• 300 private developers, corporations top list of allottees
• Ranks as third priciest neighbourhood after Old Ikoyi, Banana Island
• Land prices trigger rise in choice locations in Lagos
Lagos, Nigeria’s bustling commercial nerve centre, is witnessing a silent but significant migration, this time not by the masses, but by the wealthy elite and corporate organisations.
As urban congestion and declining infrastructure take their toll on key areas such as Lagos Island, Victoria Island, and some parts of Ikoyi, many high-net-worth individuals and corporations are relocating to the new Eko Atlantic City.
Built on reclaimed land from the Atlantic Ocean and protected by an 8.5-kilometre sea wall, the city has emerged as a symbol of luxury and forward planning. Its wide roads, underground drainage systems, uninterrupted power supply, and secure environment have drawn the attention of local and international investors.
The shift marks a new chapter in Lagos’ real estate evolution. Previous prime commercial and residential zones are now plagued by traffic congestion, environmental degradation, informal trading, and security concerns. For instance, Flooding has become a signpost for many streets and neighbourhoods in Ikoyi, Lekki and Victoria Island.
Property analysts say these concerns have flattened or reduced real estate values in several parts of the metropolis, especially Lagos Island, making once-coveted addresses less attractive to tenants and discerning buyers.
For instance, markets like Balogun, Idumota, and Mandilas have expanded far beyond their original footprints, spilling into residential streets, swallowing pavements, and choking the arteries of Nigeria’s commercial capital.
While the relentless expansion of trade has powered economic survival for many, it has left behind a complex trail of consequences, most notably for property values and corporate organisations such as banks.
From dawn till dusk, the streets of Lagos groan under the weight of activity. Traders display wares on sidewalks and spill into the streets, causing severe bottlenecks. Commercial buses jostle for space with private vehicles, while pedestrians weave between carts and stalls.
The influx of commercial activity has created a paradox in the property market. In high-traffic zones like Breadfruit Street, Martins Street, and Idumagbo Avenue in Lagos Island, demand for retail space is driving up commercial property values. Multi-storey buildings are being converted into shopping plazas, mini-marts, and storage spaces to accommodate the influx of traders.
Some banks are also grappling with logistical headaches such as cash-in-transit delays, vandalism risks, and restricted vehicle access. To adapt, several banks have downsized or closed their branches, shifting focus to digital banking and agency models using mobile money operators and POS agents.
While some banks that historically had iconic branches near Balogun or Idumota have either relocated their main operations to Victoria Island, Ikoyi or Marina, others are moving their headquarters to the ambitious urban development rising from the former Bar Beach in Victoria Island, Eko Atlantic City.
In recent months, major corporations have moved to secure premium office space within the Eko Atlantic City. MTN Nigeria is developing a new headquarters in Eko Atlantic, while First Bank is set to construct a 40-storey tower that will redefine the city’s skyline. Other notable occupants include the Dangote Group and the United States Consulate, which is building a new diplomatic campus in the area.
Also, top private developers are raising their stakes by buying into the much-desired real estate and offering off-plan sales to prospective subscribers. Plots have been partitioned into residential, commercial, or mixed-use purposes, aligning with Eko Atlantic’s vision as a mixed-use city.
Currently, residential projects are booming, with luxury high-rises offering multimillion-dollar waterfront apartments designed for Nigeria’s high-net-worth individuals and expatriate executives. These developments combine panoramic ocean views with concierge services, helipads, and private marinas.
Prices for land in Eko Atlantic City vary significantly depending on the type, size, and location. According to the Lagos Housing Market Report by the Roland Igbinoba Real Foundation for Housing and Urban Development (RIRFHUD), a plot of land in Eko Atlantic, which was valued at around N180 million in the early 2000s, has now skyrocketed to over N2 billion, highlighting the rapid appreciation of high-end coastal real estate in Lagos.
The report noted the extraordinary appreciation underscores that real estate in Lagos has become a primary vehicle for wealth accumulation. The market dynamism is driven less by a pure housing need for the general populace and more by its function as a high-yield investment vehicle for the affluent, including a significant proportion of diaspora investors.
The average price for all types of land in Eko Atlantic is around N5 billion. Mixed-use land averages around N6.5 billion, while residential land averages around N1,580,000,000. Private developers are already cashing out, but sales are slow.
For instance, one-bedroom apartments start at $500,000, two-bedroom apartments range from $477,300, depending on floor level and view, three-bedroom apartments start at $500,950, and four-bedroom apartments start at $1,200,000.
It is envisioned as a new financial epicentre for West Africa and offers proximity to Lagos’s existing commercial districts while providing a modern environment tailored for business operations.
The city is designed to accommodate over 250,000 residents and facilitate daily commuting for approximately 400,000 people, positioning it as a significant contributor to Nigeria’s economy with an expected yearly addition of over $1 billion through real estate, services, tourism, and employment opportunities.
As of May 2025, approximately 6.52 million square meters (or 652 hectares) of land have been reclaimed through sandfilling in the city. This accounts for about 65 per cent of the project’s planned 1,000 hectares of reclaimed land. The development is progressing in phases, with Phases one and two – covering a combined area of 500 hectares – substantially completed. These phases feature defined road networks, street lighting, and other infrastructural elements.
The Guardian gathered that the city’s appeal is rooted in its promise of exclusivity, security, and modern amenities – a stark contrast to the congestion and infrastructural challenges of mainland Lagos. With underground utility systems, eight-lane roads, and flood-resistant construction, Eko Atlantic is positioned as a climate-resilient investment hub.
In addition to its physical allure, Eko Atlantic operates within a Free Trade Zone, giving developers and investors access to tax incentives and streamlined regulations. This economic status has further fueled demand from international companies looking to establish a West African base.
Senior officials of the company stated that Eko Atlantic City’s commitment to developing state-of-the-art infrastructure and amenities underscores its vision of becoming a leading destination for luxury living and business in Africa, adding that ongoing projects aim to enhance the quality of life for residents and create a conducive environment for businesses to thrive.
Head of Corporate Communications, Eko Atlantic City, Joanna Fabikun, told The Guardian that over 80 per cent of the project has already been sandfilled. “Phases one, two, and three are fully completed, including infrastructure. Sandfilling continues for phases four, five and six, creating new opportunities for those who missed out on the early buy-in price of the initial phases.”
According to her, over 300 investors have committed to the project. “These include major corporations such as MTN, Airtel, First Bank, as well as the US Consulate, which will be the largest in the world. In addition, many private individuals have also invested in the project. Prices are highly competitive considering the numerous advantages offered.”
Fabikun explained that the city offers numerous advantages, including world-class infrastructure, reliable utilities, breathtaking ocean views, a pedestrian-friendly environment, attractive Free Zone incentives, and construction benefits such as basement parking being easily achievable.
“The attraction is mainly because most areas lack basic amenities, and choices are few and constrained. It’s an expensive neighbourhood designed for the rich. It’s also only affordable to the upper income class,” Prof. Austin Otegbulu, Chairman of the Board of Trustees (BoT) of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) told The Guardian.
He said there is a scarcity of balanced and environmentally friendly neighbourhoods in Lagos, as in other parts of the country. “For these reasons, there is a quality gap in our urban neighbourhoods. Affluent Nigerians will always flock to any new area promising to provide what is lacking in the existing neighbourhoods, real or imaginary.
“Eko Atlantic City will surely compete with Old Ikoyi, Banana Island, and Victoria Island. When fully developed, it will reduce demand in these neighbourhoods and may dilute their values.”
The Chief Executive Officer of Northcourt, a real estate firm, Ayo Ibaru, told The Guardian that the ripple effect of Eko Atlantic’s premium pricing benchmarks on other neighbourhoods affects Lagos’ real estate ecosystem. “Since the project began, prices in Victoria Island and Lekki have risen, accelerating gentrification. Arguably, this growth has also come from macroeconomic headwinds.
Despite its success, the project has faced criticism over its exclusivity and limited affordability. Urban analysts have raised concerns about the social divide that may deepen in a city already grappling with housing inequality.
“The initiative creates a luxury property market and attracts international developers with knowledge and capital. It, however, skews the balance of housing affordability in a city where an estimated 60 per cent live in informal settlements.”
Ibaru observed that Eko Atlantic City addresses Lagos’ pressing coastal erosion, population density, and infrastructure deficits, but with the High-net-worth individuals (HNIs) as a priority. “While its valuation metrics remain robust, the project’s success will hinge on governance, its ability to avoid the under-occupation patterns of its global peers and the political environment.
“There are persistent counterpoints. While land reclamation disrupted marine ecosystems, changes in coastal dynamics may raise erosion hazards for neighbouring areas. The development’s exclusivity and car-dependency somewhat contradict social sustainability principles.
“Despite engineering efforts, climate change-induced sea level rise and severe storms threaten this coastal development’s existence. The project is vulnerable to global economic downturns, hurting foreign investors.
“There’s also Nigeria’s macroeconomic volatility (currency swings, inflation). Price adjustments during the 2023-2024 economic slowdowns show this sensitivity. While a long shot, growing inequality in Lagos could cause social upheaval or regulatory changes that hurt exclusive developments.”
Otegbulu, who doubles as professor of Estate Management and Environmental Valuation, University of Lagos, pointed out that the dredging and reclamation exercise destroyed mangroves. “There are also serious concerns about the effect of the project on marine life, rising water temperature and coastal erosion.
“The seawall created to protect against erosion and flooding in the new city may shift the burden of erosion to other areas. Rising temperature might also affect marine life, leading to ecological imbalance and a negative impact on the blue economy.”(Guardian)
