments make it increasingly attractive to wealthy buyers seeking premium housing. |
| Maryland | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Apapa | Medium | As new commercial developments are launched, demand for residential properties among professionals is expected to further increase property values. |
| Ilupeju | Medium | Upcoming infrastructure projects and high-profile commercial developments are driving a renewed focus on this central location. |
-The best areas to buy a property in Lagos
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation?
In 2025, Lagos real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Lagos, such as Lekki and Ikeja, are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Lagos, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Lagos's growing commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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