Real Estate Market Update — July 2025 Lagos & Ibadan
Ibadan
Growing Demand for Residential and Commercial Estates
In 2025, Ibadan continues to experience steady growth in real estate activity. New residential
estates are springing up in areas like Moniya, Akobo, and Oluyole Extension, catering to
middle-income earners and young professionals. The Oyo State Government reports attracting
over ₦35 billion in real estate investments in the last five years, with much of this focused on
eco-friendly smart city developments along the Lagos–Ibadan Expressway.
Urban Redevelopment Projects Underway
Several large markets in Ibadan, including Agodi Market, are undergoing reconstruction into
modern shopping complexes with dedicated parking spaces, improved fire safety systems, and
environmental compliance features. This is part of broader efforts to modernize the city’s retail
infrastructure after years of underinvestment.
Increase in Land Allocation and Property Documentation
There has been a notable uptick in officially documented land allocations across suburban areas
such as Ido and Egbeda. Authorities emphasize transparency and formal land title processing,
addressing historical challenges around land ownership disputes in the city.
Lagos
Infrastructure Boost Reshaping Property Trends
The ongoing construction of the Lagos–Calabar Coastal Highway and the planned Fourth
Mainland Bridge are set to transform Lagos’ real estate map. Areas like Ibeju-Lekki, Ikorodu,
and Badagry are already witnessing increased land prices, as investors anticipate improved
accessibility and commercial opportunities.
Rental Prices Continue to Surge
Rental costs in central Lagos areas such as Lekki, Victoria Island, and Ikeja remain high.
Residents and housing advocates are calling for more government-backed affordable housing
projects as private market offerings have largely priced out low and middle-income earners.
Focus on Suburban Development
With land becoming scarce and expensive in central districts, real estate growth is pushing
toward suburban zones like Ikorodu, Epe, and the outskirts of Ajah. These areas are seeing the
development of gated residential communities, often marketed as quieter, more affordable
alternatives to the city center.
Market Sentiment
Investors’ Outlook: Positive, especially in Ibadan, where entry-level property prices remain
comparatively lower than Lagos.
Residents’ Concerns: Rising rent prices, especially in Lagos, alongside concerns about urban
congestion and flood-prone areas.
Government’s Role: Focused on attracting investment through infrastructure development while
encouraging formal property registration and urban renewal projects.
