The cost of land across Lagos Island’s major residential markets has risen significantly in recent years, with average prices reaching up to N2.5 million per square metre in 2026, according to data from a residential market report covering the corridor.
The Lagos Island Residential Market Report 2026 by real estate company Lagos Realty, seen by Nairametrics, tracks residential rental prices, sales values and land costs across the market between 2022 and 2026.
The report divides the Lagos Island residential market into four submarkets: Ikoyi, Victoria Island, Lekki Phase 1 and Ikate. It notes that rising demand, limited land availability and increased developer activity have supported significant appreciation in land values across the four areas.
For this analysis, Nairametrics focuses on the average land price per square metre across the four Lagos Island submarkets in 2026, while comparing current values with prices recorded in 2022.
Here is what land costs per square metre across the Lagos Island market in 2026.
Ikate – N955,000 per sqm
Ikate has an average land price of N955,000 per square metre in 2026, making it the lowest among the four Lagos Island submarkets covered in the report.
- The area, located immediately east of Lekki Phase 1 and along the Atlantic coastline, has undergone significant transformation in recent years, with low-density residential properties increasingly giving way to mid-to-upper apartment towers and gated residential schemes.
According to the report, the average land price in Ikate increased from N385,000 per square metre in 2022 to N955,000 in 2026, representing a 148.05% increase over the period.
The report attributes the appreciation to increased developer interest and the area’s transition into a more prominent mixed-use residential market. It also notes that waterfront and lagoon-facing parcels command a significant premium over inland plots.
Lekki Phase 1 – N1.5 million per sqm
Lekki Phase 1 has an average land price of N1.5 million per square metre in 2026, making it the second-lowest among the four Lagos Island submarkets covered in the report.
- The area is the most transactionally active submarket on the Island, attracting young professionals, growing families, returning diaspora and institutional investors. Its relative affordability compared with Ikoyi and Victoria Island has also supported continued residential development and demand.
According to the report, the average land price in Lekki Phase 1 increased from N421,000 per square metre in 2022 to N1.5 million in 2026, representing a 256.53% increase over the period.
The report identifies proximity to the Lekki Free Trade Zone and improving road infrastructure as key factors supporting the area’s land value appreciation. It also notes that developer activity has remained strong, with high-rise towers and gated residential schemes at various stages of development.
Victoria Island – N2.1 million per sqm
Victoria Island has an average land price of N2.1 million per square metre in 2026, making it the second-highest among the four Lagos Island submarkets covered in the report.
- The area combines one of Lagos’ major commercial districts with a highly sought-after residential market, with Grade A offices, multinational headquarters, banks and diplomatic missions driving sustained demand for properties.
According to the report, the average land price in Victoria Island increased from N705,000 per square metre in 2022 to N2.1 million in 2026, representing a 197.87% increase over the period.
The report attributes the appreciation to the commercial district premium, increasing demand for mixed-use developments and competition for prime plots around the Eko Atlantic City area.
It also notes that ongoing densification, with new mixed-use towers replacing older low-rise properties, has continued to compress available supply and support land value growth.
Ikoyi – N2.5 million per sqm
Ikoyi has an average land price of about N2.5 million per square metre in 2026, making it the highest among the four Lagos Island submarkets covered in the report.
The area is one of Lagos’ most prestigious residential addresses and is home to diplomats, senior corporate executives, oil company expatriates and high-income households. The report notes that demand continues to outpace new residential completions, while limited land availability has helped sustain property values.
According to the report, the average land price in Ikoyi increased from N1.35 million per square metre in 2022 to N2.45 million in 2026, representing an 81.48% increase over the period.
The report attributes the high land values to the extreme scarcity of available plots, the area’s prestige positioning and its proximity to Eko Atlantic City.
It also notes that luxury residential units in Ikoyi are frequently priced in US dollars, while limited land availability continues to support the submarket’s position as the most expensive of the four areas covered. (Nairametrics)
