Knight Frank’s H1 2026 Lagos Market Update identifies a property market shaped by rising residential costs, infrastructure investment and increasingly selective occupier demand across Lagos, Abuja and Port Harcourt.
The report notes that Nigeria’s construction sector grew by 6.38% year-on-year in the first quarter of 2026, while real estate accounted for 13.10% of real GDP. Although headline inflation eased to 15.91% in June from 25.29% a year earlier, affordability and development costs remain important considerations for investors, landlords and occupiers.
In Lagos, residential rents continue to rise amid limited formal supply, particularly in prime locations including Ikoyi, Victoria Island, Banana Island and Lekki Phase 1. With some rents more than doubling since 2023, demand is also shifting towards more affordable studios, mini-flats and two-bedroom homes on the Mainland. Transport and road projects, including expansion of the rail network and improvements along the Lekki-Epe corridor, are reinforcing interest in growth areas such as Ajah, Sangotedo and Ibeju-Lekki.
Commercial property demand is more selective. Grade A office rents have stabilised at about US$55 per square metre monthly, with landlords increasingly offering fit-out contributions, concessions and flexible lease terms to attract tenants. In the industrial market, Grade A rents in Alaro City and Lagos Free Zone are reported at US$4 6.5 per square metre monthly.
Retail demand favours convenience-led formats and neighbourhood shopping, while the report also notes that changes to the effective tax regime for Free Trade Zones may influence investment decisions.
In Abuja, property values are rising in selected districts, with Guzape I and II recording reported increases of 20–30%.
Prime districts such as Maitama, Asokoro and Wuse 2 face saturation, encouraging regeneration and new supply. Diaspora investment remains an important driver, while affordability continues to be a concern. Commercial rents increased by more than 10% in the first half of the year, supported by demand for quality office space and flexible work environments.
Port Harcourt’s market remains supported by the oil and gas sector, which underpins demand for premium housing, offices, hospitality and industrial facilities. Residential demand is concentrated in established neighbourhoods such as Old GRA, GRA Phases 1–3 and Peter Odili Road, alongside mid-market locations including Rumuodara, Ada George and Eliozu. For offices, tenants increasingly prioritise reliable power, lifts, parking, security and professional facilities management, leaving older buildings under pressure to refurbish or compete on price.
Frank Okosun, Senior Partner and Chief Executive Officer of Knight Frank Nigeria, said: “The market is showing resilience, but performance is increasingly location- and asset-specific. Infrastructure can unlock new opportunities, yet investors and developers must also respond to affordability pressures, operating costs and clearly demonstrated demand.”
Daniel Fabi, Lead Research Analyst, said: “Across the three cities, occupiers are prioritising value and functionality. Quality offices and well-located industrial assets remain relevant, while residential demand is splitting between prime properties and more affordable options. Understanding these differences is essential to sound investment decisions.”
Lanre Sonubi, Head of Marketing and Corporate Communications, added: “The H1 2026 report provides market participants with a practical view of how infrastructure, changing occupier needs and affordability are shaping real estate opportunities. Our aim is to support clients with evidence-led insights as they assess risk, and position for growth across Nigeria’s key urban markets.”
Knight Frank Nigeria’s H1 2026 Lagos Market Update is available for download on the firm’s website, https://www.knightfrank.com.ng/.
