Land prices in Banana Island have surged by more than 540% over the past five years, reaching an average of N3.05 million per square metre in 2025, according to the Lagos Residential Market Report 2025 by Edala Development. The dramatic rise reflects strong demand for one of Lagos’ most exclusive residential areas, limited land availability, and continued appetite for ultra-luxury properties.
The report shows that prices jumped from N470,000 per square metre in 2020 to N3.05 million in 2025. Rental values also climbed sharply: a three-bedroom home increased from N11 million to N27.5 million, while four-bedroom properties rose from N18 million to N30.5 million. Sales markets mirrored this trend, with four-bedroom homes appreciating from N350 million to N800 million and three-bedroom properties rising to about N600 million.
Other prime Lagos locations also saw significant growth. In Ikoyi, per-square-metre land prices increased from N420,000 to N2.15 million, while Victoria Island rose from N350,000 to N1.55 million and Lekki Phase 1 from N264,000 to N1.1 million. Rental and sales values across these high-end districts showed consistent gains, highlighting the resilience and continued attractiveness of Lagos’ luxury real estate market.
The report attributes these gains to limited supply, strategic location, and strong investor confidence, particularly in waterfront and ultra-luxury residences. Overall, annualized gains across these prime areas ranged from 38% to 60%, underlining the lucrative nature of high-end property investments in Lagos.
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