* Prime Lagos rents greater than double since 2023
Real property remained one of Nigeria’s largest financial pillars within the first half of 2026, contributing 13.10 per cent to actual Gross Domestic Product (GDP), as decrease inflation, a steadier naira and the brand new Nigeria Tax Act 2025 reshaped demand throughout the Lagos, Abuja and Port Harcourt property markets, in keeping with a brand new report by Knight Frank Nigeria.
The Lagos Market Update H1 2026, launched Monday, confirmed that actual GDP grew by 3.89 per cent within the first quarter, building expanded by 6.38 per cent, and headline inflation eased to fifteen.91 per cent in June from 25.29 per cent a yr earlier. The naira held between N1,360 and N1,380 per greenback, whereas exterior reserves rose above $51 billion.
Senior Partner/CEO of Knight Frank Nigeria, Mr Frank Okosun, famous that: “The first half of 2026 was a period of consolidation. Inflation is well below its recent peaks, the naira has been more predictable and reserves are stronger, giving developers, investors and occupiers a firmer basis for planning. Real estate contributing more than 13 per cent of GDP confirms that property remains central to the country’s economic story.”
In Lagos, rents in prime districts akin to Ikoyi, Victoria Island, Banana Island and Lekki Phase 1 recorded the strongest progress, with rents in a number of areas greater than doubling since 2023. Annual rents for three-bedroom flats now vary from N22 million in Lekki Phase 1 to N45 million in Banana Island. Under the Nigeria Tax Act 2025, residential gross sales and leases are exempt from Value Added Tax (VAT), whereas withholding tax on particular person residential rents has been eliminated. Prime workplace rents stabilised at about $55 per sq. metre monthly, with landlords providing rent-free intervals slightly than cuts.
“Prime residential rents keep climbing because supply remains structurally tight, while affordability is pushing Mainland developers towards smaller units. In the office market, landlords are competing through rent-free periods and fit-out contributions rather than headline cuts, which suggests the market may be approaching a pricing floor,” stated Lead Research Analyst, Mr Daniel Fabi.
Meanwhile, in Abuja, City-centre values continued to rise, pushed by diaspora funding, which accounts for 70 to 80 per cent of gross sales for some builders. Property values in Guzape I and II are rising by an estimated 20 to 30 per cent, whereas workplace rents grew by over 10 per cent because the NRS, ECOWAS and Africa Re buildings added new area.
In the case of Port Harcourt, the market remained resilient, anchored by the oil and fuel sector. Prime demand is concentrated in Old GRA, GRA Phases 1 to three and Peter Odili Road, whereas the mid-market is stronger in Rumuodara, Rumukwurushi and Eliozu.
“Lagos is driven by tight supply and infrastructure, Abuja by diaspora capital and emerging districts, and Port Harcourt by the energy sector and a growing mid-market. Across all three, occupiers are placing a premium on quality, security and reliable utilities,” stated Head of Marketing and Corporate Communications, Mr Lanre Sonubi.
Knight Frank Nigeria is a member of Knight Frank LLP, the main impartial international property consultancy, serving as our purchasers’ companions in property for over 128 years globally, and 60 years in Nigeria. Headquartered in London, Knight Frank has greater than 20,000 folks working from 384 workplaces throughout 51 territories. The Group advises purchasers starting from particular person house owners and patrons to main builders, buyers and company tenants.
