Lagos’ real estate market is evolving fast, and one trend in particular is reshaping rental affordability to housing availability and that is the rapid shift by landlords from long-term residential rentals to short-term, shortlet apartments. What once looked like a niche hospitality play has become one of the most powerful forces altering the city’s housing landscape but not always with positive results for everyday renters.
In 2026, many Lagos property owners are increasingly abandoning traditional long-term leases in favour of short-term rental models, driven largely by higher returns, lower tenant risk, and strong demand especially during the festive periods from Nigerians in the diaspora and business travellers.
A two-bedroom apartment that might earn around ₦6 million per year on a long-term lease can, with shortlet pricing, bring in as much as ₦18 million annually, even at moderate occupancy levels. That’s roughly three times what a traditional tenant would pay, without the hassle of delayed payments or long-term wear and tear.
Shortlets also offer flexibility: landlords can reclaim their properties for personal use, manage occupancy around peak seasons, and avoid the common headaches associated with long-term tenancies including rent defaults and difficult eviction processes.
Digital platforms and listing tools have made this transition easier than ever, enabling owners to attract business travellers, holidaymakers, and professionals who prefer furnished, flexible accommodation over rigid annual contracts.
While this shift may look like smart business from a landlord’s perspective, the broader impact on the Lagos housing market is significant and troubling.
As more units that would traditionally serve as long-term rental homes are converted to shortlets, the supply of affordable homes for permanent residents shrinks. This reduction in long-term housing stock has a cascading effect:
- Higher annual rents: With fewer homes available for long-term lease, competition among tenants increases, driving up rental costs across the board. Landlords who remain in the long-term market often take advantage of this scarcity to raise rents further.
- Scarcity for families and long-term residents: People looking for stable, year-round housing find themselves squeezed out of desirable neighbourhoods as properties are repurposed for short-stay visitors.
- Pressure on middle-income renters: As rents rise, many middle-income earners who once depended on the long-term market are pushed to the city’s outskirts or into substandard accommodation.
Urban planners and housing advocates warn that this imbalance risks deepening Lagos’ already severe housing shortage, making long-term affordability a distant dream for many residents.
Traditionally, renting was seen as a sensible choice for many Lagosians: lower upfront cost, flexible commitments, and fewer responsibilities. But those dynamics are changing.
Shortlet conversions reduce the number of homes available for long-term tenancy, leading rents to become less predictable and more expensive especially in key areas, with rental prices climbing as competition for traditional leases tightens.
Compare this to ownership: when you buy a property, you lock in your cost today, secure a hedge against inflation and rent increases, and gain the freedom to choose how the asset is used, whether as a rental (long-term or short-let), a future home, or a legacy unit. The alternative is watching rental rates rise year after year, with no equity, no control, and ever-shrinking options.
Owning Is Now the Smarter Choice
With rental supply dwindling and pricing pressure on the rise, the advantage increasingly shifts to those who own rather than rent. Here’s why making a down payment now is the smarter choice:
- Price Appreciation: Property values in Lagos have consistently trended upward, especially in areas of infrastructure growth and commercial activity.
- Income Flexibility: Once you own, you choose how to monetise your asset, whether as a long-term rental, shortlet, or hybrid model that balances stability with yield.
- Inflation Protection: Owning shields you from rent inflation and sudden spikes in tenancy costs.
- Legacy Asset Creation: Property remains one of the most reliable ways to build intergenerational wealth in Nigeria’s economy.
By acting no, you position yourself ahead of future scarcity and rising costs.
The rise in the dominance of the shortlet rental is both a symptom and a catalyst of broader housing market shifts in Lagos. While this trend offers attractive returns for investors, it also highlights a stark reality: stable, affordable homes are becoming harder to find.
If you’ve been on the fence about getting into property ownership, there’s no better time than now to take action. At Geoponts Properties, we help buyers navigate this dynamic market with clarity and confidence from identifying high-potential locations to securing verified titles and structuring flexible payment solutions.
Talk to our expert team today and discover how you can secure your own home or investment property before rental pressures make it even more costly.
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