Lagos Land Crisis: $1m Buys Just 507sqm as City Ranks Africa’s Second-Most Expensive

Lagos has emerged as Africa’s second-most expensive major city for prime residential land, with $1 million now enough to buy only about 507 square metres, a new property market analysis has revealed.

The latest ranking by Estate Intel places Lagos behind Cape Town, where the same $1 million buys just 329 square metres of prime residential land.

Casablanca, Morocco, ranked third, with $1 million purchasing approximately 633 square metres.

The findings were based on a comparison of the amount of prime residential land that could be acquired with $1 million across 11 major African cities.

The report said the figures reflect prevailing prices in selected prime residential locations and should not be interpreted as the standard price or plot size across each city.

Lagos Outpaces Major African Cities

The cost of prime land in Lagos is significantly higher than in several other major African property markets.

Johannesburg emerged as the most affordable city in the survey, with $1 million buying approximately 4,537 square metres.

Nairobi followed with 3,124 square metres, while Kampala recorded 1,923 square metres.

In Nigeria, Abuja ranked fourth overall, with $1 million buying about 1,298 square metres.

Accra recorded 1,183 square metres, Dar es Salaam 1,019 square metres, Abidjan 713 square metres and Cairo 676 square metres.

According to Estate Intel, Cape Town, Lagos and Casablanca currently command the highest prices for prime residential land among the cities assessed.

What Is Driving Lagos Land Prices?

The report linked Lagos’ expensive land market to a combination of limited supply, strong demand and the concentration of development in premium locations.

Areas such as Ikoyi, Victoria Island and Lekki Phase 1 remain highly sought after by developers targeting the luxury residential market.

With relatively limited land available in locations with better infrastructure, developers are competing for fewer prime sites, pushing prices higher.

Estate Intel also noted that strong property sales, occupancy levels and developer profit margins have continued to encourage investment in prime locations.

Average prime land prices in Lagos have now crossed $1,900 per square metre, further underscoring the premium attached to the city’s high-end property market.

Lekki, Ikoyi, Victoria Island See Huge Appreciation

Separate figures from the Lagos Island Residential Market Report 2026 by Lagos Realty show how sharply land prices have risen in some of the city’s most sought-after areas.

The report put average land prices at:

– Ikoyi – N2.5 million per square metre

– Victoria Island – N2.1 million per square metre

– Lekki Phase 1 – N1.5 million per square metre

– Ikate – N955,000 per square metre

The appreciation since 2022 has been particularly striking.

Land prices in Lekki Phase 1 rose by 256.53 per cent, while Victoria Island recorded a 197.87 per cent increase.

Ikate appreciated by 148.05 per cent, while Ikoyi recorded an 81.48 per cent increase.

The growth has been attributed to rising demand, shrinking land availability and increased acquisition by property developers.

Luxury Boom, Affordability Crisis

While investors and developers continue to benefit from rising property values, the boom is deepening the housing affordability challenge in Lagos.

Estate Intel noted that much of the new housing supply is concentrated in luxury and deluxe developments, leaving many average-income households unable to afford homes in locations with good infrastructure.

Limited access to affordable mortgages and high interest rates have further worsened the situation, making long-term home financing increasingly expensive.

Residents Still Pay for Basic Services

The soaring cost of property has also raised concerns about the quality of infrastructure available in some of Lagos’ most expensive neighbourhoods.

The State of Lagos Housing Market Report 2025 Vol. 3 identified unreliable water supply, power outages, inadequate drainage and poor waste management among the challenges facing residents in areas including Banana Island, Ikoyi, Lekki Phase 1 and Victoria Island.

Many residents consequently depend on private boreholes, water tankers and diesel generators to provide services that would ordinarily be expected from public infrastructure.

The report described the situation as a “premium for dysfunction” where residents pay premium prices for homes but must spend even more to compensate for inadequate public services.

As land prices continue to climb, the Lagos property market faces a growing question: how long can luxury property values continue rising while household incomes and public infrastructure struggle to keep pace?