Lagos Real Estate Market Struggles with Housing Supply Shortage Despite 34,800 Units in Pipeline

The Lagos real estate market is experiencing a severe housing deficit, with only 1.8 million housing units available against a demand for 2.7 million units. The pipeline of 34,800 units currently under development falls short of addressing the housing shortage, particularly in the middle-income segment.

Prices for three-bedroom apartments in prime locations like Ikoyi and Victoria Island have surged by 38% to 60% annually over the past five years due to high demand and limited supply. The undersupply is also evident in areas like Yaba, Ajah, and Sangotedo, leading to price increases and strong upward momentum.

Despite challenges such as currency depreciation and high construction costs, the luxury real estate segment remains stable, while the middle-income segment faces affordability issues. The report highlights the need for a stronger focus on affordable housing to address the structural imbalance in Lagos's housing market.