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
Lagos residential property prices have risen sharply over the past year, with strong price growth and rental yields but risks of oversupply in higher-end segments.
The naira remains volatile, mortgage rates are high, and both local policy changes and economic trends are shaping the market outlook in 2025.
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 surged 39.5% in 2024, with expectations of another 5-15% rise in 2025.
High mortgage rates of 18-24% make financing expensive, while rental yields of 6-8% provide attractive returns.
| Metric | Current Status (September 2025) | Trend |
|---|---|---|
| Average Price per Sqm | ₦800,000-1,500,000 (mid-market) | Up 39.5% from 2024 |
| Rental Yield | 6-8% (mid-market apartments) | Stable to slightly up |
| Mortgage Rates | 18-24% annually | High and stable |
| Price Growth Forecast | 5-15% for next 12 months | Continued upward pressure |
| Oversupply Risk | 30-40% unsold in luxury areas | Concentrated in high-end |
| Currency Stability | ₦1,400-1,600/USD | Volatile with periodic spikes |
| New Supply | 100,000 units under construction | Completion expected 2025-2026 |
What's the current average price per square meter for residential property in Lagos, and how does it compare to last year?
Lagos residential property prices currently range between ₦800,000 to ₦1,500,000 per square meter in mid-market areas as of September 2025.
Prime districts like Ikoyi, Victoria Island, and Lekki command higher prices up to ₦1,300,000 per square meter. In emerging neighborhoods, you can find properties priced between ₦200,000-₦500,000 per square meter.
Compared to 2024, Lagos property prices have experienced a dramatic surge of 39.5% across the city. This represents one of the steepest annual increases in recent years, driven by rapid population growth, infrastructure development, and strong diaspora demand.
The price increases have been consistent across most neighborhoods, with luxury areas showing slightly more moderate growth due to oversupply concerns in higher-end segments.
How fast are property prices in Lagos rising or falling right now, and which neighborhoods are seeing the sharpest changes?
Lagos property prices are rising at different speeds depending on the specific neighborhood and development status.
| Neighborhood | Annual Growth Rate | Key Drivers |
|---|---|---|
| Ibeju-Lekki | 15-20%+ | New airport, infrastructure projects |
| Epe | 15-20%+ | Emerging growth corridor, affordability |
| Lekki | 10-15% | Established development, tech hub growth |
| Ajah | 10-15% | Middle-class expansion, good connectivity |
| Yaba/Surulere | 8-10% | Urban renewal, tech sector growth |
| Ikoyi | 5-8% | Luxury oversupply limiting growth |
| Victoria Island | 5-8% | Market saturation in premium segment |
The fastest growth is concentrated in emerging areas where infrastructure investment and development potential attract both local and diaspora buyers seeking value opportunities.
What is the current rental yield in Lagos for apartments and houses, and does it realistically cover mortgage costs?
Lagos residential properties currently generate rental yields between 6-8% for mid-market apartments, with luxury segments averaging 5.5-7% annually.
The strongest rental performance comes from apartments in Lekki, Yaba, Victoria Island, and Ikoyi, where short-let apartments can command premium rates. Mid-market properties in growing areas like Ajah and Sangotedo also show solid rental demand.
However, with current mortgage interest rates ranging from 18-24% annually, rental income only partially covers average mortgage costs in most cases. While rental yields remain attractive compared to many other investment options, the high cost of financing makes leveraged property investment challenging.
Cash buyers or those with significant down payments can achieve better returns, as the rental income provides steady cash flow without the burden of expensive mortgage payments.
It's something we develop in our Nigeria property pack.
How high are Lagos mortgage interest rates at the moment, and what monthly repayment would that mean for a typical 20-year loan?
Current mortgage rates in Lagos range from 18-24% annually, with some commercial banks and mortgage institutions quoting up to 26-30% for new loans as of September 2025.
For a typical ₦50 million loan over 20 years at 22% annual interest, monthly payments would be approximately ₦960,000-₦1,050,000, depending on the down payment amount and specific lender terms.
Most lenders require that mortgage repayments cannot exceed 50% of your net monthly salary, which means you would need a monthly income of at least ₦1.9-2.1 million to qualify for such a loan.
These high interest rates reflect the broader economic environment, including inflation concerns, currency volatility, and central bank monetary policy. The expensive financing environment favors cash buyers and makes leveraged property investment more challenging for average earners.
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What percentage of listed Lagos properties sit unsold for more than six months, and in which areas is the oversupply most severe?
High-end districts including Ikoyi, Lekki, and Victoria Island currently show significant oversupply, with 30-40% of property listings remaining unsold for six months or more.
The oversupply is most severe in the luxury segment where developers have built expensive properties that exceed local affordability levels. Many of these properties target diaspora buyers and high-income professionals, but demand has not kept pace with supply.
In contrast, mid-market areas like Ajah, Sangotedo, Surulere, and Yaba have much better absorption rates and fewer long-term unsold listings. These areas benefit from stronger local demand and more realistic pricing relative to income levels.
Developers in oversupplied areas are facing cash flow issues, with some offering significant discounts or flexible payment terms to move inventory. This creates opportunities for buyers with ready cash but also signals potential market corrections in the luxury segment.
How many new housing projects are under construction in Lagos right now, and when are they expected to be completed?
An estimated 100,000 new residential units are currently under construction across Lagos as of September 2025.
The majority of these projects are concentrated in the Lekki-Epe development corridor, along with significant construction activity in Surulere, Yaba, and Ajah areas. Most developments focus on gated estates, mid-market apartments, and luxury flats along prime transportation corridors.
Main completion dates are expected between late 2025 and early 2026, which will add substantial new supply to the market. This timeline coincides with infrastructure projects like road improvements and the new international airport development.
The large volume of upcoming supply could impact pricing, particularly in areas where demand may not absorb all new units quickly. Buyers should consider this supply pipeline when making timing decisions.
How stable is the Nigerian naira today, and what's the trend of inflation in the past six months?
The Nigerian naira continues to experience significant volatility as of September 2025, with exchange rates hovering around ₦1,400-1,600 per USD.
The currency experiences periodic spikes and drops due to ongoing foreign exchange reforms and policy changes. This volatility affects property prices, particularly for diaspora buyers whose purchasing power fluctuates with exchange rate movements.
Annual headline inflation has remained high at 19-22% over the past six months, with continuing upward pressure from energy costs and currency depreciation. This inflation environment supports real estate as an inflation hedge but also increases construction costs and general living expenses.
The combination of currency instability and high inflation creates both opportunities and risks for property investors, depending on their currency exposure and investment timeline.
What is the current unemployment rate in Lagos, and how is it affecting household purchasing power?
Lagos unemployment rate is estimated at 12-14% as of 2025, which significantly affects both rental and sales market liquidity, especially in lower-income segments.
High unemployment combined with slow wage growth and expensive financing conditions has dampened end-user purchasing power. Many potential buyers are delaying home purchases or seeking more affordable rental options instead.
This employment situation has created a preference for rental housing over ownership among many Lagos residents, which supports rental yields but limits the pool of potential property buyers. The economic pressure particularly affects first-time buyers and middle-income households.
However, the employment challenges also create opportunities for investors who can provide quality rental housing to meet the growing demand from households unable or unwilling to purchase property in the current economic environment.
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 government policies or taxes are being proposed or implemented this year that could influence property prices in Lagos?
The Nigerian government has proposed several policy changes in 2025 that could impact Lagos property transactions and pricing.
1. Higher stamp duty rates for property transactions 2. Stricter land title verification and enforcement procedures 3. Expansion of electronic land registration (e-GIS) system 4. Increased withholding tax rates for foreign property investors 5. Enhanced transparency requirements for property developersThese planned reforms aim to boost market transparency and reduce fraud, but they may slow transaction speeds and increase compliance costs for buyers and sellers. The electronic registration system improvements should make property purchases safer in the long term.
Foreign investors and diaspora buyers should expect additional documentation requirements and potentially higher transaction costs due to the new withholding tax provisions.
It's something we develop in our Nigeria property pack.
What are the forecasts from local real estate experts and banks for Lagos property values over the next 12 to 24 months?
Local real estate experts and major Nigerian banks expect Lagos property prices to continue rising by 5-15% annually through 2026.
The highest growth rates are predicted for emerging corridors and areas benefiting from new infrastructure investments, particularly Ibeju-Lekki, Epe, and other growth areas along major transportation routes.
However, experts also warn of several risks including foreign currency volatility, continued oversupply in the luxury segment, potential policy changes, and broader macroeconomic pressures. Most analysts strongly recommend thorough due diligence and professional legal review before any property purchase.
The consensus view suggests that while price growth will continue, the rate of increase may moderate compared to the exceptional 39.5% growth seen in 2024, as the market adjusts to higher price levels and economic headwinds.
How easy is it today for foreign investors and Nigerians living abroad to buy and own property in Lagos, legally and safely?
Foreign investors and Nigerians living abroad can legally purchase property in Lagos, but success requires careful due diligence and proper legal procedures.
Essential requirements include title verification, obtaining Governor's Consent, registered land surveys, and using only registered legal professionals throughout the transaction process. The electronic GIS (e-GIS) system improvements are making purchases safer by providing better title verification.
Key safety measures include avoiding cash-only transactions, verifying all title documents through official channels, and using reputable legal representatives familiar with Lagos property law. Many diaspora buyers work with established property companies that specialize in overseas client services.
While legal pitfalls still exist for unwary buyers, recent government reforms are gradually improving market transparency and reducing fraud risks for properly conducted transactions.
If I wait 12 months before buying, how much more or less would I likely pay, based on current price trends and economic projections?
If you wait 12 months to buy property in Lagos, you should expect to pay 5-15% more on average in growth areas like Lekki, Epe, Ajah, and Sangotedo.
Some prime luxury areas may see slower price growth due to current oversupply conditions, but most market segments are likely to experience continued price increases. The combination of ongoing housing shortages, infrastructure development, and population growth supports upward price pressure.
Rapid inflation and continued currency risk could increase the real USD-equivalent cost even further for foreign buyers. Currency volatility adds an additional layer of uncertainty to future pricing for diaspora investors.
Waiting is unlikely to result in lower prices unless market liquidity contracts sharply or significant policy shocks intervene. The strong fundamentals driving Lagos property demand suggest that delaying purchases will likely result in paying higher prices.
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 property market shows strong growth momentum with 39.5% price increases in 2024 and continued upward pressure expected through 2025-2026.
While rental yields remain attractive at 6-8%, high mortgage rates of 18-24% favor cash buyers and create challenges for leveraged investments in the current economic environment.