Banana Island Land Prices Skyrocket, Luxury Property Market Booms.
Land prices in Banana Island have surged dramatically over the past five years, climbing by over 540% to reach around N3.05 million per square metre in 2025, according to the Lagos Residential Market Report 2025 by Edala Development. The report points to the area’s limited land availability and high demand for premium residential plots as major drivers of this growth.
Between 2020 and 2025, the average cost of land in Banana Island jumped from N470,000 to N3.05 million per square metre. The report emphasizes that the market for luxury homes—particularly ultra-luxury villas and detached houses often priced in US dollars—remains exceptionally strong.
Rising Rental Values
The rental market has also seen substantial gains. Three-bedroom apartments that rented for N11 million in 2020 are now fetching N27.5 million, while four-bedroom homes rose from N18 million to N30.5 million. Even two-bedroom units more than doubled in rental value over the same period.
Sales Market Growth
Property sales mirrored the rental trends. A four-bedroom home, which sold for N350 million in 2020, is now valued at around N800 million. Three-bedroom houses climbed to approximately N600 million, and two-bedroom apartments reached roughly N385 million by 2025.
Expansion Across Lagos’ High-End Areas
The report also highlights strong growth in other prime areas. In Ikoyi, one-bedroom apartments rose from N2 million to N8 million, and four-bedroom homes went from N8.5 million to N28.5 million. Victoria Island saw four-bedroom rentals jump from N5.4 million to N20 million, and three-bedroom units rose by more than 212% to N15 million. Lekki Phase 1 similarly recorded notable gains, with four-bedroom properties increasing from N4.3 million to N13.5 million.
Sales Markets Show Impressive Appreciation
The upward trend extends to property sales. In Ikoyi, one-bedroom apartments increased from N80 million to N170 million, while four-bedroom homes went from N300 million to N750 million. Victoria Island properties also saw strong growth, with four-bedroom homes rising from N225 million to N750 million. Lekki Phase 1 posted substantial gains, with two-bedroom apartments climbing from N70.5 million to N247.5 million and three-bedroom homes from N102 million to N315.3 million.
Land Values Surge Across Prime Areas
Land prices across Ikoyi, Victoria Island, and Lekki Phase 1 have also seen dramatic increases. In Ikoyi, the average per square metre went from N420,000 to N2.15 million, Victoria Island rose from N350,000 to N1.55 million, and Lekki Phase 1 increased from N264,000 to N1.1 million per square metre—a 316% rise. These trends reflect strong demand, limited supply, and the strategic appeal of these locations.
Luxury market avenue
Earlier data from Estate Intel highlighted Lagos’ broader luxury property growth. Eko Atlantic led with a 59.5% sales growth, followed by Ikoyi at 58.14%, and Banana Island at 55.3%, driven by its waterfront and high-end residences. Victoria Island recorded a 45.04% increase, reflecting stable demand for its mixed-use properties. Overall, these areas achieved annualized gains of 38%–60%, demonstrating the resilience and attractiveness of Lagos’ luxury real estate market.
