The average annual rent for a three‑bedroom apartment in Ikoyi, Lagos, has soared to approximately N25 million, highlighting the growing cost pressures in the city’s prime residential market, according to Volume 3 of the State of Lagos Housing Market report.

The report reveals that the past decade has seen a profound transformation in Lagos’ real estate sector, especially within the luxury segment. Once a market with relatively accessible land plots, Lagos has rapidly evolved into a highly competitive, premium investment destination, driven by economic, demographic, and infrastructural developments.

“Over the last ten years, the Lagos property market has shifted dramatically,” the report states. “Land values have consistently appreciated, leaving little opportunity for reversal. The longer investors wait, the higher property prices climb.”

Ibeju‑Lekki exemplifies this trend. A plot of land priced between N500,000 and N1.5 million in 2013 surged to N5 million–N10 million by 2018 following major infrastructural developments. By early 2025, the same land now commands between N25 million and N40 million—a potential 40‑fold increase in just a decade. Similarly, plots in Lekki Phase 1, valued at N10–15 million in 2005, are now priced at N400–500 million. In Eko Atlantic, early‑2000s plots at N180 million each have climbed to over N2 billion today.

“This extraordinary growth underscores that real estate in Lagos is now a key vehicle for wealth accumulation,” the report adds. “Luxury properties increasingly serve as high-yield investment opportunities for affluent and diaspora investors, rather than merely fulfilling housing needs. Those with long-term investment horizons stand to benefit the most.”

The report also identifies urbanization and population growth as major drivers of the market. Lagos’ population now approaches 24 million, growing at an annual rate of 2.5%, with more than 6,000 new residents arriving daily—half of whom settle in the city. The population is expected to exceed 25 million by 2025, further intensifying housing demand, including in the luxury segment.

Published by the Roland Igbinoba Real Foundation for Housing and Urban Development, the third edition of the State of Lagos Housing Market follows previous reports released in 2009 and 2016.