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Yes, the analysis of Lagos' property market is included in our pack
Lagos property prices are rising significantly in 2025, with increases ranging from 5% to 15% depending on location and property type.
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Lagos residential property prices increased by 39.5% in 2024 and are expected to rise another 5-15% in 2025, driven by rapid urbanization, infrastructure development, and housing shortage.
The fastest-growing areas are Ibeju-Lekki and Epe with land appreciating over 300% in the last decade, while prime areas like Ikoyi and Victoria Island continue seeing steady growth despite higher base prices.
| Area/Metric | Current Price Range (2025) | Growth Forecast |
|---|---|---|
| Citywide Average | ₦50 million | 5-15% annually |
| Ikoyi (2-bed apartment) | ₦150 million+ | 5-8% annually |
| Victoria Island | ₦100-150 million | 5-8% annually |
| Lekki Phase 1 | ₦60-100 million | 10-15% annually |
| Ibeju-Lekki/Epe (land) | ₦5-40 million/plot | 15-20% annually |
| Yaba/Surulere | ₦35-45 million | 8-10% annually |
| Rental Yield (mid-market) | 6-8% | Stable |
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.
What are current property prices in Lagos as of June 2025?
Property prices in Lagos currently average around ₦50 million citywide, though this varies dramatically by location and property type.
In prime areas like Ikoyi, a two-bedroom apartment now costs ₦150 million or more, with luxury villas exceeding ₦1 billion. Victoria Island properties range from ₦100-150 million for quality apartments. Lekki Phase 1 offers more moderate pricing at ₦60-100 million for similar properties.
Mid-market areas like Yaba and Surulere provide more affordable options at ₦35-45 million for 2-3 bedroom flats. The most dramatic price movements have occurred in emerging areas like Ibeju-Lekki and Epe, where land prices have surged from ₦500,000 in 2019 to ₦5-40 million in 2025.
For context, a two-bedroom terrace house with a boys' quarter in Lekki that sold for ₦45-50 million in 2022 now commands ₦94 million in 2025. This represents nearly a doubling of prices in just three years.
Land remains the most volatile asset class, with plots in Ibeju-Lekki appreciating by over 300% in the past decade due to major infrastructure projects in the area.
How much have Lagos property prices increased in the last 12 months?
Lagos property prices surged by an impressive 39.5% in 2024, marking one of the strongest annual increases in recent years.
This dramatic rise was driven by multiple factors including high inflation (which peaked at 34.19% in mid-2024), increased construction costs, and persistent housing shortages. Construction material prices alone increased by over 100% between 2023 and 2024, with cement prices doubling from ₦4,000 to ₦8,800 per bag.
The luxury segment saw particularly strong growth, with properties in Ikoyi and Victoria Island experiencing price increases of 40-50% in some cases. Mid-market properties in areas like Lekki and Ajah rose by 35-40%, while emerging areas like Ibeju-Lekki saw land prices increase by up to 60%.
Short-let apartments experienced the most dramatic price growth, with increases exceeding 200% in some prime locations due to booming tourism and diaspora visits. This segment has become increasingly attractive to investors seeking higher rental yields.
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Which Lagos neighborhoods are experiencing the fastest price growth?
Ibeju-Lekki and Epe are experiencing the fastest property price growth in Lagos, with land values increasing by over 300% in the past decade.
These areas benefit from major infrastructure projects including the Dangote Refinery, Lekki Deep Sea Port, Lekki Free Trade Zone, and the proposed international airport. Land that sold for ₦500,000 per plot in 2015 now commands ₦5-40 million depending on exact location and proximity to these developments.
| Neighborhood | Annual Growth Rate | Key Growth Drivers |
|---|---|---|
| Ibeju-Lekki | 15-20% | Dangote Refinery, Deep Sea Port, proposed airport |
| Epe | 15-20% | Land banking opportunities, infrastructure development |
| Lekki (all phases) | 10-15% | Lekki-Epe Expressway expansion, commercial growth |
| Ajah | 10-15% | Commercial development, improved accessibility |
| Yaba | 8-10% | Tech hub growth, young professional demand |
| Victoria Island | 5-8% | Prime location, limited new supply |
| Ikoyi | 5-8% | Luxury market, expatriate demand |
The Lekki corridor continues to see consistent double-digit annual growth, particularly along the Lekki-Epe Expressway. Areas like Sangotedo have seen land prices more than double between 2021 and 2023.
Even established prime areas like Victoria Island and Ikoyi continue to appreciate, though at slower rates due to their already high base prices and some supply saturation in the luxury segment.
What property types are seeing the biggest price increases in 2025?
Short-let apartments are experiencing the most dramatic price increases in Lagos, with values surging by over 200% in prime locations during 2024.
This boom is driven by increased tourism, diaspora visits, and the growing preference for flexible accommodation options. Properties suitable for short-let conversions in areas like Lekki, Victoria Island, and Ikoyi are commanding premium prices as investors seek to capitalize on rental yields of 10-15% annually.
Luxury properties including duplexes and detached houses have seen prices double in three years in prime areas. However, this segment is beginning to show signs of oversupply, with rental yields dropping to 3-5% compared to 6-8% for mid-market properties.
Mid-range apartments maintain the strongest fundamental demand, particularly 2-3 bedroom units in areas like Lekki, Yaba, Surulere, and Ikeja. These properties offer stable appreciation of 10-15% annually with rental yields of 6-8%.
Land in emerging areas represents the highest capital appreciation potential, with plots in Ibeju-Lekki and Epe increasing 10-40 times in value over the past decade. This makes land banking an attractive strategy for long-term investors.
What are the property price forecasts for Lagos through 2026?
Property prices in Lagos are expected to rise by 5-15% annually through 2026, with growth rates varying significantly by location and property type.
Growth corridors like Ibeju-Lekki, Epe, Lekki, and Ajah are projected to see the highest appreciation rates of 10-15% annually. These areas benefit from ongoing infrastructure development including the Fourth Mainland Bridge, Lekki-Epe Airport, and coastal highway projects.
Prime luxury areas like Ikoyi and Victoria Island are expected to see more moderate growth of 5-8% annually due to supply catching up with demand. The luxury segment may experience higher vacancy rates as developers have rushed to meet perceived demand.
Mid-market and affordable housing segments will likely see the strongest demand and price resilience, with annual increases of 8-12%. The housing deficit of over 3 million units in Lagos ensures continued demand pressure in these segments.
Long-term projections through 2045 remain bullish, with Lagos's population expected to double by 2050. This demographic pressure, combined with ongoing urbanization, will sustain property price growth despite short-term economic volatility.
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How has fuel subsidy removal affected Lagos property prices?
The removal of fuel subsidies in 2023 has significantly impacted Lagos property prices by increasing both construction and living costs.
Transportation costs have surged, making building materials more expensive to deliver to construction sites. This has contributed to the overall increase in construction costs, which rose by over 100% between 2023 and 2024. Developers have passed these costs on to buyers, accelerating property price increases.
The subsidy removal has also shifted demand patterns within Lagos. Properties in centrally located areas closer to work and amenities have seen stronger price growth as residents seek to minimize transportation costs. Remote suburbs have experienced slower appreciation as their accessibility disadvantage became more pronounced.
Middle and low-income households have been particularly affected, with reduced disposable income limiting their ability to purchase property. This has increased pressure on the rental market and led to higher default rates on rent and mortgage payments.
Despite these challenges, the long-term impact may be positive if subsidy savings are invested in infrastructure improvements that enhance property values and connectivity across Lagos.
What role does inflation play in Lagos property price increases?
Inflation peaked at 34.19% in mid-2024, dramatically impacting Lagos property prices through increased construction and financing costs.
Construction inflation exceeded 300% over five years, with cement prices doubling and other materials seeing similar increases. These cost pressures directly translate to higher property prices as developers maintain profit margins. A property that cost ₦30 million to build in 2020 now costs over ₦90 million in construction expenses alone.
High inflation erodes purchasing power, making properties less affordable for average buyers. This has pushed more people into the rental market, creating additional demand pressure that drives up both rental rates and property values in a self-reinforcing cycle.
Interestingly, real estate has become a hedge against inflation for wealthy Nigerians and diaspora investors. As the Naira depreciates, property represents a store of value, attracting investment that further pushes up prices.
While nominal property prices continue rising rapidly, real returns adjusted for inflation are more modest. A property appreciating at 15% annually in an environment of 30% inflation actually loses value in real terms, though it still outperforms cash holdings.
How do current interest rates impact Lagos property affordability?
With the Central Bank of Nigeria's monetary policy rate at 27% in 2025, mortgage rates typically range from 15-20%, severely limiting property affordability.
These high borrowing costs mean that only about 10% of Nigerians can afford to purchase homes, according to the Central Bank. For a ₦50 million property with a 20% down payment, monthly mortgage payments at 18% interest can exceed ₦600,000, beyond the reach of most middle-class earners.
The high interest rates have pushed more buyers toward cash purchases or informal financing arrangements. Developers have responded by offering payment plans, though these typically require 30-50% down payments and completion within 12-24 months.
For investors, high interest rates mean that rental yields of 6-8% barely cover financing costs, reducing the attractiveness of leveraged property investment. This has concentrated property ownership among cash-rich buyers and limited market liquidity.
Despite these challenges, property demand remains strong as real estate offers protection against currency depreciation and inflation, making it attractive even with high financing costs.
We made this infographic to show you how property prices in Nigeria compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
What are real estate experts predicting for Lagos property prices?
Real estate experts predict Lagos property prices will continue rising by 5-15% annually through 2025-2026, with growth concentrated in specific corridors and property types.
Industry leaders point to several factors supporting continued price growth: Lagos's population exceeding 20 million and adding 500,000-600,000 residents annually, persistent housing deficit of over 3 million units, ongoing infrastructure projects improving connectivity, and strong diaspora investment fueled by remittances.
Experts particularly highlight growth corridors along the Lekki-Epe axis, where major projects like the Dangote Refinery and Deep Sea Port are transforming previously undeveloped areas. Properties here are expected to appreciate faster than the citywide average.
The rental market is projected to remain robust with yields of 6-8% in mid-market areas, though luxury segments may face oversupply challenges. Short-let apartments will continue commanding premium prices due to tourism and business travel demand.
However, experts caution that affordability constraints and high interest rates may limit price growth in some segments, making location selection and property type crucial for investment success.
How does urbanization drive Lagos property price increases?
Lagos adds 500,000-600,000 new residents annually, creating relentless demand pressure that drives property prices upward across all segments.
With over 60% of Nigeria's population expected to live in cities by 2025, Lagos attracts the largest share of urban migrants seeking economic opportunities. This population growth far outpaces housing supply, with developers managing to deliver only about 100,000 new units annually against demand for 300,000+.
The urbanization effect is most pronounced in emerging suburbs like Ibeju-Lekki and Epe, where previously agricultural land is rapidly converting to residential use. Land prices in these areas have appreciated by over 300% in a decade as urban sprawl extends the city boundaries.
Infrastructure struggles to keep pace with population growth, making well-connected neighborhoods increasingly valuable. Properties near the few functioning transport corridors like the Lekki-Epe Expressway command significant premiums.
This urbanization trend shows no signs of slowing, with Lagos projected to become one of the world's largest cities by 2050, ensuring continued upward pressure on property prices for decades to come.
How does Lagos compare to other African cities in terms of property prices?
Lagos ranks as one of the most expensive property markets in Africa, with prices exceeding those in Accra, Nairobi, and rivaling Johannesburg in prime areas.
| City | Avg. High-End Apt (USD) | Rental Yield | Annual Growth |
|---|---|---|---|
| Lagos | $100,000-$500,000+ | 6-8% | 5-15% |
| Nairobi | $80,000-$400,000 | 5-7% | 3-7% |
| Accra | $60,000-$300,000 | 5-8% | 5-10% |
| Johannesburg | $70,000-$350,000 | 7-9% | 2-5% |
| Cairo | $50,000-$250,000 | 6-8% | 10-15% |
| Kampala | $40,000-$200,000 | 8-10% | 5-8% |
| Kigali | $45,000-$220,000 | 7-9% | 8-12% |
Lagos remains the most expensive and fastest-appreciating residential market in West Africa, outpacing Accra and Abidjan in both absolute prices and growth rates. Only select neighborhoods in Johannesburg and Nairobi command comparable prices.
The city's rental yields of 6-8% remain competitive with other African capitals, though Cairo and some East African cities offer higher yields due to lower property prices relative to rents.
This is covered in detail in our Nigeria property pack.
Which government policies are affecting Lagos property prices in 2025?
The Lagos State Government allocated ₦101.6 billion for housing and community development in its 2025 budget, representing an 817% increase from previous years.
Major infrastructure projects are the primary government driver of property prices. The Fourth Mainland Bridge, Lagos Metro Rail, and Lekki-Epe coastal highway are opening new development corridors and improving accessibility, directly boosting property values along these routes.
The state's smart city initiatives and urban regeneration projects in areas like Yaba are attracting tech companies and young professionals, driving up property demand and prices in these neighborhoods. Tax incentives for developers are encouraging new supply, though not enough to meet demand.
However, land use policies and bureaucratic delays in obtaining building permits continue to constrain supply, inadvertently supporting higher prices. The complex land documentation process, requiring Governor's Consent for certain transactions, adds cost and time to property development.
Recent efforts to streamline property registration and digitize land records are expected to improve market efficiency and transparency, potentially moderating price growth by reducing transaction costs and risks.
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.
Yes, property prices in Lagos are going up significantly. The market experienced a 39.5% increase in 2024 and is projected to rise another 5-15% in 2025 and beyond.
This growth is driven by rapid urbanization, a housing deficit of over 3 million units, major infrastructure developments, and Lagos's position as Nigeria's economic powerhouse. While high inflation and interest rates pose affordability challenges, the fundamental demand-supply imbalance ensures continued price appreciation, making Lagos real estate an attractive long-term investment despite short-term volatility.
Sources
- 12 market data about Lagos' real estate market (2025)
- 2025 Nigeria Real Estate Prediction
- Yes, property prices will rise in Lagos in 2025
- 15 statistics for the Lagos real estate market in 2025
- Nigeria's Real Estate Market in 2025: Growth Projections and Key Drivers
- Real Estate - Nigeria | Statista Market Forecast
- 19 statistics for the Nigeria real estate market in 2025
- Is it worth it buying property in Lagos (Nigeria) in 2025?