Lagos land scarcity is pushing homes into the sky, Elara CEO says
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With developable land in Lagos shrinking and prices climbing, developers are turning to high-rise residential buildings to fit more homes on expensive parcels, Elara Development's CEO tells Nairametrics.
As Lagos continues to grow and available land becomes increasingly constrained, the way homes are developed across the city is beginning to change, with developers in sought-after locations looking upward to create high-rise residential communities that can accommodate more homes on increasingly expensive parcels of land.
Elara Development is directly involved in this shift. Ayodeji Johnson, the company's Managing Director and Chief Executive Officer, said in an interview with Nairametrics that Elara is currently developing a 12-storey residential high-rise in Victoria Island comprising 47 premium residences on approximately 1,600 square metres of land.
Johnson said the shift is reflected in buyer preferences, including Nigerians living and working in central Lagos, members of the diaspora and investors seeking properties that retain and appreciate in value. He noted that today's buyers are increasingly discerning, conducting more thorough due diligence on development firms and their consultant teams, evaluating floor plans closely, and expecting higher standards across amenities, finishes and appliances.
The CEO identified financing costs and construction cost inflation as the most difficult pressures facing developers, saying Nigeria's double-digit interest rates discourage development and significantly reduce the pace of projects. He called on financial institutions and policymakers to look more closely at how capital is made available to credible developers, including single-digit interest rates for developers building affordable housing, tax incentives tied to unit price caps, and a faster, more predictable approvals process.
Looking ahead five to ten years, Johnson said he expects core Lagos island hubs including Ikoyi, Victoria Island, Oniru and Lekki Phase 1 to transition almost fully into high-rise districts as institutional investment grows, with the market moving beyond conventional gated-compound designs toward more distinctive, design-focused projects. He argued that going vertical must be part of the solution to Lagos' housing deficit, and that the government has an important role in creating an enabling environment for responsible developers.