Unlock Strong Rental Yields: Top Nigerian Investment Corridors for 2026

One of the major trends that will play out in the Nigerian real estate investment market in 2026 is the expected strong rental yield and steady appreciation in mid-to-upper segments of the market. The yields and appreciation, which will happen in growth corridors of major cities like Lagos, Abuja, and Port Harcourt, are expected to hit 8-18 percent per annum. In Lagos, for instance, the growth corridors that hold promise for this rental yield and steady appreciation are Lekki Phase 1, Ajah and Sangotedo, while areas like Ibeju-Lekki, Epe and Ikorodu promise high long-term capital appreciation driven by industrial and infrastructure projects, and land banking. Investors here expect to get as much as 10-35 percent return on their investment. In highbrow locations of the city like Ikoyi, Banana Island, and Victoria Island (VI), which harbour the luxury segments of the market, a moderate but stable capital appreciation of 5-10 percent is expected. The high expectations by investors and developers in this sector in the new year derive from the growth the sector recorded in 2025, driven by strong demand coming from an ever-increasing number of immigrants who need accommodation. “In 2026, investors and developers in the Lagos property market expect continued strong demand, particularly in infrastructure-backed growth corridors, and a flight to quality assets that offer transparency, professional management, and smart/sustainable features,” an analyst confirmed. According to the analyst, who did not want to be named, the property market in Lagos is driven by a massive housing deficit and high urbanisation. The housing deficit in this city is estimated at three million units In the new year, investors are focused on both capital appreciation and rental yields, adapting strategies to a market with persistent macroeconomic challenges like inflation and high construction costs. The sector will record infrastructure-led growth, in which case properties in areas near major government and private infrastructure projects, such as the Lekki Deep Sea Port, Free Trade Zones, new expressways, and rail links, will deliver the highest return,s projected to see 18-35 percent faster appreciation. Because affordability issues in home ownership is expected to continue in the new year, demand for rental properties is projected to surge, offering strong yields, especially in mid-market areas and locations popular with expatriates and tech professionals. Read also: 2026: More homes coming as Lagos doubles down on tackling housing deficit High-net-worth individuals (HNIs) and diaspora investors view luxury properties in established areas like Ikoyi, Victoria Island, and Banana Island as a stable hedge against economic volatility and a means of wealth preservation. Therefore, there will be demand for ‘Blue-Chip’ Assets for Wealth Preservation. Investors in this segment of the market have reasons to move cash to the market. Discerning investors, who demand documented titles, always go for professionalism and transparency. The need for transparent transactions, escrow-backed off-plan purchases, and a proven track record from developers to mitigate risks like land fraud. The analyst says that investors can also move cash to the commercial and industrial real estate market because, as he put it, beyond residential, there’s growing interest in logistics hubs, warehousing, small-format retail clusters, and flexible office spaces driven by e-commerce growth and changing work models. On the part of developers, they are targeting growth corridors and it is such that construction activity is moving towards emerging suburbs like Epe, Ibeju-Lekki, Ikorodu, and Sangotedo, where land is more available and appreciation potential is high due to ongoing infrastructure projects. They are also adopting PropTech in the belief that technology adoption, such as digital land titling, GIS mapping, and online management platforms, will become standard to enhance efficiency and build investor confidence. And to attract institutional and foreign funding, they are also embracing structured operations and shifting towards more structured real estate companies. Among the buyers, there is a shift of focus towards amenities and quality, meaning that the era of selling empty plots is over. Developers are therefore building purpose-built communities and integrated mixed-use developments that offer amenities such as security systems like AI-powered, facial recognition; sustainable features, including solar power, energy efficiency, water recycling, and lifestyle facilities such as gyms, parks, swimming pools, among others