Lekki Phase I Tops Lagos Short-Let Market with ₦93.78bn Revenue in 2025
Lekki Phase I has emerged as the highest-earning short-let destination in Lagos, generating an estimated ₦93.78 billion in revenue in 2025, according to a new industry report on the state’s fast-growing short-term rental sector.
The report, published by Edala Development, highlights the continued dominance of the upscale residential neighbourhood, which remains a preferred location for corporate travellers, tourists, and diaspora Nigerians seeking premium short-stay accommodation.
Despite a slight dip from the ₦94 billion recorded in 2024, Lekki Phase I maintained strong performance metrics, including an average occupancy rate of about 66 per cent and peak occupancy levels reaching approximately 85 per cent during the December holiday season.
The average daily rental rate in the area was estimated at ₦226,000, reflecting its premium positioning in the market. The report tracked more than 6,300 short-let listings across Lagos, with over 1,000 units concentrated in Lekki Phase I alone, underlining its central role in the city’s alternative accommodation ecosystem.
Across the wider Lagos market, the short-let sector generated a total of ₦281.03 billion in 2025, up from ₦264.3 billion in 2024, signalling sustained growth driven by increasing demand for flexible lodging options. Other key high-performing areas included Lekki Peninsula II with ₦72.02 billion, Ikoyi with ₦35.99 billion, Victoria Island at ₦34.81 billion, and Ikeja with ₦22.94 billion in revenue.
However, the report noted declining performance in some high-end and mid-tier districts, including Banana Island and Surulere, suggesting shifting demand patterns and intensifying competition among operators.
Industry analysts attribute the growth of the short-let market to higher returns compared to traditional long-term rentals, as well as increased travel activity and the rise of remote work, which has expanded the pool of short-term residents.
Emerging mainland locations such as Yaba and Gbagada are also gaining traction, offering more affordable options while benefiting from improving infrastructure and connectivity.
The report further noted that evolving regulations in some estates and residential communities are beginning to shape the sector, as authorities and property managers introduce restrictions on short-let operations.
