Why Condos Are the Ultimate Cash Cow: Unlocking Profits in Lagos’ Shortlet Market in 2025
As the festive season of 2024 wrapped up, headlines across major Nigerian media platforms celebrated the massive revenue generated by shortlet apartments and Airbnb rentals in Lagos. Reports from reputable media houses such as The Guardian Nigeria, BusinessDay, and Punch Newspapers highlighted how condo owners capitalized on the surge in demand for short-term rentals during Christmas and New Year. It’s no surprise that Lagos, the bustling commercial capital of Nigeria, saw unprecedented growth in the shortlet market. The influx of tourists, expatriates, and Nigerians returning home for the holidays created a high demand for luxury and budget-friendly accommodations. Owners of well-furnished condos raked in millions of naira in just a few weeks. This trend isn’t limited to the holiday period alone. Lagos has consistently proven to be a hotspot for shortlet profitability year-round, with consistent demand driven by business travelers, corporate events, and lifestyle tourism. But with inflation and rising living costs, some are questioning whether investing in condos is still a smart move in 2025. Here’s why it absolutely is. 1. The Numbers Don’t Lie: According to BusinessDay, Lagos homeowners offering short-term rentals earned as much as 40% higher profits compared to 2023, particularly during peak seasons. This performance was largely driven by the growing appeal of condos over traditional hotels, thanks to their affordability, privacy, and home-like comfort. For instance, a luxury one-bedroom condo in prime locations like Lekki or Victoria Island could fetch between ₦100,000 and ₦150,000 per night during the festive period. Multiply that by 20-25 nights of full occupancy, and you’re looking at a revenue of over ₦2 million in just one month! 2. Why Condos Dominate the Shortlet Market: • Location and Accessibility: Many condos are strategically located in areas with high tourist or business activities, such as Lekki Phase 1, Victoria Island, and Ikoyi. • Affordability vs. Hotels: Renting a fully furnished condo offers better value for money compared to hotel stays, especially for families or groups. • Flexibility: Travelers appreciate the flexibility of cooking their meals, hosting guests, and enjoying more personal space. • Repeat Customers: With exceptional service, many shortlet providers enjoy repeat bookings and referrals. 3. Inflation and the Real Estate Market: While inflation might seem like a deterrent, it has actually created opportunities for savvy investors. Property values in Lagos’ prime areas continue to appreciate. Investing in condos not only secures a steady income stream but also ensures capital gains over time. For example, a condo purchased in 2023 for ₦70million in Lekki phase 1 is now worth over ₦150million, and that’s excluding the annual rental income it generated. Inflation, when viewed strategically, underscores the importance of owning tangible, appreciating assets like condos. 4. The Evolving Lifestyle of Renters: Short-term renters are no longer just expatriates or tourists. Young Nigerian professionals are opting for shortlet apartments for staycations, bridal showers, and even remote work. The rise of digital nomadism means a growing number of people are looking for stylish, functional spaces that combine work and leisure. 5. Seize the Opportunity in 2025: With an ever-growing population, increasing urbanization, and Lagos remaining the epicenter of Nigeria’s economy, the demand for quality shortlet apartments will only intensify. Early adopters of condos in 2025 can expect exponential returns as the market continues to thrive. What the Media Says • The Guardian Nigeria reports that Lagos will remain Africa’s real estate hub, with short-term rentals contributing a significant percentage of its real estate revenue. • BusinessDay predicts that Lagos’ hospitality sector will grow by over 20% in 2025, driven by increased investments in high-yield assets like condos. • Punch Newspapers emphasizes how condos are redefining the travel experience, making them a top choice for millennials and Gen Z travelers. Conclusion Investing in condos in Lagos is not just viable—it’s one of the smartest financial decisions you can make in 2025. The demand for shortlet apartments is not slowing down, and the potential for high returns is undeniable. Whether you’re a seasoned investor or a first-time buyer, the time to act is now. With the right property in the right location, you can secure a steady income stream, enjoy significant capital appreciation, and be part of Lagos’ booming real estate success story. Your condo investment isn’t just a property—it’s your ticket to financial freedom. Written by: Azuka Chinaza Sheila General Manager, Nevada Luxury Homes. 08034456595, chinazaazuka2@gmail.com