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By Chukwuma Umeorah
Land prices in Banana Island have surged by more than 540 percent between 2020 and 2025, reaching approximately N3.05 million per square metre, according to the Lagos Residential Market Report 2025 by Edala Development. The report highlights the extraordinary demand for one of Lagos’ most exclusive residential locations over the past five years, driven by limited availability of prime plots and sustained interest in high-end real estate.
“Land prices in Banana Island remain among the most valuable real estate assets in Nigeria. The price per square metre increased by over 540 percent, rising from an average of N470,000 in 2020 to an impressive N3.05 million by 2025,” the report stated.
The surge in land values mirrors robust growth in the area’s luxury residential market, where ultra-luxury mansions and detached houses, many denominated in US dollars, continue to attract strong demand. Rental values in Banana Island also recorded remarkable growth, with a three-bedroom home increasing from N11 million in 2020 to N27.5 million in 2025. Four-bedroom properties rose from N18 million to N30.5 million, while two-bedroom apartments more than doubled in rental value over the period.
Sales prices followed a similar upward trajectory. A four-bedroom home appreciated from N350 million in 2020 to N800 million in 2025, three-bedroom properties climbed to around N600 million, and two-bedroom apartments were valued at approximately N385 million by 2025.
The report also highlighted strong growth across other prime Lagos locations, including Ikoyi, Victoria Island, and Lekki Phase 1. In Ikoyi, one-bedroom apartments rose from N2 million in 2020 to N8 million, two-bedroom units increased by 150 percent, three-bedroom homes grew from N8.5 million to N25.5 million, and four-bedroom properties averaged N28.5 million. Victoria Island recorded similar trends, with four-bedroom rentals rising from N5.4 million to N20 million, and three-bedroom units climbing over 212 percent to N15 million. Lekki Phase 1 also experienced notable growth, with four-bedroom homes increasing from N4.3 million to N13.5 million, three-bedroom units to N11.3 million, two-bedroom apartments to N8.5 million, and one-bedroom units reaching N4.5 million, reflecting high demand across Lagos’ luxury residential hubs.
The sales market across these locations also performed strongly. In Ikoyi, one-bedroom apartments rose from N80 million to N170 million, two-bedroom units from N102 million to N350 million, three-bedroom homes from N255 million to N550 million, and four-bedroom properties from N300 million to N750 million. Victoria Island saw four-bedroom homes increase from N225 million to N750 million, three-bedroom units to N500 million, and two-bedroom apartments to around N350 million. Lekki Phase 1 sales also surged, with two-bedroom apartments rising from N70.5 million to N247.5 million and three-bedroom homes increasing from N102 million to N315.3 million, particularly for properties with verified Certificates of Occupancy, reflecting strong buyer confidence.
Land values also saw dramatic appreciation across these prime districts. In Ikoyi, the average per square metre rose from N420,000 in 2020 to N2.15 million by 2025. Victoria Island recorded an increase from N350,000 to N1.55 million, while Lekki Phase 1 climbed from N264,000 to N1.1 million per square metre, a 316 percent jump. These trends underscore the limited availability of premium plots and the enduring appeal of strategic high-end locations in Lagos’ real estate market.
