LAGOS SHORT-LET MARKET HITS N281BN DESPITE INFLATION, COMPETITION
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By: Fasasi Hammad
Lagos’ short-let sector generated an estimated N281.03bn in 2025, maintaining stability despite rising inflation and growing competition, a report by Edala Development has revealed.
According to the Lagos Shortlet Market Report 2025, the era of rapid, loosely regulated expansion is tapering off, but the sector continues to play a significant role in the city’s real estate market, with revenue expected to rise to N285.5bn in 2026.
Strong population growth and economic activity continue to drive demand. With nearly 27 million residents, Lagos remains Africa’s largest commercial hub, attracting both local and international investors.
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The report identified Lekki as the leading revenue hub, with Phase I and II generating close to N165bn in 2025, followed by Victoria Island, where earnings nearly doubled to N34.8bn.
In contrast, Banana Island recorded a sharp decline to N9bn due to regulatory restrictions, with projections indicating a further drop to N1.5bn in 2026 after the suspension of short-let operations from February.
Edala noted that the market is shifting from opportunistic growth to a more structured, compliance-driven system, where success depends on strategic investment, professional management, and adherence to regulations.
On the mainland, areas such as Ikeja, Yaba, and Gbagada are gaining traction with steady revenue growth, while Surulere saw a decline to N6.15bn amid ongoing market adjustments.
Infrastructure development is also supporting the sector’s growth. Progress has been recorded on the Lagos-Calabar Coastal Highway, while work continues on the Lagos Green Line Rail Project and the Sokoto-Badagry Superhighway, improving connectivity to key areas. Additionally, the state government has launched the €410m Omi Eko Project to expand water transport and ease road congestion.
Edala Development’s CEO, Temidayo Oloyede, noted that although the market continues to expand, increased supply has made it harder for properties to sustain high occupancy levels.
He added that Lagos has grown into a global lifestyle destination, hosting over 200 major events during the festive season and attracting more than 1.2 million tourists, many of whom prefer premium short-term accommodation.
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