Nigeria’s housing sector is under severe strain from inflation, with Lagos’ prime real estate market showing the sharpest increases.
According to the State of Lagos Housing Market Report (Volume 3), the average annual rent for a three‑bedroom apartment in Ikoyi has now reached about ₦25 million, underscoring the escalating cost pressures in the city’s luxury segment.
The report highlights how Lagos’ property market has transformed over the past decade. Once relatively affordable, land and housing in the state have evolved into premium investment assets, shaped by economic growth, rapid urbanisation, and major infrastructure projects.
“Land prices have consistently risen with little sign of reversal. Investors who delay purchases increasingly face higher entry costs,” the report noted.
The report cites Ibeju‑Lekki as a striking example of this surge.
Land that sold for between ₦500,000 and ₦1.5 million in 2013 rose to ₦5–₦10 million by 2018. By the first quarter of 2025, prices ranged between ₦25–₦40 million, representing a fortyfold increase in just ten years.
Plots in Lekki Phase 1 that sold for ₦10–₦15 million in 2005 are now valued at ₦400–₦500 million, while land in Eko Atlantic has climbed from about ₦180 million in the early 2000s to more than ₦2 billion.
Real Estate as Wealth Creation
The report concludes that Lagos real estate has become a major vehicle for wealth creation.
Many investors, including members of the Nigerian diaspora, now view property as a high‑yield, long‑term asset rather than simply housing.
Several factors underpin this surge. Lagos’ population is nearing 24 million, growing at 2.5% annually, with about 6,000 new arrivals daily and half choosing to stay.
With projections showing the population exceeding 25 million by 2025, demand across all housing categories continues to intensify.
The State of Lagos Housing Market Report (3rd Edition) was published by the Roland Igbinoba Real Foundation for Housing and Urban Development, following earlier editions released in 2009 and 2016.
Rate, Like 👍, Comment 💬, Share this article, Follow us on our social media handles, and Submit your own story to get featured and earn rewards!
WhatsApp Channel
Telegram Channel
