Lagos’ short-let market recorded an estimated N281.03 billion in revenue in 2025, maintaining stability despite high inflation and growing competition, according to the Lagos Shortlet Market Report 2025 by Edala Development.
The report notes that while the sector’s phase of rapid, unregulated growth is coming to an end, it continues to be a key driver of the city’s real estate economy, with revenues projected to reach N285.5 billion in 2026.
Population growth and Lagos’ economic scale underpin strong demand. With nearly 27 million residents, the city remains Africa’s largest commercial hub, attracting both domestic and international investors.
Lekki emerged as the top revenue generator, with Phase I and Phase II contributing nearly N165 billion in 2025, followed by Victoria Island, which saw revenue almost double to N34.8 billion. Meanwhile, Banana Island’s revenue sharply declined to N9 billion due to regulatory suspensions, with projections for 2026 showing a further drop to N1.5 billion following a full suspension of short-let activities in February.
“The Lagos short-let market is shifting from opportunistic growth to a professional, compliance-driven industry,” the report stated. Success in this new phase depends on strategic investment, professional management, and adherence to stricter estate regulations.
Mainland areas such as Ikeja, Yaba, and Gbagada are emerging as growth frontiers, with steady revenue gains offering opportunities outside the saturated island markets. Surulere, however, saw revenue decline to N6.15 billion, reflecting market adjustments amid regulatory changes.
Infrastructure development continues to support the sector. The Lagos-Calabar Coastal Highway advanced in 2025, with 47 kilometres completed and temporarily opened. Planning has also begun for the Lagos Green Line Rail Project connecting Marina to Lekki, while construction continues on the Sokoto-Badagry Superhighway to improve access to the Agbara industrial corridor. Additionally, the Lagos State Government launched the €410 million Omi Eko Project to expand inland waterway transportation.
Temidayo Oloyede, Co-Founder and CEO of Edala Development, said, “The sector has grown rapidly due to rising demand from corporate travellers, tourists, digital nomads, and investors seeking high-yield properties. Our 2024 outlook projected N300 billion in revenue for 2025, but the market closed at N281.03 billion, reflecting a maturing market with strong demand but a growing supply affecting occupancy levels.”
Beyond business travel, Lagos has become a global leisure and lifestyle destination, hosting over 200 international events during the festive season and attracting more than 1.2 million tourists—many of whom seek premium short-term residences near the city’s vibrant nightlife.
