Lagos luxury properties triple in value on strong demand, devaluation

Property prices in Lagos, Nigeria’s commercial capital, have surged over the past year, with a portfolio of 10 investment properties more than tripling in value to N25.6 billion, up from N9.3 billion in December 2024, according to data gathered by BusinessDay.

The sharpest gains were concentrated in Ikoyi, the country’s most prestigious neighbourhood, where properties experienced appreciation ranging from 132 percent to 176 percent. The value appreciation has been attributed to strong demand and devaluation of the local currency, which gave greater advantage to buyers with stronger currencies.

Though new highbrow neighbourhoods are springing up in Lagos, especially within the new urban communities in the state, Ikoyi remains a destination of choice for both residential and commercial purposes. This presents the area as an irresistible destination for yield-hungry investors.

“Ikoyi will continue to attract strong demand and command high values because it is the first port of call for luxury real estate. It is only Eko Atlantic City that compares with that highbrow neighbourhood,” David Mbah, CEO, MDS Properties, confirmed to BusinessDay.

Ikoyi is largely built up, which is why much of the new investments in the neighbourhood are in existing structures, which are pulled down and replaced with bigger and modern high-rise residential buildings that attract premium prices, either for rent or for sale, making such investments highly profitable.

“Generally, properties in Ikoyi, whether they are parcels of land or developed structures, with right pricing, have become hot cakes and people are snapping them up per minute, per minute,” Mbah noted.

It is on the strength of this that a prime parcel at Sapara Williams saw its value jump to N4.02 billion, up from N1.73 billion, while a Macdonald Road property surged to N3.15 billion from N1.14 billion, representing gains of 132 percent and 176 percent, respectively.

Similarly, a Sinari Daranijo property, valued at N6.93 billion, posted a 157 percent increase from N2.69 billion a year earlier, making it the most valuable asset in the portfolio surveyed by BusinessDay. Meanwhile, a Rumens location appreciated 196 percent to N5.05 billion.

Abuja properties also showed strong performance, though more modest than Lagos. A Mike Akhigbe property reached N1.8 billion from N418,421, while an Ago Dutse location climbed to N600,000 from N248,720.

The only new addition to the portfolio was a Parkview property in Ikoyi, valued at N5.05 billion, reflecting the premium attached to prime locations even for recent acquisitions.

Chudi Ubosi, principal partner at Ubosi Eleh & Co, a firm of estate surveyors and valuers, also confirmed to BusinessDay that property prices have actually moved significantly.

He corroborated the price increases in Ikoyi with a property on Cooper Road which, according to him, was going for N800,000 per square metre (sqm) in January 2024, but today it is priced at N3.5 million per sqm.

“These price increases are also a function of inflation and devaluation of the Naira. As a matter of convention, property values move with inflation even though it is said that real estate is a hedge against inflation. The price increases are the same all over Lagos,” he stated.

In the mainland Lagos, Ikeja GRA for instance, prices have also moved, and according to Ubosi, land in the GRA now sells for N1.5 million/sqm, up from N600,000/sqm in January 2024, while a 3-bedroom flat in the same location now rents for N15 million per annum, up from N5million per annum.

“Rent is even worse,” he said, pointing out that “in Banana Island, an average duplex now rents for between N80 million and N100 million per annum.” He urged the government to stop the pressure on the city centre by opening up the hinterlands with more coastal roads, rails, and waterways that will take more people away from the city centre.

Charles Ihedigbo, former managing director of Fine and Country, also confirmed to BusinessDay recently that prices in Ikoyi have more than tripled, explaining that “Ikoyi is not growing anymore. It has limited land space, and therefore it is in high demand.”

According to him, a property that was going for N1.5 million/sqm in 2024 now goes for N3.5 million /sqm. “Land commands more value than built property because land is like a clean board on which you can write anything,” he said.

Lagos remains Africa’s largest city by population, with over 20 million residents, and continues to attract domestic and international investment despite infrastructure challenges.