In Lagos, short-term rentals are evolving fast and a clear trend is taking shape. Block of flats have become the go-to option for both investors and guests, outpacing other residential types in use and popularity.
A new academic study examining the city’s rental market shows that these flats are not only the most preferred by property managers but also boast the highest occupancy rates, likely thanks to their affordability and convenience.
The study, conducted by researchers from Bells University of Technology in collaboration with Hong Kong Polytechnic and Chicago State University, draws insights from professionals managing properties across both the Mainland and Island.
Their feedback reveals a market leaning heavily toward compact, multi-unit flats as the dominant structure for short-term stays. Other property types such as terraces, bungalows, and semi-detached houses are still in use but don’t match the demand or performance of flats—bungalows, in particular, rank the lowest in rental use and occupancy.
What’s also shifting the game is lifestyle. Swimming pools have emerged as the top amenity driving guest decisions, with renters willingly paying a premium for properties offering this leisure feature. Indoor game options and outdoor chill zones like courtyards follow close behind. This signals a clear move toward experience-based renting, where comfort and recreation are just as important as the stay itself.
From 2018 to 2023, short-term rental prices steadily climbed across all property types in Lagos. While detached homes saw sharp price hikes, flats stood out for their steady growth, sustained by consistently high demand and widespread availability. The dominant investment strategy has been repurposing standard residential properties into rental units rather than building from scratch a move that speeds up supply but raises concerns about long-term housing availability.
Despite the market’s rapid expansion, it’s still flying under the radar. Not one of the surveyed properties is listed on major platforms like Airbnb, and the entire sector remains largely unregulated. The study suggests that this early-stage informality could become a risk if left unchecked, potentially leading to housing shortages and rising rents.
With rising interest from middle-income travelers and leisure seekers, short-term rentals in Lagos show no signs of slowing. But as demand surges, researchers caution that unchecked growth may come at the expense of housing access. For now, though, the formula is simple: a flat with a pool is the hottest ticket in town.
