Block of flats have emerged as probably the most generally used property sort for short-term leases in Lagos, whereas swimming swimming pools high the checklist of most popular facilities amongst company, in response to a brand new educational research.
The analysis, titled “Analysis of the Brief-Time period Rental Housing Market in Nigeria,” was carried out by Joseph Oyewale Oyedeji of Bells College of Know-how, alongside students from Hong Kong Polytechnic College and Chicago State College.
It affords one of many first complete analyses of the town’s fast-growing short-term rental market.
In response to the research, block of flats topped the checklist of property varieties used for short-term leases, with a relative significance index (RII) of 0.905, displaying that traders and managers overwhelmingly desire this format.
These flats additionally had the very best occupancy fee (RII: 0.914), confirming their reputation amongst company, doubtless resulting from affordability and ease of use.
Whereas completely different housing varieties — together with semi-detached homes, terraces, and bungalows — are used for short-stay lodging, none matched the efficiency or desire stage of block of flats. Bungalows, as an illustration, had been the least used, with decrease rental demand and occupancy charges.
On the facilities aspect, the report revealed that swimming swimming pools are probably the most enticing facility to renters, adopted by indoor video games and out of doors leisure areas like courtyards. Visitors had been reportedly prepared to pay a premium for these options, indicating that lifestyle-driven preferences play a key position available in the market.
“Block of flats is probably the most used sort of residential property for short-term leases within the research space. Additionally, block of flats has the very best occupancy fee amongst properties used for short-term rental housing within the research space,” the report learn partially.
It added, “Swimming pool is the power that the customers desire most in short-term rental housing.”
The research drew insights from 42 skilled property surveyors and valuers actively managing short-term rental properties throughout the Lagos Mainland and Island. Their responses offered helpful knowledge that allowed the researchers to look at tendencies in rental values, occupancy charges, investor motivations, and the general construction of the market.
Between 2018 and 2023, short-term rental costs in Lagos rose steadily throughout all property varieties. Indifferent and semi-detached homes noticed the sharpest will increase, whereas block of flats—regardless of being probably the most reasonably priced—recorded constant development resulting from excessive occupancy and availability.
As short-term leases proceed gaining traction—particularly amongst middle-income and leisure vacationers—the research requires a balanced method that helps development with out undermining housing accessibility.
In response to BuyLetLive’s 2024 Nigeria Property Worth Index Report, short-let condo costs in Lagos jumped by over 200% in 2024, marking the sharpest rise within the metropolis’s residential actual property market. This adopted a 12.95% improve in 2023 and a 46.4% surge earlier in 2024, pushed by inflation and rising development prices that pressured builders to lift costs.
Registering with native authorities and, in some circumstances, acquiring a SCUML certificates from the EFCC are widespread steps to function legally and open company accounts.
Each day rental charges range by measurement and space:
Hosts usually provide reductions for prolonged stays and cost a refundable warning charge—usually round N100,000—to cowl potential damages.
Visibility is vital in attracting company. Hosts use brokers, digital itemizing platforms like Airbnb, Reserving.com, PropertyPro, and Nigeria Property Centre, in addition to paid social media promotions by way of influencers—particularly on Instagram. Whereas some platforms cost a subscription, others take commissions per reserving. Optimistic visitor referrals and critiques are additionally important for repeat enterprise.
Visitors favour short-lets for privateness, area, and comfort. From household occasions and romantic getaways to discreet stays, many desire the home-like really feel of quick lets over motels. Entry to a kitchen, extra room for group stays, and suppleness are key causes for this rising demand.
