Lagos prime land costs $1 million for 507sqm, second most expensive in Africa

The cost of acquiring prime land in Lagos is now about US$1 million for 507 square metres, making it the second-most expensive among 11 major African cities surveyed, according to a report by Estate Intel.

The report compared what US$1 million can purchase across selected African cities. Only Cape Town was more expensive, with the same investment buying about 329 square metres.

The findings highlight the significant premium attached to prime land in Lagos compared with several other major African property markets.

What the report is saying

The report identified Cape Town, Lagos and Casablanca as the three most expensive African cities for prime residential land based on the amount of land US$1 million can purchase.

• Cape Town ranked as the most expensive market, with US$1 million buying approximately 329 square metres of prime residential land. Lagos followed with 507 square metres, while Casablanca ranked third at approximately 633 square metres.
• “Cape Town, Lagos and Casablanca are the most expensive African cities in which to purchase land. Buyers are limited to acquiring approximately 329sqm in Cape Town, 507m2 in Lagos, and 633sqm in Casablanca with US$1,000,000,” the report stated.
• Johannesburg ranked as the most affordable market, with US$1 million buying about 4,537 sqm, followed by Nairobi at 3,124 sqm and Kampala at 1,923 sqm.
• Abuja ranked fourth with 1,298 sqm, while Accra and Dar es Salaam recorded 1,183 sqm and 1,019 sqm, respectively. Abidjan and Cairo recorded 713 sqm and 676 sqm.

The figures are based on prevailing prices in selected prime residential locations and do not represent typical plot sizes in the respective cities, the report noted.

Lagos land prices driven by demand and limited supply

Estate Intel linked the high cost of prime land in Lagos to sustained demand for premium locations, limited land supply and infrastructure gaps.

The analysis covered Ikoyi, Victoria Island and Lekki Phase 1 in Lagos, where demand for luxury residential developments continues to support land values.

• Strong demand for prime locations has increased competition for available land.
• Infrastructure gaps have concentrated demand in areas with relatively better infrastructure.
• Developers building luxury apartments are competing for limited prime sites.
• Strong sales, occupancy and profit margins have encouraged developers to acquire more land.

The report also found that Lagos has a significant gap between prime land values and local purchasing power, with average prime land prices above US$1,900 per sqm.

Luxury housing widens affordability gap

The report further noted that the concentration of new housing supply in luxury and deluxe developments has widened the affordability gap across African cities.

In Lagos, limited access to affordable mortgages is also making homeownership difficult, as high interest rates increase the cost of long-term housing finance.

The report noted that even some properties marketed as affordable remain beyond the reach of average households when compared with prevailing incomes.

Get up to speed

Recent residential market data also shows the continued appreciation of land values in Lagos’ prime locations.

According to the Lagos Island Residential Market Report 2026 by Lagos Realty, average land prices reached N2.5 million per square metre in Ikoyi, N2.1 million in Victoria Island, N1.5 million in Lekki Phase 1 and N955,000 in Ikate.

The report attributed the increases to rising demand, limited land availability and increased developer activity.

Land prices have also recorded significant growth since 2022:

• Ikoyi increased by 81.48%.
• Victoria Island increased by 197.87%.
• Lekki Phase 1 increased by 256.53%.
• Ikate increased by 148.05%.

The figures highlight the sustained appreciation of land in Lagos’ prime residential locations, where limited supply and strong demand continue to support higher property values.

What you should know

Luxury property prices in Lagos do not always translate into better public infrastructure or services for residents, according to State of Lagos Housing Market Report 2025 Vol. 3.

Residents in Banana Island, Ikoyi, Lekki Phase 1 and Victoria Island still face unreliable water supply and frequent power outages.

• The report also identifies inadequate drainage and poor waste management as persistent challenges in some high-end neighbourhoods.
• Many residents rely on private boreholes, water tankers and diesel generators to make up for gaps in public services.
• The report describes this as a “premium for dysfunction”, where residents pay for private alternatives to basic services alongside high property costs.

The report warns that the gap between luxury housing prices and infrastructure quality could increasingly influence how buyers assess value and the long-term attractiveness of these neighbourhoods.