Welcome to the third edition of the annual Lagos Real Estate Development Pipeline Report!

In the face of Nigeria’s economic challenges underpinned by record-high inflation, and a weakening currency, understanding the Lagos real estate market has become more crucial than ever.

Despite a subdued pipeline amidst a difficult operating environment, certain sectors have stayed resilient.
For instance, Data Centres continue to register the highest level of interest from investors, driven by surging demand for digital infrastructure across the continent with supply expected to reach 200MW by 2025.

Notably, the hospitality sector has remained the best-performing sector despite claims of a future oversupply with 2023’s average daily rate 35% higher than 2022 underpinned by increased demand amidst the current low supply. In addition, the residential sector’s low to middle segment continues to register high demand for affordable housing.

On the other hand, the office sector remains tenant-led amid concessions due to the drastic currency devaluation and a looming supply glut in the prime market segment. In general, vacancy rates have increased as economic headwinds have led companies to downsize their operations or exit the market altogether.