In 2021, Lagos shortlets were printing money. In 2023, oversupply triggered a reckoning. In 2025, the market has stratified — winners are those who understand the new rules.

The Numbers: Then vs Now

At the peak (2020–2022), well-managed Lekki Phase 1 properties achieved 80–90% occupancy and 20–25% gross yields. Current 2025 benchmarks:

  • Ikoyi: 75–85% — premium corporate market; resilient
  • Victoria Island: 65–75% — corporate + leisure; mixed
  • Lekki Phase 1: 60–70% — correction from oversupply
  • Lekki Phase 2/Chevron: 50–65% — significant oversupply
  • Abuja Maitama/Asokoro: 70–80% — undersupplied premium segment

What's Changed

Guest Expectations Have Risen Dramatically

The guest wowed by air conditioning in 2020 now expects fast broadband, smart TVs, premium bedding, professional photography, and 24/7 management.

Management Quality Is Now a Differentiator

A property with 4.8 stars can achieve 40% higher occupancy than an equivalent at 4.2 stars. In an oversupplied market, guests filter ruthlessly by ratings.

Where It Still Works in 2025

Ikoyi

The corporate traveller market is uniquely insulated. Entry cost is high (₦150M+) but yields remain compelling for cash buyers.

Abuja Maitama/Wuse 2

Abuja remains dramatically undersupplied in quality shortlet product. Yields of 18–22% are achievable for premium properties here.

The Honest Assessment

For leveraged buyers in oversupplied Lagos corridors, model 60% occupancy — not 80%. For cash buyers in prime Ikoyi or Abuja Maitama, the case remains compelling.