Knight Frank report charts Lagos, Abuja and Port Harcourt property shifts
Written on
Knight Frank's H1 2026 Lagos Market Update shows prime Lagos rents more than doubling since 2023, Grade A office rents steadying near $55 per square metre and values in Abuja's Guzape districts rising 20 to 30 per cent.
Knight Frank Nigeria's H1 2026 Lagos Market Update describes a property market shaped by rising residential costs, infrastructure investment and increasingly selective occupier demand across Lagos, Abuja and Port Harcourt. The report put construction sector growth at 6.38 per cent year-on-year in the first quarter of 2026, with real estate accounting for 13.10 per cent of real GDP, while headline inflation eased to 15.91 per cent in June from 25.29 per cent a year earlier.
In Lagos, residential rents continue to rise amid limited formal supply, particularly in prime locations including Ikoyi, Victoria Island, Banana Island and Lekki Phase 1, with some rents more than doubling since 2023. Demand is shifting towards more affordable studios, mini-flats and two-bedroom homes on the Mainland, while transport and road projects such as rail network expansion and improvements along the Lekki-Epe corridor are reinforcing interest in growth areas including Ajah, Sangotedo and Ibeju-Lekki.
Commercial demand is more selective. The report said Grade A office rents have stabilised at about $55 per square metre monthly, with landlords increasingly offering fit-out contributions, concessions and flexible lease terms to attract tenants. In the industrial market, Grade A rents in Alaro City and Lagos Free Zone are reported at $4 to $6.5 per square metre monthly, and changes to the effective tax regime for free trade zones may influence investment decisions.
In Abuja, property values are rising in selected districts, with Guzape I and II recording reported increases of 20 to 30 per cent. Prime districts such as Maitama, Asokoro and Wuse 2 face saturation, encouraging regeneration and new supply, while diaspora investment remains an important driver. Commercial rents in the capital increased by more than 10 per cent in the first half of the year, supported by demand for quality office space and flexible work environments.
Port Harcourt's market remains supported by the oil and gas sector, which underpins demand for premium housing, offices, hospitality and industrial facilities. Residential demand is concentrated in established neighbourhoods such as Old GRA, GRA Phases 1 to 3 and Peter Odili Road, alongside mid-market locations including Rumuodara, Ada George and Eliozu. Office tenants increasingly prioritise reliable power, lifts, parking, security and professional facilities management, leaving older buildings under pressure to refurbish or compete on price.
Frank Okosun, Senior Partner and Chief Executive Officer of Knight Frank Nigeria, said the market is showing resilience but that performance is increasingly location- and asset-specific, adding that infrastructure can unlock new opportunities while investors and developers must respond to affordability pressures, operating costs and clearly demonstrated demand. Lead Research Analyst Daniel Fabi said occupiers across the three cities are prioritising value and functionality, with residential demand splitting between prime property and more affordable options.