What’s a Good ROI for Real Estate in Lagos or Abuja?

Zikan Realtors
Nov 5
3 min read

When it comes to Nigerian property investment, Lagos and Abuja remain the powerhouses — each offering different profit dynamics depending on your investment type, time horizon, and risk appetite.

But the key question diaspora investors ask is: “What’s a realistic and sustainable return on investment (ROI) I should expect?”

Here’s a data-driven breakdown of ROI benchmarks, factors influencing returns, and what “good performance” truly means in Nigeria’s two largest real estate markets.

Man smiling with coffee in a modern room, sunset view. Tablet with rising graph, model building, and cash on table. Text: GOOD ROI.

1. Understanding Real Estate ROI in Nigeria

ROI (Return on Investment) measures how much profit you make relative to your capital.In real estate, this comes in two primary forms:

Rental Yield — Annual rent income as a percentage of property value.
Capital Appreciation — The increase in property value over time.

A healthy investment balances both — steady rent and long-term appreciation.

2. Average ROI Benchmarks (2025 Estimates)

Investment Type	Lagos ROI Range	Abuja ROI Range
Luxury Apartments	7–12% annual rental yield	6–10% annual rental yield
Short-Let Apartments	12–20% annual ROI	10–15% annual ROI
Buy-to-Let Flats (Mid-Tier)	6–10%	5–8%
Commercial Property (Shops, Offices)	10–18%	8–14%
Land (Developing Areas)	25–50% annual appreciation	20–35% annual appreciation
Off-Plan Developments	15–25% ROI at project completion	10–20% ROI

These figures reflect verified market data from developers, estate valuers, and property managers across Nigeria’s top districts as of early 2025.

3. Lagos: The Appreciation Capital

Lagos remains Nigeria’s highest-yielding real estate market, driven by:

Massive population growth and migration.
Infrastructural expansion (Lekki–Epe Expressway, Deep Sea Port, Dangote Refinery).
High demand for short-term rentals and commercial spaces.

Top-performing zones:

Lekki–Epe Axis: 30–45% annual land appreciation.
Ikoyi & Victoria Island: 10–15% rental yield for luxury apartments.
Ajah & Sangotedo: 20–35% appreciation for mid-tier residential plots.

Diaspora Insight: Investors who bought in Ibeju-Lekki between 2017–2019 at ₦2M–₦3M per plot now hold assets worth ₦20M–₦30M in 2025 — a staggering 800–1000% ROI.

4. Abuja: The Stability Market

Abuja offers lower volatility but strong stability. Its demand comes mainly from professionals, diplomats, and civil servants.

Top-performing zones:

Maitama, Wuse 2, Jabi: 8–10% rental yields; high occupancy.
Lokogoma & Apo: 20–30% annual land appreciation.
Gwarinpa: Consistent rent growth (₦2M–₦4M annual rent for 3-bed units).

Abuja properties hold value longer and attract quality tenants with minimal default risk.

5. Factors That Affect ROI

Your ROI depends on these strategic levers:

Location: Proximity to roads, schools, and business districts.
Property Type: Luxury units take longer to sell but rent higher.
Developer Credibility: Avoid delayed or non-delivered projects.
Property Management: Efficient tenant and maintenance handling preserves ROI.
Foreign Currency Exposure: Dollar-based income from short-lets enhances real value.

6. How to Boost ROI as a Diaspora Investor

Buy during the pre-launch phase: Gain 10–20% instant equity when projects go public.
Leverage short-let conversion: Furnish units for Airbnb rentals.
Work with management firms: Protect cash flow and maintain high occupancy.
Invest near growth corridors: Focus on infrastructure-driven areas like Epe (Lagos) or Kuje (Abuja).

7. ROI Reality Check

While marketers may promise 100% in six months, the truth is:

“A sustainable ROI in Nigerian real estate averages 10–25% annually for developed property and up to 50% for strategic land investments.”

Smart investors combine both — short-term rental income and long-term land appreciation.

Final Thought

Lagos delivers speed and high reward; Abuja offers consistency and security. The best ROI depends on your goals — quick flips or stable income.

Zikan Prop Solutions helps diaspora investors calculate real-world ROI, identify high-yield zones, and manage profitable real estate portfolios with full transparency.