The Lagos shortlet market generated an estimated N281.03 billion in revenue in 2025, reflecting sustained activity in the city’s short-term rental sector.
This disclosure was contained in The Lagos Shortlet Market Report 2025 by Edala Development, released in March.
The figure came slightly below the N300 billion revenue projection forecast in Edala Development’s 2024 report, highlighting a maturing market where strong demand persists amid rising competition and an expanding supply across Lagos’ short-let ecosystem.
What the report is saying
The revenue estimates were based on research conducted by Edala Research, a firm that tracks real estate and hospitality trends across Nigeria’s emerging submarkets. The study analyzed 6,398 listed units across Lagos, forming the basis for the reported revenue figures.
The report noted that the Lagos shortlet market generated an estimated N281.03 billion in revenue in 2025, up from N264.3 billion in 2024, reflecting continued growth amid a maturing market.
Temidayo Oloyede, co-founder and CEO of Edala Development, said the market is now transitioning from rapid expansion to heightened competition among operators.
- “In our 2024 outlook, we projected the Lagos short-let market would reach N300 billion in total revenue by 2025. While the market continued to expand, our tracked data indicates that 2025 revenue closed at an estimated N281.03 billion.
- “This shortfall reflects a maturing market where demand remains strong, but the rapid increase in supply is making it more difficult for every property to maintain high occupancy levels.”
The report highlighted that while revenue growth continues, market performance is increasingly tied to professional management, operational standards, and regulatory compliance.
Market overview and trends
The study showed that Lagos’ shortlet sector has grown rapidly over the past five years, driven by corporate travellers, tourists, digital nomads, and investors seeking high-yield real estate opportunities.
- Early activity was concentrated in Victoria Island, Lekki, and Ikoyi, but the market has expanded to mainland areas such as Yaba and Surulere, where affordability and proximity to Lagos’ tech ecosystem are attracting tenants.
- High occupancy and revenue growth characterised the initial years. However, the surge in new listings has increased competition. Operators are now investing in structured branding, professional management, and consistent hospitality standards to maintain performance.
Estate-specific rules, such as the February 2026 ban on shortlets in Banana Island, combined with rising regulatory scrutiny, continue to shape the sector’s outlook.
- The report noted that Yaba recorded the strongest growth in 2025, with a 25% increase in demand fueled by the tech ecosystem. Studio apartments now make up half of Yaba’s total inventory, offering lower maintenance costs and resilient revenue potential.
Peak periods, such as “Detty December,” drive near-full occupancy in prime Island locations, supported by returning diaspora members. The study also highlighted the rise of “Branded Residences”, where multi-location chains with professional management are increasingly replacing individual “one-off” listings.
What you should know
An earlier Nairametrics report revealed that short-let apartments in Lagos are increasing rapidly, with landlords and investors increasingly favouring shortlets over conventional long-term rentals.
- Factors driving growth include higher returns, lower tenant risks, and strong demand from Nigerians in the diaspora. Expanding availability across multiple neighborhoods, coupled with luxury and professionally managed units, underscores the sector’s competitiveness.
- Short-let properties also allow for faster cost recovery, lower maintenance challenges, and greater flexibility for owners, making them a preferred investment compared with traditional residential leases.
For example, the Edala report cited a two-bedroom unit in Yaba that rents for about N3 million annually as a residence but can earn roughly N19.7 million yearly as a shortlet, based on an average daily rate of N100,000 and strong occupancy.
