Lekki Phase I dominated Lagos’ shortlet market in 2025, earning ₦93.78 billion.
The Lagos Shortlet Market Report 2025 by Edala Development tracked 6,398 listings across the city.
Lekki Phase I Leads Revenue
Over 1,000 listings in Lekki Phase I generated this impressive revenue.
Revenue slightly fell from ₦94 billion in 2024, yet demand remained strong throughout the year.
Young professionals, entrepreneurs, and creatives flocked to the area for leisure, business, and social hubs.
Average occupancy reached 66%, climbing from 47% in January to 85% by December.
Daily rates averaged ₦226,000 across all property types in Lekki Phase I.
One-bedroom units made up 41% of inventory, while two-bedroom units accounted for 36%.
Single-night bookings formed 56% of stays, whereas two-night bookings represented 29%.
One-bedroom units earned ₦111,000 nightly, generating roughly ₦26.3 million annually.
Meanwhile, five-bedroom villas charged ₦377,000 per night, producing about ₦89.5 million yearly.
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Two-bedroom units’ rates rose sharply, from ₦140,000 in February to ₦196,000 in December.
Mixed Market Performances
Elsewhere, Lekki Peninsula II earned ₦72.02 billion, up from ₦70 billion in 2024.
Ikoyi recorded a decline, generating ₦35.99 billion compared with ₦37.5 billion previously.
Victoria Island surged, bringing in ₦34.81 billion, up from ₦19.3 billion in 2024.
Ikeja increased earnings to ₦22.94 billion from ₦18.6 billion the year before.
Conversely, Banana Island and Surulere dropped to ₦9 billion and ₦6.15 billion, respectively.
Smaller areas such as Yaba and Gbagada grew, posting ₦4.05 billion and ₦2.3 billion.
Growth Drivers And Trends
Overall, Lagos’ shortlet market earned ₦281.03 billion, rising from ₦264.3 billion in 2024.
Shortlets outpaced traditional rentals, driven by tourists, corporate travellers, and digital nomads.
Initially, activity focused on Victoria Island, Lekki, and Ikoyi, but demand is now spreading to mainland areas.
Yaba recorded the strongest growth, up 25%, due to tech hubs and expanding studio apartments.
Operators invested in professional management and branding to stay competitive amid rising listings.
Regulatory changes, including the February 2026 Banana Island ban, influenced investment decisions.
During peak periods like “Detty December”, prime locations achieve near-full occupancy.
Branded multi-location residences increasingly replaced standalone listings in high-demand areas.
Shortlets provide faster cost recovery, lower maintenance, and greater flexibility than long-term rentals.
For example, a two-bedroom unit in Yaba generates ₦3 million yearly on a long-term lease, but it can earn ₦19.7 million as a shortlet at ₦100,000 per night.
Lekki Phase I demonstrates that location, lifestyle, and professional management drive profitable shortlet investments.
