The average rent for a three‑bedroom apartment in Ikoyi, Lagos, has surged to about N25m annually, underscoring the mounting cost pressures in Lagos’ prime residential market, according to Volume 3 of the State of Lagos Housing Market report.
The report disclosed that the past decade has marked a period of profound transformation for the Lagos real estate sector, particularly within its luxury segment.
It further noted that what was once a market with relatively affordable land plots has rapidly matured into a highly competitive and premium investment destination, driven by a dynamic interplay of economic, demographic, and infrastructural forces.
It stated, “N25m average annual rent for a 3‑bedroom in Ikoyi. Over the last ten years, the Lagos property market has undergone a dramatic shift, transitioning from a landscape with more accessible entry points to a highly competitive and premium investment space. This evolution is most vividly illustrated by the consistent and often exponential appreciation of land prices. Historical data unequivocally demonstrates that land values have moved in a singular direction: upward, with no significant reversals. The longer an investor delays, the more expensive real estate becomes.
“Ibeju‑Lekki provides a compelling illustration of this trend. A plot of land in this area, which was available for as low as N500,000 to N1.5m in 2013 (prior to major development hubs like the Lekki Free Trade Zone), saw its value surge to N5m to N10m by 2018 as significant infrastructure projects commenced. By the first quarter of 2025, the same land commanded prices between N25m and N40m, representing a potential 40‑fold increase in value over a decade. Similarly, plots in Lekki Phase 1 that were priced at N10m to N15m in 2005 are now valued at over N400m to N500m. Land prices in Eko Atlantic, which stood at N180m per plot in the early 2000s, have also escalated to over N2bn today.
The report states, “This extraordinary appreciation underscores that real estate in Lagos has become a primary vehicle for wealth accumulation. The market’s dynamism is driven less by a pure housing need for the general populace and more by its function as a high‑yield investment vehicle for the affluent, including a significant proportion of diaspora investors. This establishes luxury real estate as a critical mechanism for wealth generation and preservation in Lagos, particularly for those with patient capital and a long‑term investment horizon.”
The report further noted that the remarkable appreciation and growth in the Lagos luxury real estate market over the last decade can be attributed to several interconnected factors.
It added, “Urbanisation and Population Growth: Lagos’s population has rapidly expanded, reaching nearly 24 million residents, with an annual growth rate of 2.5%. The city experiences an influx of over 6,000 immigrants daily, with approximately 50% choosing to remain, significantly intensifying the demand for housing across all segments, including luxury. The population is projected to exceed 25 million by 2025, further fuelling this demand.”
The State of Lagos Housing Market, 3rd Edition, is published by the Roland Igbinoba Real Foundation for Housing and Urban Development. The first and second editions were published in 2009 and 2016, respectively.
