Login Register
feel free to call 09056000005

Short-Let Apartments in Nigerian Cities: A Growing Trend Driven by Travel Expenditure and Budget-Friendly Accommodations

Short-let apartments in Nigerian cities are gaining popularity due to the rising expenditure on travel and tourism, as well as travelers' inclination towards budget-friendly accommodations. These properties, considered as alternatives to hotels, can be rented out for weeks to months and even a year, depending on demand. The demand for short-let apartments has been on the rise, with an estimated 200% growth as daily demand increases compared to the residential and hospitality markets, as revealed by The Guardian investigation.
 
One of the main attractions of the short-let apartment sector is the comfort, aesthetics, and luxury facilities offered. These apartments tend to be larger than standard hotel rooms, equipped with facilities such as kitchens, internet, 24-hour light and water, air conditioning, security, fully furnished, access to Digital Satellite Television (DSTV), Closed Circuit Television for security, parking spaces, and washer and dryer.
 
The global short-let rental market is valued at $99.38 billion as of 2021 and is expected to grow at a Compound Annual Growth Rate (CAGR) of 11.1% till 2030. The increasing adoption of short-let apartments in Nigeria can be attributed to the strong income profile and ease of access for investors, operators, and tenants.
 
Short-let apartments in Nigeria leveraged the COVID-19 lockdown period when most hotels were out of business and had to close their doors to occupants, to record breakthroughs. There has been ongoing development of short-let properties in major Nigerian cities such as Abuja, Port Harcourt, Ibadan, Lagos, and others. Lagos, in particular, has seen over 2,000 short-let projects championed by various developers, with the Lagos short-let market growing by 263% over the past three years, as reported by Pan-African real estate data firm, EstateIntel, in a report titled "Boom or Bust? Lagos Short-let Market". The growth in the market is mainly driven by rising demand for long and short stays in apartments.
 
Several reasons have been adduced for the performance of the short-let market in Nigeria, including it serving as an alternative to traditional tenants, a strong income profile for investors, patronage by the younger demographic as a cheaper alternative to hotels, and the "diaspora" effect.
 
The emergence of the short-let market is a deeply embedded trend in the Lagos residential market, essentially correcting the market that was not accustomed to monthly rentals. The low barriers to entry for people to furnish and deliver apartments on a daily and monthly basis have brought out pent-up demand that was underserved by a rigid yearly rental payment market.
 
With the rising demand in the short-let space, there has been an increase in supply in the market. Short-let apartments have emerged as a strong performer, with Nigerians in the diaspora being a key driver of the seasonal nature of short-let demand, which sees occupancy levels peak during major holidays and records lower levels in off-peak seasons.
 
According to Tilda Mwai, Research and Insights lead at EstateIntel, "The sheer amount of interest we have seen in the space over the past year points to potential market saturation. Even though we are confident in the opportunities the short-let market has to offer, we'd encourage new players looking to enter to take time and ensure that their projects are differentiated or can remain competitive in a high supply environment."
 
Findings show that Ikoyi, Victoria Island, Lekki Phase 1, and Ikeja have emerged as the top short-let hubs in Lagos, with Lekki Phase 1 maintaining considerably higher occupancy levels at 80%

Similar Topics

Event Set to Celebrate Managers Who Shape Careers and Drive Organizational Growth   Business...

4 days ago Read More

Global Leaders to Converge in Lagos for Landmark Event Driving Urban Innovation and...

5 days ago Read More

In a bold move to redefine affordable luxury housing, Nigerian real estate giant Gtext Holdings has...

13 days ago Read More

Industry Experts Urge Anti-Corruption Measures, Innovative Financing to Address Crisis By: Oche...

18 days ago Read More

LAGOS, NIGERIA – Global real estate consultancy Knight Frank and UK developer Mount Anvil...

20 days ago Read More

By Oche Onum Lagos, Nigeria As Nigeria’s real estate sector braces for 2025, rapid...

24 days ago Read More

By Oche Onum Abuja, Nigeria In a landmark move to combat climate vulnerabilities in urban...

26 days ago Read More

LAGOS, NIGERIA The Federal Government announced plans Wednesday to establish a Real Estate...

a month ago Read More

According to The Guardian's investigation, 70% of Nigerian states rely on manual land...

a month ago Read More

What is the Initiative? The Federal Government of Nigeria has unveiled an N100 billion private...

a month ago Read More

Abuja, Nigeria’s gleaming administrative capital, has long symbolized hope for migrants...

a month ago Read More

Abuja, Nigeria The Federal Housing Authority (FHA) has suspended all ongoing construction projects...

a month ago Read More

Lagos, Nigeria  Amid Nigeria’s escalating housing affordability crisis, real estate...

a month ago Read More

Renowned Nigerian gospel artist Mercy Chinwo has broken her silence in an emotional video...

a month ago Read More

The Nigerian real estate market is projected to hit $2.25 trillion by the end of 2025, according to...

a month ago Read More

Nigeria’s Minister of Housing and Urban Development, Ahmed Dangiwa, has called on...

a month ago Read More

Affordable Housing and Luxury Properties Set to Propel Nigeria's Real Estate Market Over the Next...

2 months ago Read More

Hope for improved housing supply in Nigeria may remain unfulfilled, as the 2025 fiscal budget...

2 months ago Read More

Nigeria commemorated its annual Armed Forces Remembrance Day on January 15, honoring military...

2 months ago Read More

Nigeria’s ongoing GDP and CPI rebasing reveal real estate has overtaken oil and gas as the...

2 months ago Read More