Real Estate in Lagos: Key Trends and What to Expect in 2025

2024 has undoubtedly been a challenging year for many businesses in Nigeria. Record-high inflation and unstable currencies have disrupted most sectors of the economy, bringing many commercial activities to a standstill 

The real estate sector is not left out.  From the high cost of construction materials to poor infrastructure, the industry had a fair share of Nigeria’s economic woes 

Despite all these challenges,  the Lagos real estate market, for instance, has demonstrated remarkable growth in the real estate sector in 2024.

Experts have further predicted a significant growth in 2025. 

Lagos in View

Lagos, the commercial capital of West Africa and an estimated population of 16 million is a thriving real estate hub in Nigeria.   

In this post, we will share the forecasts and trends likely to rock the  Lagos real estate market in  2025. 

What are the trends and forecasts for Lagos real estate in 2025? 

  1. The prices of real estate are expected to soar in 2025

Property prices in Lagos are expected to surge in 2025 due to high demand as a result of demands to exploding population and urbanization, rising inflation,  the high profitability of the Lagos real estate market, and a significant housing deficit. 

This price hike will be most noticeable in rapidly developing areas like Ibeju Lekki, Ajah, and Epe, as well as prime locations such as Victoria Island, Ikoyi, Lekki, and Banana Island.

2. Increase in demand for luxury real estate properties 

Places like Victoria Island, Eko Atlantic City,  Banana Island, Ikoyi, and Lekki are renowned for luxury real estate properties. For many years now,  these high-brow locations have attracted high-net-worth individuals, expatriates, multinational companies, and wealthy real estate investors. 

It is a fact that buyers are so willing to pay a premium for properties in these locations due to the high prestige, huge ROI, and excellent infrastructure associated with them. 

This trend is projected to persist in 2025 in these locations amidst soaring property prices. Major developments, such as the recently launched Ibom Tower in Victoria Island, are also expected to further drive luxury real estate growth in Lagos. 

Check out: Everything You Should Know about Ibom Towers: Catch all the details and more

 

3. More use of PropTech and Smart Technology

In 2024, PropTech , real estate search engine platforms like www.thinkmint.ng/buyrealestate.and innovations like virtual home tours and smart home features are already gaining ground. This trend is expected to grow even stronger in 2025, as buyers increasingly seek properties equipped with smart features such as advanced security systems, automated lighting, and temperature control.

These features mostly appeal to high-quality buyers, and real estate developers are beginning to recognize their value in attracting premium buyers. 

Also, Artificial Intelligence (AI) is set to revolutionize operations by improving property search algorithms and automating customer service interactions. These advancements will deliver more personalized and efficient services to clients.

4. Short-let apartments will be on the rise

In  2024, the short-let apartment system, also known as short-term rentals,  received wide popularity and gained fast momentum. According to experts, this change is attributed to the fact that many people are beginning to prefer short-let apartments to hotels. 

Also, the rise of tourism, business travel, and remote work also contribute to the peak polpularity of short-let apartments in Lagos. 

Furthermore, there has been a massive increase in ads and awareness of short-let apartments across social media platforms. By the end of 2025, the patronage of short-let apartments is expected to surpass the figures recorded in 2024

All these are pointers to one fact: Many developers or investors of short-let apartments are certain to maximize profits in 2025, leveraging high demand and short stays. 

 

Read. Why Having A Short Let Apartment In Lagos Is the Best Investment

 

5. Infrastructure developments on the move

 

The federal government of Nigeria launched the 700KM Lagos Calabar coastal highway project this year with the first phase set to be completed in May 2025. This development is poised to boost not only Lagos real estate but other states. 

The 4th Mainland Bridge, which is set to be completed in two years, will also shape the development of the teeming Lagos real estate market. 

Conclusion

 

As we move into 2025,  Lagos real estate sector is expected to keep growing, driven by population growth, urban migration, and advances in technology and policies. 

This progress points to a more dynamic and competitive market focused on sustainability, innovative construction, and affordable housing.

The future envisions green building practices becoming standard, meeting the needs of a population that values environmental care alongside comfort and convenience. Technologies like Artificial Intelligence, Blockchain, and the Internet of Things are set to transform property management, sales, and development, making processes more efficient and transparent.

 

In 2025, Thinkmint Nigeria remains committed to keeping you informed with real estate updates, expert home-buying guides, and the best property deals in Lagos and across Nigeria.  You can always check out our current properties by following this link

 

 

 

 

 

 

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