Rising industrial demand boosts Lagos actual property sector

A brand new half-year actual property report launched by Knight Frank Nigeria reveals that easing inflation, stronger development exercise, and rising industrial demand formed the efficiency of the Lagos property market within the second half of 2025.

The Lagos Market Replace H2 2025, unveiled at a media briefing in Lagos, indicated that moderating value pressures and elevated infrastructure spending helped stabilise key actual property segments, with notable shifts throughout workplace, residential, retail, and industrial markets.

Talking on the briefing, the Senior Accomplice and Chief Govt Officer of Knight Frank Nigeria, Frank Okosun, mentioned the market mirrored the broader financial path of the nation.

“The second half of 2025 introduced a combined however more and more steady financial local weather for Nigeria. Inflation eased additional, development exercise outperformed the broader economic system, and key public infrastructure corridors skilled renewed momentum.

These developments have had a direct affect on how the Lagos property market advanced,” he mentioned.

The Chairman and Managing Director of Knight Frank Africa and the Center East, James Lewis, through the unveiling of the report, recommended Knight Frank Nigeria for constantly delivering high quality analysis reviews and offering steering for stakeholders out there.

“The H2 2025 report revealed renewed momentum within the industrial and logistics section, pushed by improved manufacturing exercise and sustained demand round particular financial zones. The Industrial Buying Managers’ Index rose from 49.1 to 57.0, signaling sector growth. Demand for warehouses close to ports and SEZ corridors additionally strengthened, whereas occupiers outdoors SEZs continued to prioritise extra inexpensive Grade B and C inventory as a result of large rental differentials,” Lewis mentioned.

In his presentation, the Lead Analysis Analyst, Daniel Fabi, defined that workplace market exercise confirmed combined efficiency. Based on Fabi, whereas occupiers remained selective about prime areas, decentralised enterprise districts reminiscent of Ikeja recorded elevated enquiries and transactions, supported by accessibility and price concerns.

“The report means that decentralisation could proceed into 2026 as companies optimise operational prices. Within the residential market, investor curiosity in short-let residences and faster-turnover tasks remained robust, reflecting a rising choice for property with faster returns. The report additionally highlights evolving tenant behaviour as builders and landlords reply with extra versatile residential choices,” he mentioned.

Fabi confused that retail developments continued to be formed by affordability and shopper proximity, including that hyper-local retail codecs outperformed massive conventional retailers, as neighbourhood-based shops benefitted from households adjusting to cost sensitivity and convenience-driven procuring.

Commenting on the broader nationwide context, the Head of Advertising and marketing and Company Communications at Knight Frank Nigeria, Lanre Sonubi, famous that Abuja and Port Harcourt additionally displayed noteworthy developments through the overview interval.

“Abuja recorded steady demand for serviced residences and medium-density housing, whereas Port Harcourt noticed average development fuelled by oil and fuel companies and rising industrial exercise round Trans-Amadi and Eleme. These developments complement the Lagos findings and mirror broader market dynamics nationwide,” Sonubi mentioned.

The H2 2025 Lagos Market Replace notes that infrastructure enhancements throughout Lagos—together with ongoing highway, bridge, and concrete renewal tasks—will proceed to affect land values and funding in rising corridors.

Knight Frank Nigeria is a member of Knight Frank LLP, the main unbiased world property consultancy. Headquartered in London, Knight Frank has greater than 20,000 individuals working from 384 workplaces throughout 51 territories. The group advises purchasers starting from particular person homeowners and consumers to main builders, traders, and company tenants.