Here’s what spending a night in Banana Island short-let apartment costs

Banana Island, a waterfront residential enclave in Lagos, has continued to maintain its leadership in the real estate market as average rent charged for a short-let apartment hit N329,000 per night in 2025, a new report has revealed.

The report, ‘Lagos Shortlet Market Report 2025,’ compiled by Edala Development, notes that the N329,000 rent per night is a reflection of the enclave’s position as one of Lagos’ most exclusive residential areas.

Edala Development is a real estate company based in Lagos, Nigeria, focused on transforming the real estate investment landscape. The company aims to address the accommodation deficit in Lagos through innovative real estate solutions.

The company’s report observed that as an exclusive destination, Banana Island maintained strong pricing power despite fluctuations in demand, listing waterfront proximity, modern interior designs, and advanced smart-home features as major demand drivers.

Though not a very impressive performance, the report also notes that short-let properties recorded an average occupancy rate of 51 percent during the period, pointing out 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.

Chudi Ubosi, Principal Partner at Ubosi Eleh & Co, had told BusinessDay earlier that Banana Island properties generally command premium prices, citing a well-finished duplex that rents for between N800 million and N100 million per annum, while land prices start from N3.05 million per square metre.

According to the report, three-bedroom apartments dominate the short-let inventory, accounting for 48 percent of listings on the island, followed by two-bedroom units at 25 percent and one-bedroom apartments at 19 percent, which suggests that guests tend to prefer larger accommodation options.

Contrary to what obtains in other locations where demand favours small-unit apartments such as studio and two-bedroom, the report shows that there is strong revenue potential for larger luxury properties within the Banana Island short-let market.

“Larger apartments command significantly higher nightly rates, which translates into stronger annual revenue potential for property owners and investors,” the report says, adding, “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 percent of guests booked for a single night, while 21 percent stayed for two nights.

About 8 percent of guests stayed between seven and 29 nights, reflecting demand from high-level executives and expatriates using the enclave as a temporary residence.

It should be noted, however, that the management of this exclusive enclave banned the operation of short-let apartment rentals, citing security breaches that they found uncomfortable and inconsistent with the high-end lifestyle of the residents.

The Banana Island Property Owners and Residents Association (BIPORAL) announced that all short-let and Airbnb-style rentals had been prohibited, starting February 9, after a raid at George Residences on Femi Pedro Street.