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
Buying property in Lagos in 2025 can be a smart investment if you plan to stay long-term or want rental income.
Lagos property prices have surged 39.5% in 2024 and are expected to rise another 5-15% in 2025, especially in areas like Lekki, Ibeju-Lekki, and Epe. With rental yields averaging 6-8% and strong demand outpacing supply, the market offers solid returns for investors who do proper due diligence and work with reputable agents.
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 offers diverse property types from ₦15 million studio apartments to ₦1 billion luxury villas, with buying generally better than renting for long-term residents due to 8-15% annual appreciation in prime areas.
The Lagos property market remains hot in mid-2025, with prices expected to rise 5-15% this year, especially in growth corridors like Lekki and Ibeju-Lekki where infrastructure projects are driving demand.
| Property Budget (USD) | What You Can Buy | Best Locations |
|---|---|---|
| Under $100k | Serviced plots, basic apartments | Epe, Ikorodu, Badagry, Agbado |
| $100k-$200k | 2-3 bed apartments, terraces | Ajah, Sangotedo, Yaba, Surulere |
| $200k-$500k | 3-4 bed duplexes, luxury flats | Lekki, Ikeja, Magodo, Gbagada |
| $500k+ | Luxury villas, penthouses | Ikoyi, Victoria Island, Banana Island |
| Rental Yields | 6-8% average annually | Higher in Lekki, Yaba, VI |
| Price Growth 2025 | 5-15% expected increase | Fastest in Ibeju-Lekki, Epe |
| Service Charges | ₦1,000-₦5,000 per sqm/year | Higher in luxury estates |
What property types can I buy in Lagos - apartments, duplexes, or off-plan deals?
Lagos offers a wide variety of property types to suit different budgets and preferences.
You can buy studio to multi-bedroom apartments in both luxury high-rises and modest buildings, with prices starting from around ₦15 million ($10,000) for basic units in outskirts areas. Duplexes and terraces, either semi-detached or fully detached, are popular choices in both upscale neighborhoods like Lekki Phase 1 and emerging areas like Sangotedo, typically ranging from ₦50 million to ₦500 million depending on location and amenities.
Serviced plots for those looking to build their own homes are available from ₦5 million in developing areas to over ₦100 million in prime locations. These plots come with basic infrastructure like roads, drainage, and sometimes electricity connections, making them ready for construction.
Off-plan properties have become increasingly popular in Lagos, allowing buyers to purchase apartments, terraces, or duplexes before construction is complete. These deals typically offer flexible payment plans spread over 12-24 months and can provide 20-30% savings compared to completed properties. Major developers like Landwey, Veritasi Homes, and Facibus Housing offer off-plan projects in areas like Lekki, Ajah, and Ibeju-Lekki.
It's something we develop in our Nigeria property pack.
Should I rent or buy property in Lagos in 2025?
Buying is generally the better option if you plan to stay in Lagos for more than 5 years or want to build wealth through real estate.
Property values in Lagos appreciate 8-15% annually in prime areas, offering both capital gains and protection against Nigeria's inflation and currency devaluation. Buying also provides stability - you won't face sudden rent increases or eviction notices, and you can earn rental income if you have extra space or decide to relocate temporarily.
| Factor | Buying | Renting |
|---|---|---|
| Upfront Cost | High (20-30% down payment + fees) | Lower (1-2 years rent + agency fee) |
| Monthly Cost | Mortgage payments + maintenance | Rent only (but rising 5-10% yearly) |
| Flexibility | Low - harder to relocate | High - easy to move |
| Wealth Building | Yes - appreciation + rental income | No - money goes to landlord |
| Maintenance | Your responsibility | Landlord handles it |
| Best For | Long-term residents, investors | Short stays, young professionals |
| Income Impact | Initial strain, long-term gain | 40-50% of income ongoing |
Renting makes more sense if you need flexibility, are new to Lagos, or can't afford the high upfront costs of buying. It allows you to live in prime areas like Victoria Island or Ikoyi without the massive capital outlay, though rents are rising 5-10% annually and often consume 40-50% of income.
How have Lagos property prices changed recently and what's the 2025 outlook?
Lagos property prices have experienced dramatic growth, surging 39.5% in 2024 alone due to inflation, currency devaluation, and high demand.
From 2020 to 2024, property values in Lagos nearly doubled in many areas, with the most significant jumps occurring in 2023-2024. Areas like Ibeju-Lekki saw land prices increase by over 100% in just five years, while established neighborhoods like Lekki and Victoria Island maintained steady appreciation of 15-20% annually.
As of June 2025, the average property price in Lagos stands at approximately ₦50 million ($33,000), though this varies widely by location and property type. A 2-bedroom apartment in Surulere might cost ₦35 million, while the same size in Ikoyi could exceed ₦150 million.
For the remainder of 2025, property prices in Lagos are forecast to rise another 5-15%, with the highest growth expected in infrastructure corridors. Lekki-Epe Expressway areas, Ibeju-Lekki (near the new airport and seaport), and emerging neighborhoods along new road projects will likely see 10-15% appreciation. Luxury areas like Banana Island and Ikoyi may see slower growth of 5-8% due to already high prices and increased supply.
The ongoing development of the Lekki Deep Sea Port, the proposed Fourth Mainland Bridge, and various road expansion projects continue to drive investor confidence and price growth in Lagos's property market.
Is Lagos's property market heating up, cooling down, or staying flat?
The Lagos real estate market remains hot and dynamic as we reach mid-2025, with demand significantly outpacing supply.
The residential property market shows no signs of cooling, driven by Nigeria's growing population, rapid urbanization, and Lagos's position as the country's economic hub. Quality housing remains scarce, especially in secure, well-serviced neighborhoods, creating intense competition among buyers and renters alike.
Rental yields remain attractive at 6-8% on average, with short-let and serviced apartments seeing even higher returns due to the growing number of business travelers and tourists. The short-let segment experienced price surges of over 46% in 2024 and continues to grow in 2025, particularly in areas like Lekki, Victoria Island, and Ikoyi.
Different market segments show varying dynamics. The luxury segment (properties above ₦500 million) is experiencing slower rental growth due to increased supply, though capital appreciation remains steady. The mid-market segment (₦50-200 million) shows the strongest activity, with properties selling within weeks in popular areas. The affordable housing segment (under ₦50 million) faces extreme demand, with new developments in areas like Ikorodu and Badagry selling out during pre-launch phases.
How does the property buying process work in Lagos, from search to title transfer?
The property buying process in Lagos requires careful navigation through multiple steps to ensure a legitimate and smooth transaction.
Start by determining your budget and preferred location, factoring in not just the purchase price but also legal fees (5-10% of property value), agency fees (5-10%), and registration costs. Next, engage a reputable real estate agent or use trusted platforms like PropertyPro.ng or Nigeria Property Centre to find verified listings.
Once you've identified potential properties, conduct physical inspections with your agent and preferably a surveyor. After selecting a property, the crucial legal due diligence phase begins - your lawyer must verify the title at the Lagos State Land Registry, conduct a search to confirm ownership, check for any encumbrances or government acquisition, and ensure the property has proper documentation.
After successful due diligence, negotiate the price and terms, then make a formal offer. Your lawyer will draft a Sales Agreement outlining all terms, which both parties review and sign. Payment typically involves an initial deposit (10-30%) with the balance paid according to agreed terms. Always insist on official receipts and bank transfers rather than cash payments.
The final steps involve title transfer through a Deed of Assignment, obtaining Governor's Consent (which can take 3-6 months), and registering the title in your name. After all documentation is complete, you'll receive the keys and take possession. Post-purchase tasks include registering with the local residents' association and setting up utilities.
Which real estate agencies and platforms are most reliable in Lagos?
Finding trustworthy real estate agencies and platforms is crucial for a successful property purchase in Lagos.
The most reliable online platforms include PropertyPro.ng, Nigeria Property Centre, PrivateProperty.com.ng, and NaijaHouses. These platforms verify listings and provide detailed property information, photos, and direct contact with agents or owners. They also offer search filters for budget, location, and property type, making it easier to find suitable options.
Top real estate agencies with proven track records include Veritasi Homes, known for luxury properties and excellent customer service; Landwey, specializing in affordable housing and land banking; Facibus Housing, focused on modern estates and off-plan developments; and Dradrock Real Estate, offering comprehensive property management services. Other reputable firms include Vines Realty, Dutum Construction, 27th Development, and Audacia Homes.
For personalized service, consider working with established individual consultants like Rukayat Yusuf of Naija Trusted Realtor, KGL Realtor Pro, or Almart Realtors. These professionals often have deep local knowledge and can provide guidance throughout the buying process. It's something we develop in our Nigeria property pack.
Always verify any agency's credentials with LASRERA (Lagos State Real Estate Regulatory Authority) and check online reviews before committing. Legitimate agencies will have proper documentation, transparent processes, and won't pressure you for immediate payment.
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 properties can I get for different budgets - under $100k, $200k, or $500k?
Your budget determines not just the type of property but also the location and amenities you can access in Lagos.
| Budget Range | Property Types | Best Locations | What to Expect |
|---|---|---|---|
| Under $100k (₦150M) | Land plots, basic apartments, small terraces | Epe, Ikorodu, Badagry, Agbado, Ojo | 500-1000 sqm plots, 1-2 bed apartments, emerging areas |
| $100k-$200k (₦150-300M) | 2-3 bed apartments, terraces, semi-detached duplexes | Ajah, Sangotedo, Yaba, Surulere, Ogba | Modern finishes, gated communities, 3-4 bed terraces |
| $200k-$500k (₦300-750M) | 3-4 bed duplexes, luxury apartments, penthouses | Lekki Phase 1, Ikeja GRA, Magodo, Maryland | Swimming pools, gyms, 24/7 power, premium finishes |
| $500k-$1M (₦750M-1.5B) | Luxury duplexes, waterfront properties, villas | Ikoyi, Victoria Island, Banana Island | Smart homes, private pools, gardens, premium locations |
| Above $1M (₦1.5B+) | Mansion, estates, exclusive villas | Banana Island, Parkview Estate, private estates | Multiple units, waterfront, helipads, ultimate luxury |
Budget considerations should include not just the purchase price but also additional costs like legal fees, agency commissions, renovation needs, and ongoing maintenance. Properties in emerging areas like Epe or Ikorodu offer better value but may lack infrastructure, while premium areas command higher prices but provide immediate amenities and better rental potential.
Which Lagos neighborhoods are affordable, up-and-coming, or upscale?
Lagos neighborhoods can be categorized into three distinct tiers based on property prices, infrastructure, and development status.
Affordable neighborhoods include Ikorodu, Ojo, Alagbado, Egbeda, Ikotun, Badagry, and parts of Epe. These areas offer properties under ₦50 million, making them accessible to middle-income buyers. While they're farther from the city center and may have patchy infrastructure, ongoing road projects and planned developments make them attractive for long-term investment. The main trade-off is longer commute times and less developed amenities.
Up-and-coming areas like Sangotedo, Ibeju-Lekki, Epe axis, Ogudu, Gbagada, Yaba, and Surulere represent the sweet spot for investors. These neighborhoods are experiencing rapid development due to new infrastructure projects like the Lekki-Epe Expressway expansion and the Fourth Mainland Bridge. Property prices here range from ₦40-150 million, with strong appreciation potential of 10-15% annually. They attract young professionals and families seeking modern amenities at reasonable prices.
Upscale neighborhoods - Ikoyi, Victoria Island, Banana Island, Lekki Phase 1, Magodo, and Ikeja GRA - command premium prices starting from ₦200 million. These areas offer luxury amenities, excellent security, proximity to business districts, and international schools. While appreciation is steadier at 5-8% annually, they provide prestige, immediate rental income potential, and stable investment returns. The main drawbacks are high entry costs, expensive service charges, and traffic congestion during peak hours.
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 the living costs in Lagos for property owners?
Owning property in Lagos comes with significant ongoing costs beyond the initial purchase price.
Service charges in estates range from ₦1,000 to ₦5,000 per square meter annually, with luxury estates commanding the highest fees. For a typical 200 sqm property, this translates to ₦200,000 to ₦1 million yearly. These charges cover security, road maintenance, street lighting, and common area upkeep.
Monthly utilities for a 2-bedroom apartment typically cost ₦20,000 to ₦50,000, including electricity (often supplemented by generators due to irregular power supply), water, and waste disposal. Generator fuel alone can cost ₦15,000 to ₦30,000 monthly, depending on usage. Many estates now provide central generator systems, but residents pay for diesel consumption.
Additional costs include security fees (₦500-₦2,000 per sqm yearly), maintenance and repairs (₦1,500-₦4,000 per sqm yearly), property insurance (₦100,000-₦500,000 annually), and various community levies. Lagos State Land Use Charge varies by property value and location but typically ranges from ₦50,000 to ₦500,000 annually for residential properties.
In total, expect to spend 5-10% of your property's value annually on maintenance, utilities, and charges - higher in luxury estates and lower in standard neighborhoods.
What should expats know about daily life if buying property in Lagos?
Living in Lagos as an expat property owner requires adapting to a vibrant but challenging urban environment.
The city offers a cosmopolitan lifestyle with diverse international communities, especially in areas like Ikoyi, Victoria Island, and Lekki. You'll find numerous international restaurants, modern shopping malls, beach clubs, and cultural events. The social scene is active, with many networking opportunities and expat groups providing support for newcomers.
Security varies significantly by neighborhood - gated estates in upscale areas provide 24/7 security, while other areas may require additional precautions. Most expats hire drivers familiar with Lagos roads and security protocols. Traffic congestion is a major challenge, with commutes often taking 2-3 times longer than the actual distance suggests. Living close to work or schools is crucial for quality of life. It's something we develop in our Nigeria property pack.
Infrastructure challenges include inconsistent power supply (most homes rely on generators or inverters), water quality concerns (many use water treatment systems), and internet connectivity issues in some areas. However, upscale neighborhoods generally have better infrastructure and backup systems.
Healthcare and education options are good in Lagos, with several international-standard hospitals and schools, particularly in Ikoyi, Victoria Island, and Lekki. The American International School, British International School, and Lycée Français provide familiar curricula for expat children. Private healthcare at facilities like St. Nicholas Hospital, Reddington Hospital, or Lagoon Hospital offers quality medical care.
Which areas offer the best long-term rental potential and yields?
Strategic location selection is crucial for maximizing long-term rental income in Lagos.
The best areas for long-term rentals include Lekki Phase 1, Yaba, Surulere, Ikeja, Ajah, Gbagada, Ogudu, and Magodo. These neighborhoods attract steady tenant demand from young professionals, families, and corporate employees due to their balance of affordability, amenities, and accessibility to business districts.
Tenant preferences in Lagos focus heavily on 24/7 electricity (or reliable backup power), water supply, security, and proximity to work or schools. Properties with modern amenities like gyms, swimming pools, and covered parking command 20-30% higher rents. Young professionals prefer 1-2 bedroom apartments in areas like Yaba and Surulere, while families seek 3-4 bedroom houses in Lekki, Magodo, or Gbagada.
1. **Lekki Phase 1**: 7-9% yield, attracts expats and upper-middle-class families2. **Yaba**: 8-10% yield, popular with young professionals and tech workers3. **Surulere**: 7-8% yield, steady demand from middle-class families4. **Ikeja GRA**: 6-7% yield, corporate executives and expatriates5. **Ajah**: 8-9% yield, growing area with young familiesAverage rental yields in Lagos range from 6-8% annually, higher than many international markets. A ₦50 million property in Lekki might rent for ₦3-4 million yearly, while properties in emerging areas can yield up to 10% due to lower purchase prices and growing rental demand.
What about short-term rentals - best locations, earnings, and regulations?
Short-term rentals in Lagos have exploded in popularity, with the sector seeing 46% price growth in 2024.
The most profitable locations for short-term rentals are Lekki Phase 1, Victoria Island, Ikoyi, and parts of Ikeja near the airport. These areas attract business travelers, tourists, and locals seeking temporary accommodation for events or emergencies. Properties near entertainment spots, beaches, or business districts perform best, with occupancy rates of 60-80% in prime locations.
Guests prioritize modern furnishings, reliable WiFi, 24/7 power supply, Netflix-equipped smart TVs, fully equipped kitchens, and security. Properties with unique features like rooftop terraces, swimming pools, or proximity to landmarks can charge premium rates. A well-furnished 2-bedroom apartment in Lekki can earn ₦50,000-₦100,000 per night, while luxury properties in Ikoyi or Victoria Island command ₦150,000-₦300,000 nightly.
LASRERA (Lagos State Real Estate Regulatory Authority) has introduced stricter regulations for short-let operations in 2024-2025. Property owners must register their short-let businesses, comply with safety standards, and may need special permits in certain residential areas. Some estates prohibit short-term rentals entirely, so verify estate rules before investing. Tax obligations include VAT on rental income and annual tax returns.
Monthly earnings vary by location and property type but typically range from ₦500,000 to ₦2 million for well-managed properties in prime areas, significantly higher than long-term rental income.
Conclusion
Buying property in Lagos in 2025 presents strong opportunities for both investors and residents willing to navigate the market carefully. With property values appreciating 5-15% annually, rental yields of 6-8%, and massive infrastructure developments underway, Lagos real estate offers compelling returns compared to many global markets.
Success requires thorough due diligence, working with reputable agents and lawyers, choosing the right location for your goals, and budgeting for ongoing costs beyond the purchase price. Whether you're buying to live, rent out long-term, pursue short-lets, or flip for profit, Lagos's dynamic property market rewards informed decision-making and patience.
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.
For long-term residents and investors with proper planning and reliable partners, buying property in Lagos in 2025 can be a wealth-building decision that provides both immediate utility and future financial security.
The key is matching your investment strategy to your personal goals, financial capacity, and risk tolerance while taking advantage of Lagos's position as West Africa's largest economy and fastest-growing megacity.