In recent years, the market for short-let serviced accommodation in Nigeria has skyrocketed. The bulk of demand initially came from oil companies, telecommunications companies, and the diplomatic community, in the early 2010s. However, with the rise of Air BnB and a fast growing entertainment industry alongside a growing urban and middle-class population, the demand for short-let apartments among young professionals in Lagos has increased in recent years. According to a Market Watch study, the short-term rental market has risen significantly in recent years and is expected to continue to expand rapidly in the next five years, with a forecast occupancy rate of 70% in 2021. In reality, short-term rentals brought in 30% more income for homeowners/investors than long-term leases in 2018, with a global market worth of $169 billion.

According to African Futures Papers, by 2035, close to 30 million people could live in Lagos, turning Nigeria’s commercial hub into the largest megacity on the continent. At the same time, more than a third of Africa’s urban population is expected to live in West Africa. Nigeria’s Lagos city is estimated to become one of the fastest-growing cities in the next twelve years with Lagos becoming a megacity by 2030. This presents a great opportunity for investors.

According to interviews with local property magazine editors, serviced apartment ads now account for between 5% and 10% of all classified properties for sale, up from 1% in 2009.

According to a study by Alitheia Capital, the short-stay industry is also rising as commercial property development funding becomes scarce. According to the study, short-term apartments are a good investment. “The demand for above-standard hotel rooms and short-term accommodation in and around Lagos is estimated to be around 6,000 rooms... increasing at [an average of] 15% per annum,” according to the study.

“People tend to prefer short letting to hotels, particularly those outside the country because of its unique features,” Etoniru, a fellow of the Nigerian Institution of Estate Surveyors and Valuers, said. In reality, it was less expensive in short-term rentals than in popular hotels. A one-bedroom in Shonibare estate, for example, costs ₦30,000 per day, a two-bedroom costs ₦45,000, and a three-bedroom costs ₦70,000 per day, according to the Guardian. A three bedroom in Ikeja GRA costs $150 per day, a three bedroom in Victoria Island costs ₦2million a month, and a duplex costs ₦200,000 per day.

A luxuriously furnished and serviced three-bedroom penthouse with all rooms en-suite is available for ₦90,000 per day at Maryland, Ikeja, Lagos. A fully furnished super luxury two-bedroom short-let apartment in Maitama, Abuja is also available for ₦50,000.

A short-let rental apartment obviously has a higher value appreciation since the rental value can be used as resources for other enterprises in a short period of time while turnover increases.