Over the years, Ikoyi has remained a prime region for residential real estate in Lagos and is positioned as a relevant hub for quality office space within the city. Multinationals and large indigenous firms have taken space in this affluent neighborhood, which has now become the preferred head office location. Since 2015, the office market in Lagos, particularly Ikoyi, has seen some supply shocks. In Q4 2014 for instance, Ikoyi had a little over 22,000 sqm of formal office space but as of today, Estate Intel tracks up to 120,000 sqm of completed office stock in the area. In 2016 alone, supply additions were a record 15% of total stock. This did not help because 15% of new additions are well above the recommended 5-10% YoY supply addition, and therefore drove a negative market narrative for the market. The shallow tenant pool since 2014, and the 2015 election which slowed down the market, including the recession that subsequently happened in 2016 also cumulatively accelerated a declining narrative for the office market.

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