Lagos’s Opulent Estates Rival International Pricing, Falter in Service, Says Report
A recent analysis has revealed that high-end districts in Lagos boast real estate prices comparable to those in global metropolises such as London, Dubai, and Johannesburg, yet persistently struggle with fundamental infrastructural and service inadequacies.
Despite the exorbitant cost of residences in locales like Banana Island, Ikoyi, Lekki Phase 1, and Victoria Island, inhabitants confront issues typically associated with impoverished communities, including erratic utilities and environmental strain.
This information is presented in The State of Lagos Housing Market Report 2025 Vol. 3, issued by the Roland Igbinoba Real Foundation for Housing and Urban Development (RIRFHUD).
“The Lagos luxury housing market unveils a striking contradiction where lofty prices do not invariably equate to corresponding public infrastructure and services.
“Despite commanding prices that rival those in elite global cities such as Dubai, London, or Johannesburg, affluent estates in Lagos, including Banana Island, Ikoyi, Lekki Phase 1, and Victoria Island, wrestle with significant infrastructural and environmental shortcomings typically linked to less privileged areas,” the statement partially reads.
Among the principal deficiencies underscored in these upscale estates are erratic water supply, recurrent power failures, inadequate drainage systems, and substandard waste management.
With public water infrastructure falling short of demand, most residents resort to private boreholes or water tankers. Similarly, the unstable electricity grid forces many households to depend on diesel generators, resulting in additional financial burdens and contributing to environmental degradation.
The report characterizes this scenario as a “premium for dysfunction” model, wherein buyers pay not merely for location and design but also for essential services such as water, power, security, and waste management, which are typically publicly financed in comparable global cities.
While marketed as exclusive, these neighborhoods remain detached from the broader urban infrastructure. Their exclusivity, the report notes, is predominantly defined by private security, gated access, and self-managed services rather than seamless public service delivery.
It further emphasizes that the widening chasm between luxury pricing and inadequate infrastructure continues to influence quality of life, with residents in high-end areas still exposed to pervasive systemic urban failures.
The report cautions that this disconnect may affect long-term demand and property values, as buyers increasingly assess the actual value provided beyond location and prestige. It advocates for coordinated governmental investment in public infrastructure, particularly in high-density, high-value zones, to foster sustainable growth in the luxury housing sector.
