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 property prices are dramatically lower than London's, with apartments costing 85-90% less on average.
However, Lagos delivers significantly higher rental yields at 6-8% compared to London's compressed 3.8-5.2% returns, making it attractive for income-focused investors despite higher risks from currency volatility and regulatory uncertainties.
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 apartments average ₦25-45 million ($29,000-$52,000) while London flats cost £444,000-£548,000 ($550,000-$680,000), representing an 85-90% price difference in favor of Lagos.
Lagos offers superior rental yields of 6-8% versus London's 3.8-5.2%, but investors face currency depreciation risks and less mature financing markets compared to London's stability.
| Comparison Factor | Lagos | London |
|---|---|---|
| Average 2-3 bed apartment | ₦25-45M ($29K-$52K) | £444K-£548K ($550K-$680K) |
| Price per sqm (central) | ₦400K-650K ($460-$750) | £10K-15K ($12.6K-$19K) |
| Rental yields | 6-8% (10%+ for short-lets) | 3.8-5.2% |
| Annual property tax | 0.0394% (residential) | £1K-3.1K council tax |
| Stamp duty | 1.5% of value | 2-12% (sliding scale) |
| Mortgage rates | 17-22% (rare availability) | 4-5% (widely available) |
| 10-year price growth | 150%+ since 2015 | 58% since 2015 |
How much does an average apartment in Lagos cost compared to an average apartment in London right now?
Lagos apartments cost dramatically less than London properties, with a typical 2-3 bedroom apartment in Lagos priced between ₦25-45 million ($29,000-$52,000) as of September 2025.
London flats average £444,000-£548,000 ($550,000-$680,000), with central two-bedroom apartments often exceeding £1 million ($1.26 million). This represents an 85-90% price difference in Lagos's favor.
The pricing gap reflects different economic conditions, with Lagos benefiting from lower construction costs, land values, and labor expenses. However, Lagos prices have surged 39.5% in 2024 alone, while London has seen more modest 1% annual appreciation.
For foreign buyers paying in USD or GBP, Lagos represents exceptional value, though currency depreciation risks must be factored into long-term calculations.
It's something we develop in our Nigeria property pack.
What's the price per square meter in Lagos compared to London in both central and suburban areas?
| Location | Lagos Price per sqm | London Price per sqm |
|---|---|---|
| Central areas (Victoria Island/Zone 1-2) | ₦400,000-650,000 ($460-$750) | £10,000-15,000 ($12,600-$19,000) |
| Suburban areas (Lekki/Zone 3-6) | ₦200,000-350,000 ($230-$400) | £5,000-8,000 ($6,300-$10,100) |
| City average | ₦300,000-400,000 ($340-$460) | £7,700 ($9,700) |
| Premium locations | ₦800,000+ ($920+) in Ikoyi | £20,000+ ($25,200+) in Mayfair |
| Emerging areas | ₦150,000-250,000 ($170-$290) | £4,000-6,000 ($5,040-$7,560) |
How much rental income can a landlord expect in Lagos versus London for a two-bedroom apartment?
Lagos two-bedroom apartments generate annual rental income of ₦2.5-6 million ($2,900-$6,900), with prime locations and short-let arrangements earning significantly more.
London two-bedroom flats in central areas earn £2,100-£2,500 monthly (£25,200-£30,000 annually), while outer zone properties generate £1,600-£2,000 monthly. Despite higher absolute rental income in London, the rental yield advantage clearly favors Lagos.
Lagos landlords benefit from strong local demand driven by rapid urbanization and limited housing supply. The city's growing tech sector and business hub status particularly drive demand in areas like Victoria Island, Ikoyi, and Lekki.
London's rental market offers stability and established tenant protections, but affordability constraints limit rental growth potential compared to Lagos's expanding market.
What are the typical yields in both cities and which city offers stronger rental returns today?
Lagos delivers superior rental yields of 6-8% gross annually, with prime short-let properties achieving yields exceeding 10%.
London offers compressed yields of 3.8-5.2% gross, squeezed by high property prices despite strong rental demand. The yield compression in London reflects the maturity of the market and high entry costs.
Lagos yields are driven by rapid population growth, urbanization, and limited housing supply relative to demand. The city's status as West Africa's commercial hub creates sustained rental demand from professionals and expatriates.
While Lagos offers higher current yields, investors must factor in currency depreciation risks, with the Naira losing over 100% against the USD since 2015. London yields, though lower, provide greater stability and currency protection for international investors.
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How do property taxes, stamp duties, and transaction fees differ between Lagos and London?
Lagos maintains significantly lower ongoing tax burdens with the Land Use Charge at just 0.0394% annually for residential properties.
Transaction costs in Lagos include a 1.5% stamp duty, 0.5% registration fee, 1.5% consent fee, and survey costs of ₦150,000-300,000. Capital gains tax applies at 10% on profits.
London imposes higher transaction costs through Stamp Duty Land Tax ranging from 2-12% on a sliding scale, with additional 2% surcharge for overseas buyers. Annual council tax averages £1,000-3,100 depending on property band.
London's mature tax system provides clarity and legal protection, while Lagos offers lower absolute costs but requires careful due diligence on title verification and compliance.
It's something we develop in our Nigeria property pack.
What are the ongoing costs of ownership in both places, like service charges, maintenance, and insurance?
Lagos ongoing costs remain materially lower than London equivalents across all categories.
Service charges in Lagos range from ₦1,000-5,000 per square meter annually, with insurance typically costing around 0.1% of property value yearly. Security and maintenance costs vary by location but average significantly below London levels.
London service charges span £1,200-8,000 annually depending on building facilities and management quality. Insurance for flats costs £150-500 yearly, plus mandatory council tax and potential ground rent obligations.
The cost differential reflects varying service standards, labor costs, and regulatory requirements between the two markets. Lagos properties may require more hands-on management, while London offers more professional property management services.
How do financing options and mortgage rates in Lagos compare with those in London?
Lagos mortgage market remains underdeveloped with limited availability and high rates of 17-22% annually.
Nigerian lenders typically require 30-50% down payments, and most property purchases are cash transactions. The high interest rate environment reflects inflation risks and central bank monetary policy.
London offers mature mortgage markets with rates currently around 4-5% and down payment requirements of 10-25%. Multiple lenders compete on terms, providing options for various buyer profiles including foreign nationals.
The financing gap significantly impacts investment strategies, with Lagos requiring higher upfront capital but potentially offering cash-flow positive investments from day one due to higher yields.
What's the historic price growth in both markets over the past ten years, and what's the current trajectory?
Lagos has experienced explosive price growth of over 150% since 2015, with a remarkable 39.5% surge in 2024 alone.
Current Lagos trajectory shows continued growth of 5-15% forecast for 2025, led by emerging areas like Lekki, Epe, and Ibeju-Lekki as infrastructure development drives demand.
London achieved more modest but steady 58% growth over the same ten-year period, with past year appreciation around 1% overall. Central areas show stagnation while outer boroughs demonstrate higher growth potential.
Five-year London outlook suggests 20-25% growth concentrated in emerging zones, driven by transport improvements and regeneration projects. Lagos growth appears more volatile but potentially more rewarding for risk-tolerant investors.
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 inflation, exchange rate risks, and local economic stability affect property values in Lagos versus London?
Lagos faces significant currency volatility with the Naira depreciating over 100% against the USD since 2015, substantially eroding returns for foreign investors.
Nigerian inflation runs at 24-30% annually, creating both challenges and opportunities as property often serves as an inflation hedge. Local economic shocks remain possible given Nigeria's oil-dependent economy.
London benefits from Pound stability and UK inflation averaging 2-6% yearly. Real estate is viewed as a safe haven asset, though yields are compressed by high entry prices and regulatory stability.
The risk-return profile clearly differs, with Lagos offering higher potential returns alongside higher volatility, while London provides stability and currency protection for international portfolios.
What regulations or restrictions apply to foreign buyers in each city?
Lagos imposes no major restrictions on foreign property ownership, though Governor's consent is required for valid title transfers.
Due diligence becomes critical in Lagos to avoid title disputes, fraudulent transactions, or properties with unclear ownership chains. Professional legal representation is essential for foreign buyers.
London welcomes foreign buyers without ownership restrictions, though non-residents face an additional 2% overseas buyer surcharge on Stamp Duty Land Tax.
Anti-money laundering checks apply to source of funds verification in London, but the regulatory framework provides clear legal protections and established transaction processes.
It's something we develop in our Nigeria property pack.
How does rental demand compare between Lagos and London right now, considering population growth and urbanization?
Lagos demonstrates exceptional rental demand with over 70% of residents renting, driven by rapid population growth and urban migration that outpaces housing supply.
The city's emergence as West Africa's tech and financial hub creates sustained demand from professionals, expatriates, and young urban migrants seeking accommodation in growth corridors.
London maintains steady rental demand fueled by international migration and professional mobility, though affordability constraints limit market expansion. Heavy regulations affect landlord participation.
Lagos benefits from favorable demographics with a young, growing population and expanding middle class, while London faces housing supply constraints and regulatory challenges that may limit rental market growth.
What types of properties (luxury, mid-market, affordable housing) are driving the market in each city today?
- Lagos luxury surge: High-end developments in Ikoyi, Victoria Island, and Lekki attract wealthy Nigerians and expatriates, driving premium pricing
- Mid-market expansion: Areas like Surulere, Ajah, and Yaba serve growing middle class with modern amenities and reasonable pricing
- Affordable urban fringe: Locations like Ikorodu and Epe provide entry-level options for first-time buyers and investors
- Short-let boom: Serviced apartments and vacation rentals capitalize on business travel and tourism growth
- Gated estate preference: Security-focused developments with amenities command premium rents and strong appreciation
- London central luxury: Prime areas like Mayfair and Knightsbridge attract international ultra-high-net-worth individuals
- New build focus: Modern developments in Zones 2-4 appeal to buy-to-let investors seeking higher yields
- Outer borough opportunities: Areas with transport improvements offer better value and growth potential
- Studio and 2-bed dominance: Compact units maximize rental yields in high-demand professional areas
- Family housing shortage: Semis and terraces remain in short supply, driving prices in family-friendly neighborhoods
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 presents a compelling opportunity for investors seeking high yields and capital appreciation, with apartments costing 85-90% less than London equivalents while delivering superior rental returns of 6-8%.
However, currency volatility, regulatory risks, and limited financing options require careful consideration, while London offers stability, mature markets, and easier access to capital despite lower yields and higher entry costs.
Sources
- Average House Price Nigeria
- Average Price per SQM Lagos Nigeria
- UK House Price Index June 2025
- London House Prices per Square Metre
- Average Price SQM London Real Estate
- Average Property Price per SQM London
- Lagos Nigeria Property
- Nigeria Real Estate Market Analysis
- Average Rental Yield Nigeria
- Investing in Nigeria Real Estate 2025