Land prices in Banana Island surged by more than 540% between 2020 and 2025, reaching approximately N3.05 million per square metre in 2025.
This is according to the Lagos Residential Market Report 2025 by Edala Development, a real estate company.
The report highlights the strong demand for one of Lagos’ most exclusive residential locations over the five-year period.
The sharp increase reflects limited land availability and the continued demand for prime real estate in the area.
What the report is saying
According to the report, land prices in Banana Island experienced the most dramatic growth among the locations reviewed, rising from an average of N470,000 per square metre in 2020 to about N3.05 million per square metre in 2025.
The report highlighted the strong performance of the area’s luxury residential market, where ultra-luxury mansions and detached houses, many priced in US dollars, continued to attract high demand.
“Land prices in Banana Island remain among the most valuable real estate assets in Nigeria. The price per square meter increased by over 540%, rising from an average of N470,000 in 2020 to an impressive N3.05 million by 2025,” the report read in part.
The Banana Island rental market recorded significant growth over the five-year period. A three-bedroom home that rented for N11 million in 2020 increased to N27.5 million in 2025, while a four-bedroom property rose from N18 million to N30.5 million. Two-bedroom apartments more than doubled in rental value during the same period.
In the sales market, a four-bedroom home appreciated from N350 million in 2020 to N800 million in 2025, three-bedroom properties rose to about N600 million, and two-bedroom apartments were valued at around N385 million by 2025.
Strong growth across rental markets
The report further noted that rental values across Ikoyi, Victoria Island, and Lekki Phase 1 showed consistent and significant growth between 2020 and 2025.
- In Ikoyi, one-bedroom apartments rose from N2 million in 2020 to N8 million in 2025, two-bedroom units increased by 150%, three-bedroom homes grew from N8.5 million to N25.5 million, and four-bedroom properties averaged N28.5 million.
- Victoria Island recorded similar trends, with four-bedroom rentals increasing from N5.4 million to N20 million, and three-bedroom units rising by over 212% to N15 million.
- Lekki Phase 1 also saw notable growth, with four-bedroom homes rising from N4.3 million to N13.5 million, three-bedroom units to N11.3 million, two-bedroom apartments to N8.5 million, and one-bedroom units climbing to N4.5 million, reflecting strong demand across these Lagos high-end residential hubs.
Sales markets deliver impressive capital appreciation
The report also highlighted substantial gains in the sales market for Ikoyi, Victoria Island, and Lekki Phase 1. In Ikoyi, one-bedroom apartments rose from N80 million to N170 million, two-bedroom units from N102 million to N350 million, three-bedroom homes from N255 million to N550 million, and four-bedroom properties from N300 million to N750 million.
Victoria Island saw similar growth, with four-bedroom homes rising from N225 million to N750 million, three-bedroom units to N500 million, and two-bedroom apartments valued around N350 million.
Lekki Phase 1 sales also performed strongly, with two-bedroom apartments surging from N70.5 million to N247.5 million, and three-bedroom homes rising from N102 million to N315.3 million. Larger properties and those with verified Certificates of Occupancy commanded higher prices, reflecting buyer confidence and the area’s strong investment appeal.
Land values soar across prime locations
The report showed that land prices also recorded dramatic growth across Ikoyi, Victoria Island, and Lekki Phase 1.
In Ikoyi, the average per square metre increased from N420,000 in 2020 to N2.15 million in 2025, while Victoria Island rose from N350,000 to N1.55 million per sqm.
Lekki Phase 1 also saw significant appreciation, climbing from N264,000 to N1.1 million per square metre, a 316% increase. These trends reflect strong demand, limited availability of premium plots, and the strategic locations of these high-end residential areas.
What you should know
Nairametrics had earlier noted, based on a report from Estate Intel, that Lagos’ luxury residential market delivered strong sales growth over the past five years.
Eko Atlantic led with a 59.5% sales growth rate, highlighting its status as a prime destination for luxury real estate investments.
Ikoyi followed closely with a 58.14% increase, reflecting sustained demand from affluent buyers.
Banana Island recorded a 55.30% growth, driven by limited waterfront properties and ultra-luxury residences, aligning with Edala Development’s observations of rising land, rental, and sales values in the area.
Victoria Island saw a 45.04% rise, highlighting steady demand in its mixed-use commercial and residential environment.
Overall, these prime Lagos locations delivered annualized gains of 38%–60% in naira, illustrating the resilience and continued attractiveness of the city’s high-end property market.
