The short-let rental market in Lagos generated an estimated N281.03 billion in revenue in 2025, reflecting the rapid expansion of flexible accommodation services in Nigeria’s commercial capital, according to a new report by Edala Homes.

The market report indicated that the short-let segment continues to expand as demand from business travellers, tourists, expatriates and local professionals drives higher occupancy across key neighbourhoods in the city.

The report analysed 5,806 short-let property listings, using data sourced from AirDNA and Edala Homes’ internal tracking system. It highlighted the growing economic significance of short-term rentals within Lagos’ broader hospitality and real estate sectors.

According to the report, the N281.03 billion recorded in 2025 represents a steady increase from the N264.3 billion generated in 2024, reinforcing Lagos’ position as Nigeria’s leading short-let destination.

Short-let apartments, the report noted, are gaining popularity among travellers seeking the comfort of residential accommodation combined with hotel-style amenities. The segment is increasingly serving a diverse clientele that includes corporate visitors, digital nomads and Nigerians in the diaspora visiting the country.

The report attributed part of the growth in the short-let market to Lagos’ expanding calendar of international conferences, cultural festivals and entertainment activities, which continue to increase demand for short-term accommodation throughout the year.

Some neighbourhoods have emerged as major revenue drivers in the sector. According to the report, Lekki Phase 1 and Lekki Peninsula II recorded the highest revenues, generating about N94 billion and N70 billion, respectively.

Luxury residential districts are also benefiting from the growing demand for premium short-term accommodation. In Ikoyi, known for its upscale residential developments, short-let properties generated approximately N37.5 billion, with revenue projected to rise to N42 billion as demand for high-end stays continues to increase.

Similarly, Victoria Island recorded about N19.3 billion in short-let revenue, with projections indicating potential growth to N21.6 billion in the coming years. Banana Island, one of Lagos’ most exclusive residential areas, generated about N11 billion, with the market expected to exceed N12.4 billion as demand strengthens.

The report also identified several mainland locations as emerging markets within the short-let segment. Areas such as Ikeja, Surulere and Yaba are attracting increasing demand for mid-range short-term accommodation.

According to the report, these neighbourhoods benefit from proximity to commercial districts, transport networks and entertainment hubs, making them attractive to short-term visitors and business travellers.

Analysts noted that the growing popularity of short-let apartments reflects broader lifestyle and travel shifts, with many travellers now preferring flexible accommodation that offers privacy, convenience and home-like comfort.

The report also pointed out that Nigeria’s wider vacation rental market is projected to generate about $595.6 million in revenue by the end of 2025, with annual growth expected to exceed 10 per cent over the next decade.

Rising tourism, increasing business travel and the growing acceptance of alternative accommodation models are expected to continue driving demand for short-let apartments in Lagos and other major Nigerian cities.