The average nightly rate for short-let apartments in Banana Island in 2025 hit N329,000, reflecting the enclave’s position as one of Lagos’ most exclusive residential areas.
This is according to the Lagos Shortlet Market Report 2025 by Edala Development.
The report noted that the enclave maintained strong pricing power despite fluctuations in demand.
It also noted that waterfront proximity, modern interior designs, and advanced smart-home features continue to influence pricing and performance in the island’s high-end short-let market.
What the data is saying
The report noted that the average nightly rate for shortlet apartments in Banana Island stood at N329,000 in 2025, while properties recorded an average occupancy rate of 51% during the period. The analysis indicates that despite fluctuations in demand, the enclave continues to command premium prices due to its reputation as one of Lagos’ most secure and exclusive residential districts.
- “In our 2025 study, we tracked 147 active shortlet listings within this specialized market. The data reveals an average occupancy rate of 51%, with the average daily rate across all bedroom sizes standing at N329K.
- “Pricing on the island is heavily influenced by waterfront proximity and the caliber of smart-home features integrated into the buildings.”
In terms of property types, the report found that three-bedroom apartments dominate the shortlet inventory, accounting for 48% of listings on the island, followed by two-bedroom units at 25% and one-bedroom apartments at 19%, suggesting that guests tend to prefer larger accommodation options.
Revenue potential varies widely across property sizes
The analysis also highlighted strong revenue potential for larger luxury properties within the Banana Island shortlet market. Larger apartments command significantly higher nightly rates, which translates into stronger annual revenue potential for property owners and investors.
- Five-bedroom apartments recorded the highest rates, with an average daily rate of N479,000, translating to an estimated annual revenue of about N88.4 million.
- One-bedroom units averaged N193,000 per night, generating approximately N35.7 million annually.
- Guest booking patterns showed that 53% of guests booked for a single night, while 21% stayed for two nights.
About 8% of guests stayed between seven and 29 nights, reflecting demand from high-level executives and expatriates using the enclave as a temporary residence.
The report also noted a seasonal pattern in occupancy levels, with bookings rising significantly toward the end of the year.
More insights
Recent developments have added a new dimension to the shortlet market in Banana Island, particularly around security concerns and estate management policies. These developments have sparked wider debates about the role of short-term rentals within high-end residential communities.
- On February 10, 2026, reports confirmed that short-let rentals had been banned in Banana Island following security concerns within the estate.
- The Banana Island Property Owners and Residents Association announced that all short-let and Airbnb-style rentals would be prohibited starting February 9 after a raid at George Residences on Femi Pedro Street.
- Reports indicated that suspects had allegedly used short-let apartments as operational bases for theft activities across the estate over several months.
The association stated that the ban aims to restore security and protect the privacy of residents in the high-net-worth community.
What you should know
The Lagos shortlet market generated an estimated N281.03 billion in revenue in 2025, according to Edala Development’s Lagos Shortlet Market Report 2025.
- The figure came slightly below the N300 billion revenue projection forecast in the company’s 2024 report, suggesting the market is entering a more mature phase with stronger competition.
- The report estimated the market generated N281.03 billion in revenue in 2025, up from N264.3 billion in 2024.
- Over the past five years, the sector has expanded rapidly, driven by corporate travellers, tourists, digital nomads, and investors seeking high-yield real estate opportunities.
- Activity was initially concentrated in Victoria Island, Lekki, and Ikoyi, but has expanded to mainland areas such as Yaba and Surulere.
Yaba recorded the strongest growth in 2025 with a 25% increase in demand driven by the city’s growing tech ecosystem.
Estate-level restrictions, such as the February 2026 ban on shortlets in Banana Island, along with rising regulatory scrutiny, are expected to continue shaping the outlook for Lagos’ rapidly evolving short-term rental market.
