Buying prime land in Lagos now requires roughly US$1 million for 507 square metres, a price point that leaves the city second only to Cape Town among 11 African markets reviewed. Estate Intel’s comparison of what US$1 million buys across selected cities found Cape Town the priciest, where the same sum purchases about 329 square metres, and identified Lagos, Cape Town and Casablanca as the continent’s most expensive for prime residential plots.
The analysis focused on Lagos’ most sought-after addresses, including Ikoyi, Victoria Island and Lekki Phase 1, and based its figures on prevailing prices in select prime locations rather than typical plot sizes. Estate Intel highlighted three structural forces behind Lagos’ premium: sustained demand for luxury sites, a tight land supply, and gaps in infrastructure that keep usable stock constrained.
Those forces translate into stark local numbers. Estate Intel reported average prime land values in Lagos above US$1,900 per square metre. Lagos Realty’s Lagos Island Residential Market Report 2026 provides local currency detail, showing average land prices of ₦2.5 million per square metre in Ikoyi, ₦2.1 million in Victoria Island, ₦1.5 million in Lekki Phase 1 and ₦955,000 in Ikate. The data confirm that land values have appreciated significantly since 2022, sustaining pressure on prices in top neighbourhoods.
The report also flagged a widening affordability gap across African cities as new housing supply concentrates on luxury and deluxe developments. In Lagos, limited access to affordable mortgages and high interest rates raise the cost of long-term housing finance, pushing homeownership further out of reach for many. Related reporting notes only 31% of Lagos residents own homes, while some properties marketed as affordable remain unaffordable when compared with prevailing incomes.
Higher prices have not assured better public services, Estate Intel cautioned. The State of Lagos Housing Market Report 2025 Vol. 3 finds residents in Banana Island, Ikoyi, Lekki Phase 1 and Victoria Island still encounter unreliable water supply and frequent power outages, a mismatch that the report warns could increasingly shape how buyers assess value and the long-term attractiveness of Lagos’ prime neighbourhoods. Continued monitoring will show whether demand and constrained supply keep pushing prices higher or whether affordability and infrastructure gaps begin to alter buyer behaviour.
