The Skyrocketing Cost of Premium Space
Despite economic headwinds, Lagos real estate in Ikoyi, Banana Island, and Victoria Island has experienced double-digit price inflation. The cost of building materials, coupled with a flight to safety in hard assets, has driven purchase prices and rental yields to record highs.
The Dollarization of Rent
Landlords are increasingly demanding rent payments in USD or their equivalent Naira rate, creating pressure on corporate tenants. Investors, however, continue to enjoy robust cash flows from premium residential and commercial holdings.