Brief-let flats are quickly gaining floor in Lagos as landlords and property traders more and more transfer away from conventional long-term leases.
This pattern is rising amid tight housing provide within the residential lease market and rising considerations round rental dangers.
Findings from Nairametrics interviews with operators throughout the state present that greater returns, diminished tenant danger, and powerful demand—significantly from Nigerians within the diaspora—are driving the shift.
The rising presence of short-let items throughout a number of neighborhoods, together with builders introducing luxurious choices, highlights the fast growth and competitiveness of this rising market.
What they’re saying
Talking with Nairametrics, Founding father of Theglams Realtor & Charoite Stones Restricted, Lateef Mobolaji, mentioned short-let flats have constantly outperformed typical long-term residential leases.
- He highlighted the Ikate space, the place two-bedroom items provide considerably greater earnings potential by short-term bookings, even at average occupancy.
- He famous that operators usually spend tens of millions to furnish and equip their properties, making certain they stay enticing to shoppers.
“Even with 50% occupancy, short-let items outperform typical leases. By the tip of the primary 12 months, operators who file at the very least 50% occupancy can get well their preliminary funding and begin making earnings all through the second 12 months,” Mobolaji defined.
Chief Working Officer of Deity Properties Int’l Restricted, Moyosore Badejo, echoed comparable views, emphasizing that short-let flats present greater, extra predictable returns than typical leases whereas giving house owners management over the property’s situation.
“For a two-bedroom property in Ikeja GRA that goes for N6 million per 12 months as residential lease, I could make N500,000 in simply 5 days of bookings every week at N100,000 per day. With round 70% occupancy, such a short-let unit can generate about N18 million yearly, or roughly 3 times the earnings of residential lease,” he mentioned.
Different causes landlords and traders want short-let
Badejo defined that short-let items scale back the dangers related to long-term tenants. He famous that a few of his properties have been beforehand leased conventionally, however tenants usually struggled to resume after the primary 12 months, generally paying in installments or delays—an issue that doesn’t happen with short-term leases.
- He added that everlasting occupancy in typical residential leases additionally locations extra load on the property, leading to greater restore and upkeep prices when tenants ultimately transfer out.
- Different elements are driving landlords and traders towards short-let flats. Michael Obot, who manages two four-bedroom duplexes in Ikeja for a property proprietor, instructed Nairametrics that the items have been initially bought for private use, however the proprietor couldn’t occupy them.
“Maintaining the flats idle or placing them on long-term lease wasn’t sensible. Brief-term leases allowed the items to generate earnings whereas nonetheless giving the proprietor the flexibleness to maneuver in each time wanted,” he mentioned.
Changing the items into short-term leases allowed them to generate earnings whereas remaining accessible for private use.
- Badejo additional famous that a few of his short-let properties have been as soon as leased conventionally, however tenants usually struggled to resume after the primary 12 months. When renewals occurred, they have been generally partial or delayed, a problem not current with short-stay preparations.
- He added that everlasting occupancy in typical leases will increase put on and tear, resulting in greater restore and upkeep prices when tenants transfer out and the property must be ready for the following occupant.
Challenges of an increasing short-let market
Whereas short-let flats provide enticing returns, operators highlighted challenges arising from the fast development of the sector.
Mobolaji defined that many Nigerians within the diaspora, who beforehand stayed in short-let items throughout visits, at the moment are constructing and itemizing their very own properties for short-let.
A few of these items have been occupied by the house owners through the festive interval of 2025, significantly in December and New Yr, including extra provide to an already rising market.
He additionally famous that landlords are more and more giving tenants stop notices to both lease their flats to short-let operators or handle the short-let enterprise themselves.
“The rising attraction of short-let operations has contributed to rising lease costs, significantly in high-demand areas corresponding to Lekki,” Mobolaji mentioned.
The inflow of recent items has created ample choices for shoppers, intensifying competitors amongst short-let operators.
Because of this, operators now face stress to preserve high-quality interiors, furnishings, {and professional} administration to draw bookings and stay worthwhile.
Staying aggressive in a crowded market
Because the short-let sector grows, operators and builders are adopting methods to preserve profitability and entice shoppers.
To encourage repeat bookings, operators concentrate on providing experiences that shoppers’ personal houses can’t present, together with premium options, leisure choices, seamless operations, safe places, and an inviting atmosphere.
Builders are additionally pivoting to luxurious choices to face out in a market the place fundamental items have change into the norm.
Temidayo Oleyede, CEO of Edala Growth, instructed Nairametrics that in Lagos, the place most short-let items are normal, luxurious and professionally managed flats are essential to differentiate properties.
“Luxurious and professionally managed items are crucial to face out in a market the place fundamental flats are normal. Buyers are looking for well-managed short-let items as a result of they provide predictable returns that outperform conventional residential leases,” he famous.
Edala’s ongoing Yaba undertaking, for instance, is being developed as a luxurious property with a rooftop pool and enhanced facilities aimed toward high-end clientele.
Since 2025, competitors has prompted some operators to shift towards renting totally furnished flats for typical residential leases. Furnished items generate greater earnings than empty flats, and since the furnishings are fastidiously chosen for every property, eradicating or promoting them is commonly impractical.
Providing ready-to-use, well-equipped houses permits landlords and operators to maximise earnings whereas assembly tenants’ demand for comfort and high quality.
What you need to know
The rising shift towards short-let flats is going down at a time when Lagos is already going through constrained provide within the residential lease market.
While operators said diaspora-driven demand continued to support short-let bookings, experiences through the 2025 Detty December season have been blended.
A number of operators famous that the festive interval was more durable than in earlier years, largely resulting from a surge in new short-let flats that unfold demand throughout extra items.
They added that bookings dropped sharply after the primary week of January 2026, in contrast to earlier intervals when sturdy demand usually prolonged into February, with fewer company choosing prolonged stays.
