Emmanuel OchayiThe real estate market in Lagos is attracting investors looking for high returns in 2025. With an increasing population and a growing middle class, rental properties remain a profitable investment. While island locations like Lekki continue to be prime destinations, some mainland areas such as Okota, Agboju, and Ojo are emerging as strong competitors in the rental market.
Experts say Lagos remains a top choice for real estate investment due to its rapid urbanization and economic activities. According to a developer who chose to remain anonymous, “Over 15 percent of people looking for houses to rent flock to Lekki, and about 52.7 percent of them are looking for small-size apartments, mostly two-bedroom. This is what the market says, and we are already responding to that.”
Join our WhatsApp ChannelLekki: A Prime Location For Rental Properties
Lekki has become one of the most attractive locations for rental properties in Lagos. The demand for apartments is significantly higher in Lekki than in most other areas of the city. Many middle-class professionals working in Ikoyi and Victoria Island choose to live in Lekki due to its proximity to their workplaces and relatively lower rents.
Google Trends data from Nigeria Property Centre supports this trend, showing that in a ranking of house rental searches, Lekki dominates with 52.7 percent of the market share. In contrast, Ajah accounts for 7 percent, Ikeja for 4.5 percent, Ikoyi for 3.1 percent, and Victoria Island for 2.6 percent.
READ ALSO: List Of Easiest Countries To Get Work Visa
A real estate consultant explains the rising demand: “This location has a large concentration of middle-level managers in oil and gas, banks, and tech companies. Since rents in Ikoyi and Victoria Island are too high, Lekki offers them an affordable alternative.”
Okota: Rising Rental Market On The Mainland
Okota is seeing a steady influx of new residents, making it a strong location for rental properties. Many families are moving from expensive city-center areas like Surulere, Ilupeju, and Gbagada to more affordable options in Okota.
Real estate consultant Cornelius Ibeagwu highlights the investment potential: “The Lagos rental market has witnessed cautious movement from the city center to the suburbs. Okota has seen over a 40 percent increase in house rents across board. A two-bedroom apartment now goes for between N2 million and N2.5 million, while a three-bedroom is priced between N3 million and N3.5 million. Just a few years ago, the same apartments were priced significantly lower.”
Investors in rental properties in Okota are seeing strong returns, as most tenants are business owners who can afford the rising rents. Ibeagwu adds, “Though this is tough for renters, it provides an opportunity for investors, and the risk of default is minimal.”
Agboju: A Developing Rental Hub
Agboju, once a relatively quiet area, is now gaining popularity among renters. This growth is largely due to infrastructure developments, including the inter-modal transport system and a major transport interchange at Mile 2.
Ezekiel Osho, a resident, explains why rental properties in Agboju are in high demand: “This area will soon explode because of the transport projects happening around here. Land costs have already gone up, and demand has increased significantly. People are buying land to build both residential and commercial properties.”
With more people moving into Agboju, rental property investors stand to benefit from rising demand and increasing rental prices in the coming years.
Ojo: A Commercial Rental Market
Ojo is another area experiencing high demand for rental properties. The presence of two major markets—Trade Fair (ASPAMDA) and Alaba International—has driven rental demand in the area. Additionally, tertiary institutions in Ojo, which are largely non-residential, contribute to the strong demand for rental housing.
Fatoki Jaiyeola, a Lagos resident, shares his experience: “Almost all new houses here are built as two-bedroom apartments because that size is in high demand. Landlords are charging above N1 million per year for each apartment. Some who are still paying N1 million have already received notices of rent increases for 2025.”
Jaiyeola also notes that rising rental costs in Festac and Okota are pushing tenants towards Ojo. “Many of them are traders in Alaba or Trade Fair, so it pays to live closer to their business area. That’s why demand for houses is far more than supply.”
A Strong Future For Rental Properties In Lagos
With Lagos experiencing rapid urban expansion, the demand for rental properties is set to rise in 2025. Investors looking for strong returns should consider Lekki, Okota, Agboju, and Ojo. Each location offers unique advantages, from Lekki’s proximity to commercial hubs to Ojo’s vibrant marketplace. As rental prices increase and demand continues to outpace supply, investing in rental properties remains a profitable option for those seeking steady returns.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
