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 market presents both significant opportunities and notable risks as of September 2025.
Central areas like Ikoyi command ₦980,000 per square meter while emerging zones like Epe offer properties at ₦210,000 per square meter, creating diverse investment and living options across different budgets and risk profiles.
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 rose 39.5% in 2024, with central areas like Ikoyi averaging ₦980,000/sqm while emerging zones like Epe offer opportunities at ₦210,000/sqm.
Rental yields range from 5-8% in luxury areas to 8-10% in mid-market zones, with infrastructure projects driving fastest appreciation in Lekki, Ajah, and Epe areas.
| Area | Residential Price (₦/sqm) | Rental Yield Range | Resale Timeline |
|---|---|---|---|
| Ikoyi (Central) | ₦980,000 | 5-8% | 3-6+ months |
| Victoria Island | ₦800,000+ | 5-8% | 3-6+ months |
| Lekki | ₦615,000 | 6-10% | 1-3 months |
| Ajah | ₦470,000 | 6-10% | 1-3 months |
| Yaba/Surulere | ₦490,000 | 6-10% | 1-3 months |
| Epe (Emerging) | ₦210,000 | 8-10%+ | Variable |
What's the current average price per square meter for different property types in Lagos right now?
Lagos property prices vary dramatically by location and property type as of September 2025.
Central premium areas command the highest prices, with Ikoyi residential properties averaging ₦980,000 per square meter and Victoria Island properties exceeding ₦800,000 per square meter. These areas represent the luxury segment of Lagos real estate market.
Mid-market zones offer more accessible pricing, with Lekki averaging ₦615,000 per square meter, Ajah at ₦470,000 per square meter, and Mainland neighborhoods like Yaba averaging ₦490,000 per square meter. These areas balance affordability with decent infrastructure and amenities.
Emerging and developing zones present the most affordable options, with Epe properties averaging just ₦210,000 per square meter. These areas offer significant upside potential but come with infrastructure and liquidity considerations.
Land prices follow similar patterns, ranging from ₦210,000 per square meter in Ikoyi down to ₦11,000 per square meter in developing areas like Epe.
How do short-term price trends compare with medium-term and long-term forecasts across Lagos?
Lagos property market experienced exceptional growth in 2024 with prices rising 39.5% citywide.
Short-term forecasts through 2026 predict annual growth of 5-15% citywide, with the fastest appreciation expected in Ibeju-Lekki, Epe, Lekki, and Ajah areas. This growth is driven by massive infrastructure projects and continued population influx into these zones.
Medium-term trends remain robust due to Lagos's rapid urbanization, with over 500,000 new residents arriving annually and persistent housing shortages maintaining upward pressure on prices. The demographic momentum supports sustained demand across all property segments.
Long-term projections are particularly bullish for areas benefiting from new infrastructure investments. Zones like Ibeju-Lekki and Epe, which benefit from new highways, port expansion, and the planned international airport, are forecasted for 10-20% annual appreciation as Lagos's population is set to double by 2050.
It's something we develop in our Nigeria property pack.
Which neighborhoods are currently appreciating fastest, and which ones are stagnant or declining?
The fastest appreciating neighborhoods are concentrated in the emerging corridors of Lagos.
Ibeju-Lekki leads appreciation rates due to major infrastructure developments including Dangote Refinery, Lekki Deep Sea Port, and the planned Lekki-Epe Airport. Epe follows closely, benefiting from coastal highway development and proximity to new industrial zones.
Other rapidly appreciating areas include Lekki (all phases), Ajah, Sangotedo, and established Mainland areas like Yaba, Surulere, Ogudu, and Gbagada. These neighborhoods benefit from improved infrastructure, proximity to business hubs, and new residential developments.
Stagnant or slower-growth areas are primarily the established luxury zones including Ikoyi, Victoria Island, and Asokoro. These premium areas show flatter growth rates of 5-8% annually due to high base prices and supply saturation in the top market segment.
The divergence reflects Lagos's expansion pattern, with growth moving outward from the traditional centers toward emerging corridors with better infrastructure development potential.
What's the rental yield in different areas for apartments, houses, and luxury properties?
Rental yields in Lagos vary significantly by area and property type, with mid-market zones offering the best returns.
| Area Type | Rental Yield Range | Property Examples | Annual Rent Range |
|---|---|---|---|
| Mid-market (Lekki, Ajah, Yaba) | 6-10% | 1-3 bedroom apartments/terraces | ₦800k-₦5m |
| Luxury (Ikoyi, VI) | 5-8% | Premium apartments/houses | ₦3m-₦10m+ |
| Emerging zones (Epe, Sangotedo) | 8-10%+ | New developments | ₦600k-₦3m |
| Established suburbs (Surulere) | 6-10% | Family homes | ₦1m-₦4m |
| Business districts (Ikeja) | 7-10% | Professional apartments | ₦1.2m-₦4m |
How do property prices compare between central Lagos areas and suburban zones?
The price differential between central Lagos and suburban zones is substantial and reflects infrastructure, amenities, and prestige factors.
Central Lagos areas like Ikoyi and Victoria Island command premium pricing, with residential properties in Ikoyi averaging ₦980,000 per square meter and Victoria Island exceeding ₦800,000 per square meter. These areas offer established infrastructure, proximity to business districts, and prestige value.
Suburban zones offer significantly better value, with Lekki at ₦615,000 per square meter representing a 37% discount to Ikoyi, while Ajah at ₦470,000 per square meter offers 52% savings. Mainland areas like Yaba provide middle-ground pricing at ₦490,000 per square meter.
Emerging suburban zones like Epe offer the most dramatic savings at ₦210,000 per square meter, representing a 79% discount to Ikoyi prices. However, these areas require careful consideration of infrastructure development timelines and accessibility.
The price gap reflects Lagos's development pattern, with suburban zones increasingly attractive as infrastructure improves and traffic congestion makes central living less appealing for many residents.
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What are the main infrastructure projects that could impact property values in the next 3-10 years?
Several major infrastructure projects are reshaping Lagos's property landscape through 2035.
The Dangote Refinery, Lekki Deep Sea Port, and Lekki Free Trade Zone form the cornerstone of eastern Lagos development, driving massive appreciation in Ibeju-Lekki and surrounding areas. These projects are creating new employment centers and industrial zones.
Transportation infrastructure includes the Fourth Mainland Bridge, which will improve connectivity between the mainland and islands, and the planned Lekki-Epe Airport, which positions eastern corridors for international business and tourism growth.
The Lagos State government's 2025-2035 budget prioritizes new road networks, transport corridors, and housing decentralization initiatives. These investments are pushing development into previously underserved areas and improving accessibility across the metropolitan area.
Coastal highway development and new expressway projects are particularly impactful for areas like Epe, Sangotedo, and Ikorodu, creating new growth corridors and reducing travel times to central business districts.
It's something we develop in our Nigeria property pack.
How much demand is coming from owner-occupiers versus investors?
Lagos property demand shows a healthy mix of owner-occupiers and investors, with different segments dominating various price ranges.
Owner-occupier demand primarily comes from urban professionals and growing families seeking properties closer to employment centers and quality amenities. This segment drives demand for mid-market apartments and family homes in areas with good schools, healthcare facilities, and transport links.
Investor demand includes both local and diaspora buyers targeting rental-focused properties in mid-market zones and emerging areas where yields are highest. Properties near business districts, universities, and major transport routes are particularly popular with this segment.
Short-term rental investors are increasingly active, focusing on well-located properties suitable for Airbnb and corporate housing, especially in areas with business and tourist activity. This segment particularly targets 1-2 bedroom units in accessible locations.
The balance varies by area, with luxury zones seeing more investor activity while family-oriented suburbs attract more owner-occupiers seeking long-term homes with good schools and community amenities.
What level of liquidity exists in the Lagos property market?
Liquidity in Lagos property market varies significantly by location, price point, and property type.
Prime central properties in Ikoyi and Victoria Island typically take 3-6+ months to resell due to high pricing and a limited pool of qualified buyers. The luxury segment requires more time for marketing and buyer qualification processes.
Mid-market zones including Lekki, Ajah, and Mainland areas like Yaba show better liquidity, with average resale times of 1-3 months for well-finished apartments and terraced houses. This segment benefits from broader buyer interest and more accessible pricing.
Plots and undeveloped land in outlying suburbs like Epe and Ikorodu can take longer to sell, though liquidity is improving as infrastructure development and population growth move outward from central areas.
Market conditions, property condition, pricing strategy, and documentation quality all significantly impact actual sale timelines, with properly priced and documented properties typically selling faster across all segments.
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 risks around currency, financing costs, and inflation?
Nigerian economic conditions present significant risks that buyers must carefully consider as of September 2025.
Currency volatility poses substantial foreign exchange risk for overseas buyers and developers, with the Naira's depreciation driving up imported construction material costs and affecting property valuations for international investors.
Inflation reached 31.7% in February 2025, impacting construction costs, reducing buyer affordability, and pushing up both rental rates and property sale prices. Real estate offers partial inflation hedging but creates affordability challenges for local buyers.
Financing costs are prohibitively high with the Central Bank's Monetary Policy Rate at 27%, making mortgages expensive and limiting access to local credit for both homebuyers and property developers. This constraint affects market liquidity and development financing.
Additional risks include regulatory uncertainty, legal title complications, and potential policy changes affecting foreign property ownership. These factors require careful due diligence and professional legal guidance for any property transaction.
If your budget is under $100k, which property types and areas are realistically available?
A $100,000 budget (approximately ₦150 million) opens several property options in Lagos's developing areas.
1. **Land plots of 500-1,000 square meters** in emerging areas like Epe, Ikorodu, Badagry, Agbado, and Ojo2. **Basic 1-2 bedroom apartments** in developing neighborhoods with potential for appreciation3. **Small terraced houses** in outlying areas with improving infrastructure access4. **Off-plan properties** with payment plans in emerging developments5. **Mixed-use properties** combining residential and small commercial spaces in growing areasMore developed apartments and terraces in established areas like Lekki, Ajah, or Yaba typically start above $120,000, making them less accessible for this budget range. Entry-level options tend to concentrate in rapidly developing zones where infrastructure improvements are planned or underway.
It's something we develop in our Nigeria property pack.
If you're buying primarily for rental income, where should you focus right now?
Rental income investors should target mid-market zones with strong professional demand and improving infrastructure.
Prime rental zones include Lekki Phase 1, Ajah, Yaba, Surulere, Ikeja, Gbagada, Magodo, and Ogudu. These areas offer rental yields of 6-10% with steady demand from working professionals and growing families.
Property formats in highest demand include 1-2 bedroom apartments for young professionals and 3-4 bedroom family homes for growing households. Well-managed short-term rental units work particularly well near business districts and tech hubs.
Areas near universities, business districts, and major transport routes command premium rents and maintain higher occupancy rates. Properties with modern amenities, reliable utilities, and security features are most competitive in the rental market.
Emerging areas like Sangotedo and select parts of Epe offer higher potential yields but require careful assessment of infrastructure development timelines and tenant demand patterns.
If you're buying to live long-term, which areas balance affordability, infrastructure, and future growth?
Long-term residents should prioritize emerging areas with planned infrastructure improvements and community development.
Top recommendations include Ajah, Sangotedo, Gbagada, Lekki Phase 2, Ogudu, Magodo, and Yaba for their balance of current affordability and future growth potential. These areas offer reasonable pricing while benefiting from ongoing infrastructure investments.
Select parts of Epe and Ikorodu with good transport links present excellent value for buyers who can accept longer commutes in exchange for significant cost savings and appreciation potential as infrastructure develops.
Key considerations include proximity to quality schools, healthcare facilities, shopping centers, and reliable utilities. Areas with planned road improvements, new transport links, and government development focus offer the best long-term living prospects.
Security, community development, and environmental factors should also influence decisions, with established residential communities often providing better long-term living experiences than purely investment-focused developments.
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 offers compelling opportunities for both investors and owner-occupiers, with emerging areas showing the strongest growth potential while established zones provide stability and liquidity.
Success requires careful consideration of currency risks, financing constraints, and infrastructure development timelines, but the fundamental demand drivers remain strong given Lagos's rapid population growth and economic development.
Sources
- Nigeria Property Price Index August 2025
- Lagos Nigeria Price Forecasts
- Top 3 Real Estate Investment Threats Nigeria 2025
- Lagos Nigeria Property Analysis
- Ikoyi vs Victoria Island Real Estate 2025
- Lekki vs Ikoyi Luxury Living Comparison
- Lagos 2025 Budget Infrastructure Impact
- Lagos Real Estate Investment from Abroad
- Cities with Highest Rental Yields Nigeria
- Inflation Effects on Real Estate Nigeria