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 offers significantly lower entry costs per square meter compared to Dubai, but Dubai provides superior legal frameworks and currency stability for international investors.
Both cities deliver attractive rental yields and strong capital appreciation, though Lagos presents higher growth potential in emerging areas while Dubai offers more predictable returns and easier transaction processes.
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 costs $550-$2,600 per square meter in prime areas versus Dubai's $3,215-$5,050 per square meter, making Lagos 40-50% cheaper for entry-level investors.
Dubai offers superior currency stability with AED pegged to USD, while Lagos faces naira depreciation risks but compensates with higher growth potential in rapidly developing districts.
| Investment Factor | Lagos | Dubai |
|---|---|---|
| Prime Area Price/m² | $550-$2,600 | $3,215-$5,050 |
| Apartment Rental Yields | 6-10% | 7.3% |
| 5-Year Appreciation (CAGR) | 15-30% | 8-10% |
| Foreign Ownership | 25-year leasehold | Full freehold available |
| Transaction Costs | 15-25% | 6-7% |
| Currency Risk | High (Naira volatility) | Low (USD-pegged) |
| Repatriation | Restricted, approval needed | Unrestricted |
How much does it currently cost per square meter to buy property in Lagos compared to Dubai?
Lagos property costs significantly less per square meter than Dubai, with prime areas ranging from $550 to $2,600 compared to Dubai's $3,215 to $5,050 per square meter.
In Lagos, prime locations like Ikoyi, Victoria Island, and Lekki command between ₦800,000 to ₦3,700,000 per square meter (approximately $550 to $2,600). Secondary and emerging areas offer much lower entry points, starting from ₦200,000 to ₦1,000,000 ($140 to $700) per square meter.
Dubai's central areas typically cost AED 1,100–1,725 per square foot, translating to AED 11,800–18,500 per square meter ($3,215–$5,050). Luxury districts such as Palm Jumeirah and Downtown Dubai command prices at the higher end of this range, while newer developments in areas like Dubai South offer more affordable options.
The price differential means Lagos offers approximately 40-50% lower entry costs for international investors, though this comes with different risk profiles and legal frameworks.
As of September 2025, Lagos continues to present compelling value propositions for investors seeking emerging market exposure with lower capital requirements.
What are the average rental yields in Lagos versus Dubai for both apartments and houses?
Lagos delivers higher rental yields for apartments at 6-10% compared to Dubai's consistent 7.3%, while both cities show similar house rental performance in the 4-8% range.
Lagos apartment yields vary significantly by location, with prime areas like Ikoyi and Victoria Island generating 4.5-6% yields, while emerging districts such as Lekki Phase 2 and Ajah can deliver up to 10% annual returns. This variation reflects the rapid development and gentrification occurring across different Lagos neighborhoods.
Dubai apartments maintain more consistent yields at approximately 7.3% across prime areas, with some luxury developments achieving slightly higher returns. The stability reflects Dubai's mature rental market and regulated pricing structures.
House and villa yields show Dubai averaging around 5% annually, while Lagos houses typically generate 4-8% depending on location and property type. Lagos houses in emerging areas often outperform prime locations due to lower purchase prices relative to rental income.
It's something we develop in our Nigeria property pack.
How quickly have property values in Lagos and Dubai appreciated in the past five years?
Lagos has experienced dramatic capital appreciation with compound annual growth rates of 15-30% in prime areas, significantly outpacing Dubai's steady 8-10% annual appreciation.
Prime Lagos locations including Ikoyi, Banana Island, and Victoria Island have seen property prices double or triple over five years, representing total growth of 180-275%. Even average Lagos areas have maintained 5-15% annual appreciation, driven by rapid urbanization and infrastructure development.
Dubai's property market has delivered more consistent but lower appreciation, with annual growth rates of 8-10% across most areas. Standout districts like Palm Jumeirah and Jumeirah Islands have posted higher compound annual growth rates, with some luxury villas appreciating 66% above previous market peaks.
Top-performing Dubai properties have achieved 75% capital gains over the five-year period, though this represents exceptional rather than typical performance. The Dubai market benefits from greater stability and predictability in appreciation patterns.
Lagos's higher appreciation reflects its emerging market status and rapid economic development, while Dubai's growth patterns indicate a more mature, internationally integrated property market.
What are the main types of properties foreign investors can legally own in Lagos compared to Dubai?
Foreign investors can own various property types in both cities, but Dubai offers full freehold ownership while Lagos typically provides 25-year leaseholds requiring governor's consent.
| Property Type | Lagos Foreign Ownership | Dubai Foreign Ownership |
|---|---|---|
| Apartments/Condos | 25-year leasehold with consent | Full freehold in designated areas |
| Houses/Villas | 25-year leasehold with consent | Full freehold unlimited rights |
| Land | Leasehold only (25 years) | Freehold in approved zones |
| Commercial Property | Subject to consent and restrictions | Full ownership rights |
| Mixed-Use Buildings | Leasehold with consent required | Freehold ownership available |
| Townhouses | 25-year leasehold terms | Full freehold ownership |
| Off-Plan Properties | Available with consent process | Widely available, full ownership |
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What are the upfront costs of buying property in both cities, including taxes, registration fees, and commissions?
Lagos property purchases incur total additional costs of 15-25% above the purchase price, while Dubai maintains more affordable transaction costs of approximately 6-7%.
Lagos upfront costs include legal fees of 5-10%, agency commission of 5-10% paid by the buyer, stamp duty of 0.75-1%, registration fees of 3-5%, governor's consent fees of 8-15%, and variable survey fees depending on the area.
Dubai's transaction structure is more streamlined with a Dubai Land Department fee of 4% of the purchase price, registration fees of approximately AED 2,000-5,000, agency commission of 2% paid by the buyer, trustee fee of AED 4,000, and mortgage registration of 0.25% of the loan amount if financing is used.
The significant difference in transaction costs makes Dubai more attractive for smaller investors or those seeking to minimize upfront expenses, while Lagos's higher costs reflect the more complex regulatory environment and documentation requirements.
Both cities require additional due diligence costs, but Dubai's standardized processes generally result in more predictable expense planning for international buyers.
What are the ongoing costs such as property taxes, maintenance fees, and service charges in Lagos and Dubai?
Dubai offers the advantage of zero annual property tax, while Lagos charges modest Land Use Charges, though both cities require ongoing maintenance and service expenses.
Lagos annual property costs include Land Use Charge (property tax) varying by location and property size, typically ranging from ₦10,000 to ₦100,000 ($7 to $70) for residential properties. Insurance and maintenance costs vary significantly depending on property type, location, and building amenities.
Dubai eliminates annual property tax entirely, providing significant ongoing cost advantages for international investors. However, service charges and maintenance fees for apartments and villas range from AED 10-25 per square meter annually, depending on building quality and amenities provided.
Lagos maintenance costs can be unpredictable, particularly in older buildings or developments with limited management infrastructure, while Dubai's service charges are typically standardized and transparent through homeowners' associations.
Utility costs in Lagos can fluctuate based on power supply reliability and the need for backup generators, while Dubai provides consistent utility services at regulated rates.
How easy is it for foreigners to repatriate rental income and capital gains from Lagos compared to Dubai?
Dubai offers unrestricted repatriation of rental income and capital gains, while Lagos requires Central Bank approval and documentation for foreign investors seeking to transfer funds abroad.
Lagos repatriation processes involve documentation requirements, Central Bank of Nigeria approval procedures, and potential delays due to foreign exchange controls. Currency conversion may be subject to official exchange rates and availability of foreign currency through authorized dealers.
Dubai provides complete freedom for capital and rental income repatriation, supported by international banking infrastructure and no government restrictions on fund transfers. The UAE's well-developed financial system facilitates immediate access to invested capital and returns.
Nigeria's foreign exchange policies can create uncertainty around repatriation timing and conversion rates, particularly during periods of currency pressure or economic instability. Proper registration as a foreign investor is essential for legal repatriation rights in Lagos.
It's something we develop in our Nigeria property pack.
What financing options are available for international investors in Lagos and Dubai, and at what typical interest rates?
Dubai offers comprehensive mortgage options for foreigners with competitive rates of 3-6%, while Lagos provides limited financing primarily through corporate structures at rates exceeding 20%.
Lagos financing for foreign investors is primarily available through locally registered corporate entities, with typical interest rates above 20% annually, short repayment terms, and substantial collateral requirements. Direct mortgage access for individual foreign buyers is extremely limited.
Dubai's banking sector actively serves foreign property buyers with loan-to-value ratios up to 70-80% for freehold properties. Interest rates range from 3-6% for both fixed and variable rate products, with standard mortgage processing fees and documentation requirements.
Dubai banks require proof of income, employment verification, and down payment confirmation, but the process is standardized and transparent for international applicants. Many major international banks operate in Dubai, facilitating financing for their existing customers.
Lagos's high interest rate environment reflects Nigeria's monetary policy and inflation challenges, making cash purchases more attractive for most foreign investors seeking to avoid financing costs.
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 stable are the local currencies and what is the risk of currency depreciation affecting returns in each market?
Dubai's dirham maintains exceptional stability through its USD peg, while Lagos faces significant currency depreciation risk with the volatile naira affecting dollar-denominated returns.
The UAE dirham is pegged to the US dollar, providing minimal foreign exchange risk for international investors and ensuring predictable returns when converted to major international currencies. This stability has been maintained consistently for over two decades.
Nigeria's naira experiences high volatility and depreciation pressure, creating substantial currency risk for foreign investors. While property serves as an inflation hedge within Nigeria, USD-denominated returns can be severely impacted by currency devaluation episodes.
Lagos property investors often view real estate as protection against naira depreciation, but repatriation timing becomes crucial during currency weakness periods. Dollar-earning properties in Lagos can provide some natural hedging against currency risk.
Dubai's currency stability allows for precise investment planning and return projections, while Lagos requires sophisticated currency risk management strategies for international investors seeking dollar-denominated returns.
What are the current rental demand drivers in Lagos versus Dubai, such as population growth, tourism, or expatriate influx?
Lagos benefits from rapid population growth and urbanization driving residential demand, while Dubai's rental market is powered by tourism, expatriate influx, and business expansion.
1. **Lagos Demand Drivers:** - Annual population growth exceeding 3% creating housing shortage - Rural-urban migration increasing demand for rental properties - Growing middle class requiring quality housing options - Diaspora investment and return migration patterns - Limited housing supply relative to demand growth 2. **Dubai Demand Drivers:** - Continuous expatriate worker influx for business opportunities - Tourism industry supporting short-term rental demand - Corporate expansion requiring executive housing - Investment visa programs attracting international residents - Premium lifestyle offerings driving luxury rental demand 3. **Economic Factors:** - Lagos: Oil industry, fintech growth, and commercial hub development - Dubai: Trade, logistics, finance, and tourism sector expansion 4. **Infrastructure Development:** - Lagos: Transportation improvements increasing area accessibility - Dubai: Expo legacy projects and mega-development completions 5. **Regulatory Environment:** - Lagos: Government affordable housing initiatives - Dubai: Investor-friendly policies and long-term residency optionsHow liquid is the property market in each city — how long does it typically take to sell a property at market value?
Dubai maintains a highly liquid property market with sales cycles measured in weeks, while Lagos property transactions typically require several months for completion.
Dubai's property market benefits from robust secondary market activity, standardized transaction processes, and continuous developer off-plan launches creating market depth. Prime locations in Dubai Marina, Downtown, and Palm Jumeirah typically achieve sales within 2-8 weeks at market prices.
Lagos property liquidity varies significantly by location, with premium areas like Ikoyi, Victoria Island, and Lekki Phase 1 attracting faster transactions but still requiring 3-6 months for typical sales. Secondary areas can experience much longer sale periods due to limited buyer pool and financing constraints.
Dubai's international buyer base and institutional investor presence create consistent demand across price segments, while Lagos relies more heavily on local buyers and diaspora investors, creating more volatile liquidity conditions.
Transaction complexity in Lagos, including documentation requirements and approval processes, extends sale timelines compared to Dubai's streamlined digital registration systems and established legal frameworks.
It's something we develop in our Nigeria property pack.
What government policies, incentives, or restrictions are currently in place that impact property investment returns in Lagos and Dubai?
Dubai implements comprehensive investor-friendly policies including freehold ownership and tax incentives, while Lagos requires governor's consent for foreign buyers but offers no significant investment incentives.
| Policy Area | Lagos | Dubai |
|---|---|---|
| Ownership Rights | Leasehold only, governor's consent required | Full freehold in designated areas |
| Property Tax | Land Use Charge (minimal) | Zero annual property tax |
| Residency Benefits | No residency linked to property | Long-term visas for property investors |
| Repatriation Rules | Central Bank approval required | Unrestricted capital movement |
| Investment Incentives | Limited, focus on affordable housing | Multiple investor incentives |
| Transaction Process | Complex approval procedures | Streamlined digital registration |
| Legal Framework | Developing, some uncertainty | Established international standards |
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 offers compelling entry-level investment opportunities with lower capital requirements and higher growth potential, making it attractive for investors seeking emerging market exposure and willing to accept higher risk profiles.
Dubai provides superior stability, legal frameworks, and transaction efficiency, making it ideal for investors prioritizing predictable returns, currency stability, and ease of capital repatriation.
Sources
- BambooRoutes - Average Price Per Square Meter Lagos Nigeria
- Khaleej Times - Average Dubai Property Prices Rise
- Times of India - Dubai Property Prices 2025
- Engel & Völkers - Rental Yield Dubai
- Dubai Housing - Capital Appreciation Last 5 Years
- The African Investor - Lagos Nigeria Market Data
- Vala Homes - Foreigner Property Ownership Lagos
- Engel & Völkers - Buy Property Dubai Foreigner
- The African Investor - Average House Price Nigeria
- Business Day - Lagos Residential Market Potential