Lagos, Nigeria – The Lagos shortlet market generated an estimated N281.03 billion ($187 million USD) in revenue in 2025. The figure reflects sustained activity in the city’s short-term rental sector, according to a report by Edala Development released in March.
Okay News reports that revenue came slightly below the N300 billion projection forecast in 2024. This highlights a maturing market where strong demand persists amid rising competition and expanding supply.
The revenue estimates were based on research analyzing 6,398 listed units across Lagos. The market generated N264.3 billion in 2024, showing continued growth despite falling short of projections.
Temidayo Oloyede, co-founder and CEO of Edala Development, said the market is transitioning from rapid expansion to heightened competition among operators. The shortfall reflects a maturing market where rapid increases in supply make it more difficult for every property to maintain high occupancy levels.
While revenue growth continues, market performance is increasingly tied to professional management, operational standards, and regulatory compliance.
Lagos’ shortlet sector has grown rapidly over the past five years. Drivers include corporate travellers, tourists, digital nomads, and investors seeking high-yield real estate opportunities.
Early activity concentrated in Victoria Island, Lekki, and Ikoyi. The market has expanded to mainland areas such as Yaba and Surulere, where affordability and proximity to Lagos’ tech ecosystem attract tenants.
High occupancy and revenue growth characterized initial years. However, the surge in new listings has increased competition. Operators now invest in structured branding, professional management, and consistent hospitality standards.
Yaba recorded the strongest growth in 2025, with a 25% increase in demand fueled by the tech ecosystem. Studio apartments now make up half of Yaba’s total inventory. Peak periods such as “Detty December” drive near-full occupancy in prime Island locations.
The rise of “Branded Residences” shows multi-location chains with professional management increasingly replacing individual listings. Shortlet properties allow faster cost recovery, lower maintenance challenges, and greater flexibility for owners compared with traditional residential leases.
A two-bedroom unit in Yaba rents for about N3 million annually as a residence but can earn roughly N19.7 million yearly as a shortlet, based on an average daily rate of N100,000 and strong occupancy.
 in revenue in 2025. The figure reflects sustained activity in the city's short-term rental sector, according to a report by Edala Development released in March.){kind=link}