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 can be highly profitable, but it requires careful navigation of a complex market with significant regional variations.
Property prices in Lagos range from ₦210,000 per square meter in emerging areas like Epe to ₦980,000 per square meter in premium locations like Ikoyi, with rental yields averaging 6-8% citywide and strong appreciation potential driven by rapid urbanization and infrastructure development.
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 nearly doubled in premium areas over the past five years, with current annual increases of 5-15% citywide.
Rental yields average 6-8% in mid-market areas, with strongest demand in rapidly developing districts like Lekki, Ibeju-Lekki, and Yaba.
| Area | Price per sqm (₦) | Rental Yield | Best For |
|---|---|---|---|
| Ikoyi | 980,000 | 5-6% | Luxury, short-let |
| Victoria Island | 900,000-1M | 6-7% | Short-let, expat |
| Lekki Phase 1 | 615,000 | 7-8% | End-users, buy-to-let |
| Ajah | 470,000 | 7-8% | Buy-to-let, entry-level |
| Yaba/Surulere | 490,000 | 8%+ | Rentals, students |
| Epe | 210,000 | N/A-few % | Speculation, land |
What are the current average property prices in Lagos by area and property type?
As of September 2025, Lagos property prices show dramatic variations across neighborhoods and property types.
Premium areas command the highest prices, with Ikoyi leading at ₦980,000 per square meter for residential properties, followed by Victoria Island at ₦900,000-₦1,000,000 per square meter. Mid-tier locations like Lekki Phase 1 average ₦615,000 per square meter, while Ajah sits at ₦470,000 per square meter.
Emerging areas offer more affordable entry points, with Epe properties averaging ₦210,000 per square meter and Yaba/Surulere at ₦490,000 per square meter. Land prices follow similar patterns, ranging from ₦11,000 per square meter in Epe to ₦210,000 per square meter in Ikoyi.
For complete properties, a 2-bedroom apartment in Ikoyi typically costs ₦150 million and above, while similar units in Victoria Island range from ₦100-150 million. In Lekki Phase 1, 3-4 bedroom duplexes sell for ₦60-100 million, and 2-bedroom units in Ajah cost ₦45-65 million.
The national average stands at ₦379,000 per square meter for residential properties and ₦21,800 per square meter for land.
How have Lagos property prices changed over the past 5 years and what's the short-term outlook?
Lagos property prices have experienced explosive growth over the past five years, with premium areas nearly doubling in value.
Growth corridors like Ibeju-Lekki and Epe have seen price surges of up to 100%, while established areas like Lekki Phase 1 and Ajah have maintained steady double-digit growth. Land appreciation has been particularly dramatic, with some areas in Ibeju-Lekki and Epe showing 300% growth over the past decade.
The year 2024 marked a significant acceleration, with prices surging 39.5% driven by inflation and currency weakness. This trend reflects broader economic pressures affecting the Nigerian real estate market.
For 2025 and the short-term outlook, property prices are expected to continue rising at 5-15% annually citywide. The fastest appreciation is anticipated along infrastructure corridors, particularly areas near the Lekki-Epe Expressway and proximity to new airports and seaports.
High-growth zones remain concentrated in Ibeju-Lekki, Epe, and areas benefiting from major infrastructure projects like the Dangote Refinery and Lekki Deep Sea Port.
What are the rental yields in Lagos by neighborhood and property type?
Lagos rental yields vary significantly by location and property type, with citywide averages ranging from 5.5% to 8%.
| Area | Rental Yield Range | Property Type Performance |
|---|---|---|
| Mid-market areas (Yaba, Surulere, Ajah) | 6-8% | Apartments perform best |
| Luxury segments (Ikoyi, VI) | 5-6% | Short-let properties excel |
| Lekki areas | 7-8% | Mixed residential strong |
| Victoria Island | 6-7% | Short-let premium locations |
| Yaba (student areas) | 8%+ | Student housing highest yields |
| Gbagada/Magodo | 6-7% | Middle-class housing stable |
| Emerging areas (Epe) | Few % or N/A | Limited rental market |
Short-let apartments in prime areas significantly outperform traditional rentals, potentially yielding over 8% and up to 30% more than long-term leases. However, this comes with higher operational complexity and management requirements.
The highest consistent yields are found in Lekki, Yaba, and Victoria Island, where strong tenant demand meets reasonable property prices.
How strong is tenant demand in Lagos and how does it vary by area?
Tenant demand in Lagos remains exceptionally strong, with the city scoring 97/100 on demand metrics due to rapid urbanization and persistent housing shortages.
Demand concentration follows infrastructure and employment patterns, with the strongest tenant interest in areas experiencing robust job growth and development. Lekki, Ibeju-Lekki, Yaba, Surulere, and Ajah lead in tenant demand due to their strategic locations and ongoing development.
The rental market significantly outpaces supply in strategic corridors, creating a landlord-favorable environment with minimal vacancy periods. Areas near major employment centers, universities, and transport hubs maintain consistently high occupancy rates.
Student housing in areas like Yaba commands particularly strong demand, while young professionals drive rental activity in Lekki and Ajah. Expatriate and high-income local demand concentrates in Victoria Island and Ikoyi, supporting premium rental rates.
Emerging areas like Epe and outer Ibeju-Lekki show growing but still limited rental demand, making them more suitable for capital appreciation strategies than immediate rental income.
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 transaction costs, taxes, and hidden fees when buying property in Lagos?
Property transactions in Lagos involve multiple mandatory fees and taxes that buyers must factor into their total investment cost.
The primary government charges include Land Use Charge at 0.0394% of property value for owner-occupied units, Governor's Consent Fee at 1.5% of property value, Stamp Duty at 1.5% of value, and Registration Fee at 0.5% of value. Survey fees typically range from ₦150,000 to ₦300,000 depending on location and property size.
Capital Gains Tax applies at 10% of sale profit when selling properties, making it crucial for investment calculations. Annual service charges in gated estates and managed properties range from ₦1,000 to ₦5,000 per square meter, representing ongoing costs that affect net yields.
Hidden costs often include legal fees, property inspection costs, insurance premiums, and potential "settlement" fees in some areas. Due diligence costs for title verification and property surveys can add ₦500,000 to ₦1,000,000 to smaller transactions.
Total transaction costs typically represent 4-6% of property value for straightforward purchases, but can reach 8-10% for complex transactions or properties with title issues.
Which areas in Lagos are experiencing the fastest infrastructure and development growth?
Ibeju-Lekki leads Lagos in infrastructure development, driven by massive projects including the Dangote Refinery, Lekki Deep Sea Port, and planned international airport.
These mega-projects are transforming Ibeju-Lekki into a major commercial and industrial hub, driving unprecedented property appreciation and development activity. The area benefits from direct government investment and private sector confidence, creating a positive feedback loop of infrastructure and property development.
Epe represents the next major growth corridor, with improved road networks, new residential developments, and increasing popularity among budget-conscious buyers. The area offers affordable entry points while benefiting from Lagos' urban expansion eastward.
Sangotedo, Ikorodu, and Badagry also show high growth rates due to transport improvements and commercial investments. These areas benefit from government infrastructure spending and private sector development, though at a smaller scale than Ibeju-Lekki.
It's something we develop in our Nigeria property pack.
What risks should buyers consider regarding land titles, regulations, and legal security?
Lagos operates under a complex dual land tenure system combining statutory and customary law, creating potential for overlapping claims and disputes.
The most significant risk involves "Omo-onile" land sellers who may sell the same plot multiple times to different buyers, leading to costly legal battles and potential loss of investment. This practice particularly affects buyers in developing areas and those purchasing directly from traditional land owners.
Certificate of Occupancy and Governor's Consent delays are common, sometimes taking years to obtain even for legitimate transactions. These delays can affect property development timelines and financing arrangements.
Due diligence requirements are extensive and should include verification of title documentation, survey confirmation, tax compliance checks, and community acceptance verification. Many buyers underestimate these requirements, leading to future complications.
Regulatory changes and policy shifts can affect property rights and development approvals, particularly in areas undergoing rapid urbanization or environmental concerns.
How liquid is the Lagos property market and how easy is resale?
Property liquidity in Lagos varies dramatically by location, price point, and property type.
Highest liquidity exists in well-developed, connected neighborhoods including Ikoyi, Lekki, Victoria Island, and Ajah, where established buyer demand and transparent pricing facilitate faster transactions. These areas benefit from strong infrastructure, clear title systems, and active real estate markets.
Budget and mid-market properties typically sell faster than ultra-luxury units, as they appeal to a broader buyer base. Properties priced between ₦30-100 million generally find buyers more quickly than those above ₦150 million.
Land sales in fast-growth corridors like Epe and Ibeju-Lekki remain very active, driven by speculation and development demand. However, completed properties in these areas may take longer to sell due to limited immediate end-user demand.
Off-plan properties and developments in less established areas require longer marketing periods but may offer higher appreciation potential for patient sellers.
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.
How do short-term, medium-term, and long-term returns compare in Lagos real estate?
Lagos property returns vary significantly based on investment timeline and location strategy.
Short-term returns (1-3 years) are fastest in Ibeju-Lekki, Epe, and emerging mainland locations due to speculative interest and ongoing infrastructure projects. These areas can deliver 15-30% annual appreciation during development phases, though with higher volatility and risk.
Medium-term returns (3-7 years) show steadier appreciation in established suburbs and premium apartments, particularly those tied to infrastructure development. Areas like Lekki Phase 1, Ajah, and Yaba typically deliver 10-15% annual appreciation with lower risk profiles.
Long-term returns (7+ years) offer the highest potential in nascent areas benefiting from urban expansion, with historical examples showing value multiplication of 5-10 times over extended periods. However, this requires significant risk tolerance and market timing.
Short-let rental operations in prime areas can provide immediate cash flow returns of 8-12% annually, potentially 30% higher than traditional long-term leases, but require active management and higher operational expertise.
What budget ranges make sense for different investment purposes in Lagos?
Budget allocation in Lagos real estate should align with specific investment objectives and risk tolerance.
| Budget Range | Buy-to-Live | Buy-to-Rent | Buy-to-Sell/Resell |
|---|---|---|---|
| Under ₦30M | Epe, Ikorodu, Badagry | Ajah, Yaba, Surulere | Epe, Sangotedo |
| ₦30M-₦100M | Lekki, Ajah, Magodo | Yaba, Surulere, Gbagada | Sangotedo, Magodo |
| Over ₦100M | Ikoyi, Victoria Island | Lekki Phase 1, Banana Island | Banana Island, Victoria Island |
| ₦150M+ | Premium Ikoyi, VI waterfront | Luxury short-let properties | Ultra-premium locations |
| ₦5M-₦20M (Land) | Emerging area plots | N/A | High-growth corridor land |
| ₦20M-₦50M (Land) | Developed area plots | N/A | Strategic location land |
| ₦50M+ (Land) | Prime location plots | N/A | Premium development land |
For buy-to-live purposes, prioritize areas with established infrastructure and quality of life amenities. Buy-to-rent investments should focus on areas with strong tenant demand and reasonable property management infrastructure.
It's something we develop in our Nigeria property pack.
Which property types are performing best in Lagos currently?
Lagos property performance varies significantly by type, with certain categories showing superior returns and demand characteristics.
Apartments demonstrate the strongest performance in areas like Yaba, Surulere, and Lekki, offering high rental demand and good yields between 7-8%. The apartment market benefits from strong end-user and investor demand, particularly for 2-3 bedroom units.
Terraces and duplexes in established areas like Lekki, Ikeja, and Magodo offer superior long-term capital appreciation potential, typically outperforming apartments in price growth. These properties appeal to affluent end-users and provide both rental income and appreciation.
Land purchases in Ibeju-Lekki and Epe deliver optimal long-term returns with the highest historical appreciation rates. Land investments require longer holding periods but can provide exceptional returns in rapidly developing corridors.
Short-let properties generate the highest short-term yields in premium areas like Ikoyi, Lekki, and Victoria Island, but require active management and higher operational expertise. These properties can achieve 8-12% annual returns with proper management.
Commercial properties in strategic locations show strong performance, though requiring higher initial capital and specialized market knowledge.
Where should you position yourself now to maximize value in Lagos real estate?
Strategic positioning in Lagos real estate requires balancing growth potential, risk tolerance, and investment timeline.
For maximum growth potential, focus on emerging districts including Ibeju-Lekki, Epe, and Sangotedo for high-appreciation land purchases and mid-market residential properties. These areas benefit from ongoing infrastructure development and urban expansion trends.
For stable rental yields, target Yaba, Surulere, and Ajah for apartment investments, or Gbagada and Magodo for middle-class housing. These locations offer established rental markets with predictable returns and lower volatility.
Luxury capital protection strategies should focus on Ikoyi and Victoria Island, though expect slower appreciation rates in exchange for stability and prestige. These areas maintain value during market downturns and offer premium rental opportunities.
Budget-focused investors should consider Epe or Badagry areas with strong infrastructure development pipelines, offering low entry costs with significant upside potential as Lagos continues expanding.
It's something we develop in our Nigeria property pack.
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 real estate presents significant opportunities for both capital appreciation and rental income, with the market showing robust growth across multiple segments.
Success requires careful area selection, thorough due diligence on legal matters, and alignment of investment strategy with budget and risk tolerance, particularly given the complex land title system and rapid market evolution.
Sources
- Nigeria Real Estate Blog - Property Price Index
- The African Investor - Lagos Nigeria Property
- The African Investor - Lagos Price Forecasts
- Vanguard - Luxury Properties Rental Income Report
- Nigeria Real Estate Blog - Average Property Prices
- The African Investor - Real Estate Investment Nigeria
- Radarr Africa - Short Term vs Long Term Rentals
- Nigeria Real Estate Blog - Property Demand Trends
- Discover Lagos - Fast Developing Areas
- The African Investor - Lagos Property Taxes and Fees