Short-let apartment prices in Lagos rose by over 200% in 2024, following a modest 12.95% increase in 2023 and a notable 46.4% rise in 2024.
This significant surge marks the highest growth rate in the city’s residential real estate sector.
This data comes from the BuyLetLive 2024 Nigeria Property Price Index Report, which highlights several key factors driving the broader surge in Lagos’ residential market.
“Short-let apartments recorded the most notable growth, with prices surging from 12.95% in 2023 to 46.40% in 2024, reflecting an increase of over 200%,” the report read in part.
The report attributes the price hikes across various property types to inflation and rising development costs, which have compelled developers to increase prices in order to maintain profitability.
While the average price increase for short-let apartments in Lagos in 2024 stood at 46.4%, the growth varied across different areas. According to the report’s graph, Ikoyi saw the highest increase at 60%, followed by Lekki Phase 1 at slightly lower rates. Surulere experienced around 30%, while Ikeja saw a 42% rise.
Magodo saw an increase of over 50%, but not quite reaching 60%. Areas like Ajah and Yaba followed closely behind, while Victoria Island experienced a slight uptick, though still below 60%. Prices in Ikate and Gbagada were a bit more modest, with increases just above 50% and just under 40%, respectively.
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Beyond short-let apartments, other residential real estate options in Lagos have also experienced substantial price increases in 2024.
Rental apartments saw a notable rise of 47.25%, while rental houses followed closely with a 44.85% growth. Sales of houses and apartments recorded impressive increases of 39.7% and 38.74%, respectively, and land prices climbed by 27.63%.
- The BuyLetLive report pointed out that Lagos, although Nigeria’s smallest state in terms of geographical size, is home to 27.4% of the nation’s urban population, now estimated at 16.54 million. This rapid urbanization, combined with Lagos’ status as the country’s economic and commercial hub, continues to draw considerable interest from both local and international property investors.
- The report further revealed that the residential real estate sector remains the most attractive investment opportunity in Lagos, with millennials—individuals born between 1981 and 1996—driving demand in the rental market. Meanwhile, baby boomers (born between 1946 and 1964) continue to dominate sales transactions, significantly contributing to the sector’s activity.
Infrastructure improvements, including the renovation of the Third Mainland Bridge and the construction of affordable residential apartments, have supported the real estate market.
While these efforts aim to ease the pressure of Lagos’ growing population, rising costs and shifting investor priorities have prompted some to exit, altering the investment landscape.
