With a GDP exceeding $250 billion, Lagos remains Nigeria’s most attractive investment destination, contributing nearly 30% of the country’s total economic output while occupying less than 0.5% of its landmass. Its real estate market, long known for rapid appreciation, continues to draw investors seeking wealth-building opportunities.
According to Joan Obi-Okuhon, a business analyst and real estate advisor, Lagos has seen annual property price growth of 4–6%, with certain areas experiencing spikes of over 30% in a single year. Prime locations offer rental yields between 6–8%, fueled by a population of over 23 million people and a housing deficit exceeding 3.4 million units.
However, Obi-Okuhon warns that Lagos’ “golden era” of real estate speculation is gradually giving way to a more mature and stable market.
“Entry costs are rising, and returns are beginning to compress,” Obi-Okuhon notes. “Luxury real estate in Ikoyi and Victoria Island now averages 5–6% rental yield, meaning growth margins are slimmer than they were five or ten years ago.”
Beyond price pressures, macroeconomic factors—including high inflation, currency volatility, and projected GDP growth of around 3%—further constrain real returns. While investors may record profits in naira, adjustments for inflation and currency devaluation can significantly erode actual gains.
The city’s prime areas are reaching saturation, diminishing the first-mover advantage once enjoyed in zones like Lekki Phase 1 and Ikoyi. Emerging areas such as Ibeju-Lekki, Epe, and Badagry still offer potential, but speculative buying is already increasing land prices in these regions.
Despite these challenges, Obi-Okuhon emphasizes that Lagos remains a highly liquid market and the country’s hub for commerce, logistics, entertainment, finance, and tech. Migration trends and business growth ensure continued demand for housing and commercial properties.
She advises prospective investors to adapt their strategies:
- Focus on secure rental income rather than speculative capital gains
- Invest in areas with confirmed infrastructure commitments
- Calculate returns after adjusting for inflation and currency exposure
- Avoid expectations of 20% annual property appreciation
“Lagos will still make people wealthy,” Obi-Okuhon concludes, “but success in the current market requires strategy, patience, and realistic expectations. The era of quick, automatic profits is fading.”
Investors seeking guidance on Lagos real estate can reach out to Obi-Okuhon for personalized advice and market insights.
