The cost of prime residential land in Lagos has risen to about $1 million (₦1.3 billion) for 507 square metres (approx. 1 plot), making the city the second-most expensive among 11 major African cities surveyed, according to an Estate Intel report.
Only Cape Town ranked higher, with $1 million buying approximately 329 square metres of prime residential land. Casablanca came third, with the same amount purchasing about 633 square metres.
The report identified Cape Town, Lagos and Casablanca as Africa’s three most expensive markets for prime residential land.
In Lagos, the analysis covered prime locations including Ikoyi, Victoria Island and Lekki Phase 1, where strong demand, limited land supply and relatively better infrastructure continue to drive up property values.
The report said developers of luxury residential projects are competing for limited sites, while strong sales, occupancy levels and profit margins have further encouraged land acquisition.
By comparison, $1 million could purchase about 4,537sqm in Johannesburg, 3,124sqm in Nairobi and 1,923sqm in Kampala. Abuja ranked fourth on the list, with approximately 1,298sqm obtainable for the same investment.
The report noted that average prime land prices in Lagos have risen above $1,900 per square metre, highlighting the widening gap between property values and local purchasing power.
It also linked the affordability challenge to high mortgage costs and the concentration of new housing supply in luxury and high-end developments.
Recent market data further showed significant increases in land values across Lagos’ prime residential areas. Ikoyi, Victoria Island, Lekki Phase 1 and Ikate have recorded substantial price growth since 2022, driven largely by strong demand, limited supply and increased developer activity.
Despite the high property values, the report noted that residents of some luxury neighbourhoods continue to contend with inadequate public infrastructure, including unreliable water supply, power outages, poor drainage and waste-management challenges.