Stabilising macroeconomic conditions, rising office occupancies, and infrastructure-driven opportunities, have spotlighted the resilience of the Lagos’ real estate sector in the first half of the year, according to a Report by Knight Frank Nigeria.
According to the H1 2025 Lagos Market Update, the residential sector is adjusting to changing demand patterns, with tenants exploring suburban areas such as Ikorodu and Ibeju-Lekki, while short-let apartments and studio housing continue to grow in popularity.
The report also indicated the fast-expanding digital economy as one of the defining features of the market in the first half of the year.
Frank Okosun, Senior Partner/CEO, Knight Frank Nigeria, said that the Lagos property market is a mirror of Nigeria’s economic realities.
“In the first half of 2025, we witnessed significant reforms that stabilised the naira, a notable drop in inflation, and a renewed push for infrastructure development,” Okosun said during Monday’s media briefing.
According to him, the shifts are directly shaping the dynamics of real estate across Lagos.
Lanre Sonubi, Head, Marketing and Corporate Communications, Knight Frank Nigeria, said the insights are essential for investors, occupiers, and policymakers who must anticipate change and make informed decisions
“This report is not just a presentation of figures, it decodes the implications of market shifts. For instance, while office occupancies are rising, rents are softening, creating opportunities for tenants,” Sonubi said.
The Report also highlighted the rapid growth of digital infrastructure, with Lagos now hosting 18 data centres and more under construction.
BusinessDay reports that Rack Centre inaugurated a new 12MW facility in April, while Open Access Data Centres announced a US$240 million expansion that would double its capacity to 24MW by 2027, further positioning Lagos as a hub for Africa’s digital economy.
Daniel Fabi, Lead Research Analyst, Knight Frank Nigeria, said occupancy in Grade A spaces across Lagos rose from 65% to 73%, even though prime rents in Ikoyi softened slightly to US$55 per square metre.
“Eko Atlantic City is consolidating its status as a new business hub, with MTN Nigeria and First Bank relocating their headquarters there”, Fabi said.
