In a very significant way, the rental market in Lagos demonstrated strong resilience in 2024, recording appreciable price increase amid economic headwinds that literally brought the economy on its knees.
The short-let apartments segment of the residential market had a good showing with a price increase estimated at 200 percent. In 2023, that segment recorded 12.95 percent price rise which rose to 46.4 percent in 2024, representing 200 percent increase.
These hints which are contained in a recent report published by BuyLetLive, an online real estate platform, further authenticates an earlier report by Pison Housing Company which surmised that Lagos is a very active rental market with 80 percent of its over 20 million population living in rented accommodation.
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The BuyLetLive report titled ‘Nigeria Property Price Index Report 2024’ notes that short-let apartments recorded the most significant growth in the year under review, attributing that growth to several factors headlined by inflation.
While Pison Housing Report hinged the growth on Lagos fast-paced urbanization and expanding population, BuyLetLive fingers macro-economic conditions, notably inflation and rising development costs, which forced product suppliers to increase prices in order to remain profitable.
The report reveals that though the average price increase for short-let apartments in Lagos in 2024 stood at 46.4 percent, the growth increase varied across different market nodes in the city. It cited Ikoyi, the most highbrow neighbourhood in the city, as the node with the highest increase at 60 percent.
This was followed by Lekki Phase 1 which saw slightly lower rates; Surulere experienced about 30 percent while Ikeja, an upmarket node on Lagos mainland, saw a 42-percent rise.
Magodo, a middle-class settlement, saw an increase of over 50 percent, but not up to 60 percent. According to the report, areas like Ajah and Yaba followed closely behind, while Victoria Island experienced a slight uptick, though still below 60 percent.
The report shows further that prices in Ikate and Gbagada were a bit more modest, with increases just above 50 percent and just under 40 percent respectively.
In an earlier report, BusinessDay had noted that rental properties, including residential and commercial, would dominate transactions in the real estate market in 2025, taking a retrospective view of market transactions or performance in 2024.
This means that, besides short-let apartments, other residential real estate segments in Lagos also experienced substantial price increases in 2024.
The BuyLetLive report shows that rental apartments saw a notable rise of 47.25 percent, while rental houses followed closely with a 44.85 percent growth. Sales of houses and apartments recorded impressive increases of 39.7 percent and 38.74 percent, respectively, while land prices rose by 27.63 percent.
The report notes that even though Lagos is Nigeria’s smallest state in terms of land mass measuring about 3,475 kilometres or 0.4 percent of Nigeria’s total land mass, the city is home to 27.4 percent of the country’s urban population, estimated at 16.54 million presently.
“This rapid urbanization, combined with Lagos’ status as Nigeria’s economic and commercial hub, continues to draw considerable interest from both local and international property investors,” the report notes further.
Over all, analysts see positive outlook for the real estate sector for both sales and rental markets in 2025. According to Wale Akinola, CEO, Earthbound Real Estate, the sector will offer massive opportunities for investors, developers, and first-time homeowners.
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“With the combination of government-backed initiatives, rising urbanization, technological advancements, and growing interest from both local and diaspora investors, the sector is primed to deliver unprecedented returns.
As the country strives to bridge its housing deficit currently estimated at over 20 million units, 2025 promises to be a pivotal year for the industry, setting a foundation for long-term growth and wealth creation,” he posited.
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