Lagos Property Market Poised for New Investor Opportunities in 2026

As Lagos and the world step into the new year, the city’s property market is poised to benefit from a combination of population growth, rapid urbanisation, technological advancement, and increased diaspora investment, according to a new report. The various segments of the market, including residential, commercial, industrial, and luxury, are projected to continue evolving in 2026, creating new opportunities for investors, developers, and home seekers. While investors and developers have new vistas and investible asset classes to tap from, home seekers will be treated with new products in new locations that are likely to lessen the affordability issues that define the city’s property market. The expected opportunities are to be driven by a number of trends that, the report hopes, will define the real estate market, including expansion towards new districts, the rise of smart and tech-enabled housing, sustainability, and demand for gated communities and lifestyle estates. Read also: Strong rental yields await investors at growth corridors in cities The report, which was compiled by Estate Intel, an online real estate research platform, explains that as central Lagos becomes more saturated, developers are turning to emerging areas such as Epe, Ibeju-Lekki, Badagry, Ikorodu, and Sangotedo. “These regions offer cheaper land, government-backed infrastructure development, and high potential for long-term appreciation. The ongoing construction of the Lekki Deep Sea Port, airports, industrial zones, and coastal roads is expected to drive major investments,” Dolapo Omidire, founder/CEO, Estate Intel, said. This corroborates an earlier projection by Davies Okonjo, a property market analyst, who told BusinessDay in an interview that investors and developers in the Lagos property market expect continued strong demand in the new year, particularly in infrastructure-backed growth corridors. “We also expect to see a flight to quality assets that offer transparency, professional management, and smart/sustainable features. The market is driven by a massive housing deficit and high urbanisation,” he said. He added that investors will focus on both capital appreciation and rental yields, adapting strategies to a market with persistent macroeconomic challenges like inflation and high construction costs. Read also: Developer explains why diaspora investors are losing confidence in Nigeria The Estate Intel report notes that young professionals and Nigerians in diaspora increasingly prefer homes with smart features, including automated lighting, digital security, energy-efficient appliances, fibre internet, and sustainable building materials. Though some developers are also responding by integrating smart technology into new estates across Lekki, Ajah, and Oniru, this new trend offers opportunities for many more investors who have all it takes to invest in it now. Omidire pointed out that opportunity also awaits investors and developers who adopt sustainability which, he said, is redefining the Lagos real estate market. “Developers now adopt green building practices, solar energy, water recycling systems, and eco-friendly materials to meet global environmental standards.” He said with frequent power shortages and rising electricity costs, solar-powered homes and hybrid energy solutions are becoming highly attractive. Due to rising security concerns, traffic, and the desire for modern community living which drive affluent buyers toward estates that offer gyms, parks, swimming pools, lounges, and day-care centres, it is expected that demand for gated communities and lifestyle estates will continue to rise. These estates are particularly popular among first-time buyers and diasporan families returning to Lagos because they offer security and comfort. Read also: 2026: More homes coming as Lagos doubles down on tackling housing deficit For a number reasons including low investment, increased migration into Lagos, and conversion of available residential houses to other uses, chiefly short-let apartments, the Lagos rental market will continue to be active with demand for outstripping supply. “Young workers prefer co-living spaces, serviced apartments, and short-let units for flexibility and affordability. Short-let apartments remain a strong trend, especially in Lekki, Oniru, Victoria Island, and Ikoyi, driven by tourism, business travel, and influencer culture,” the report says. On the commercial side, Lagos is experiencing a shift toward hybrid workspaces. Remote and hybrid work models have increased demand for co-working hubs and flexible office spaces. Companies prefer cost-effective, shared environments instead of traditional long-term rentals.