Banana Island Land Prices Jump Over 540% to ₦3.05m Per Sqm in Five Years

• Land prices in Banana Island have surged by over 540% since 2020, hitting about ₦3.05 million per square metre in 2025, underscoring strong demand and limited supply across Lagos’ most exclusive neighbourhoods

Land values in Banana Island, one of Lagos’ most prestigious residential enclaves, have recorded an extraordinary surge of more than 540% between 2020 and 2025, climbing to approximately ₦3.05 million per square metre in 2025.

This revelation is contained in the Lagos Residential Market Report 2025 released by Edala Development, which attributes the sharp rise to limited land availability and sustained demand for prime real estate in the area.

According to the report, average land prices in Banana Island rose from about ₦470,000 per square metre in 2020 to ₦3.05 million in 2025 — the most dramatic growth recorded among all locations reviewed. The report noted that the area’s ultra-luxury residential market, dominated by high-end mansions and detached homes often priced in US dollars, continues to attract wealthy buyers and investors.

“Land prices in Banana Island remain among the most valuable real estate assets in Nigeria,” the report stated. “The price per square metre increased by over 540%, rising from an average of ₦470,000 in 2020 to an impressive ₦3.05 million by 2025.”

The rental market in Banana Island also recorded strong growth during the period. Three-bedroom homes that rented for ₦11 million in 2020 rose to ₦27.5 million in 2025, while four-bedroom properties increased from ₦18 million to ₦30.5 million. Two-bedroom apartments more than doubled in rental value within the same timeframe.

On the sales side, a four-bedroom home appreciated from ₦350 million in 2020 to about ₦800 million in 2025. Three-bedroom properties rose to around ₦600 million, while two-bedroom apartments were valued at roughly ₦385 million by 2025.

Beyond Banana Island, the report highlighted consistent rental growth across other high-end Lagos neighbourhoods, including Ikoyi, Victoria Island, and Lekki Phase 1. In Ikoyi, one-bedroom apartments climbed from ₦2 million in 2020 to ₦8 million in 2025, while three-bedroom homes rose from ₦8.5 million to ₦25.5 million. Four-bedroom properties averaged ₦28.5 million by 2025.

Victoria Island recorded similar gains, with four-bedroom rentals increasing from ₦5.4 million to ₦20 million, and three-bedroom units rising by over 212% to ₦15 million. Lekki Phase 1 also saw notable growth, with four-bedroom homes rising from ₦4.3 million to ₦13.5 million and one-bedroom apartments reaching ₦4.5 million.

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Sales markets across these areas also delivered strong capital appreciation. In Ikoyi, one-bedroom apartments increased from ₦80 million to ₦170 million, while four-bedroom homes rose from ₦300 million to ₦750 million. Victoria Island saw four-bedroom homes climb from ₦225 million to ₦750 million, while Lekki Phase 1 recorded sharp gains, with two-bedroom apartments surging from ₦70.5 million to ₦247.5 million.

Land values followed a similar upward trajectory. Ikoyi land prices rose from ₦420,000 per square metre in 2020 to ₦2.15 million in 2025, while Victoria Island increased from ₦350,000 to ₦1.55 million. Lekki Phase 1 recorded a 316% jump, rising from ₦264,000 to ₦1.1 million per square metre.

The report aligns with earlier findings that Lagos’ luxury property market has delivered strong returns over the past five years. Prime areas such as Eko Atlantic, Ikoyi, Banana Island, and Victoria Island recorded annualised gains ranging from 38% to 60% in naira terms, reinforcing Lagos’ position as one of Africa’s most attractive destinations for high-end real estate investment.