Lagos’ real estate market is showing resilience despite economic headwinds and weaker consumer spending, according to Knight Frank Nigeria’s Lagos Market Update for the first half of 2025.
Smaller, neighbourhood-focused retail centres and suburban housing are emerging as the key drivers of stability, gaining momentum over large malls and central urban residences.
The report noted that nimble local operators such as Bokku Mart, Addide, and Primemart are rapidly expanding to serve community needs where larger chains have slowed their presence. Bokku Mart, which launched in September 2022, now runs close to 150 outlets across Lagos.
Within the office sector, Grade A property occupancy increased from 65 to 73 per cent, indicating stronger absorption. However, rents in Ikoyi’s Grade A offices declined by 3.5 per cent year-on-year, falling from $57 to $55 per square metre per month, underlining a market increasingly shaped by tenant power.
“These macroeconomic shifts are directly influencing real estate dynamics across residential, retail, office, industrial, and infrastructure markets in Lagos,” said Frank Okosun, Senior Partner and Chief Executive of Knight Frank Nigeria.
Interest in suburban housing is growing steadily, supported by Lagos State’s use of public-private partnerships to close the housing gap, particularly along the Ikoyi–Ibeju and Ibeju-Lekki corridors. Rising rents in urban centres, coupled with tenant defaults, are pushing households toward more affordable alternatives in areas such as Ikorodu and Ibeju-Lekki.
Lanre Sonubi, Head of Marketing and Corporate Communications at Knight Frank Nigeria, noted that occupiers are finding advantages in the current conditions. “While office occupancies are rising, rents are softening, creating opportunities for tenants. These insights are vital for investors, occupiers, and policymakers who must anticipate change and make informed decisions,” he said.
Daniel Fabi, Lead Research Analyst at Knight Frank Nigeria, added that oversupply continues to weigh on the office segment. “Many landlords are repurposing vacant office buildings for residential, retail, or hospitality uses. Mixed-use projects are increasingly favoured, reflecting tenants’ demand for integrated work-life environments,” he explained.