Nigeria's real estate market has seen soaring property prices, with brokers' activities in short lets, flipping, and speculative investments adding pressure to an already strained market. Experts have differing opinions on the extent of brokers' influence, with some acknowledging their role in driving prices, while others attribute the increases to higher costs of land, cement, steel, labor, diesel, imported materials, financing, infrastructure, and statutory charges. The highly lucrative market has led to the emergence of a new breed of property brokers who scout undervalued houses and plots, negotiate directly with owners, secure agreements, add their margins, and look for buyers.
Traditional estate agents in Nigeria made money by bringing a willing buyer and seller together for a commission. However, a new model has emerged where brokers acquire properties outright and resell them, or secure control of assets and sell their interests before completing transactions. Some specialize in distressed properties, while others target land in emerging locations, off-plan apartments, or houses that can be refurbished and repositioned. The model is straightforward: acquire or control an asset at one price and exit at a higher one. This has led to a chain of mark-ups without any corresponding improvement in the property.
The transformation is partly driven by the returns available from property appreciation. Under the traditional model, an agent might earn a percentage of a N100 million transaction. Under the new model, a broker who acquires the same property for N85 million and resells it for N100 million could make N15 million before transaction and holding costs. The incentive is therefore not just to close transactions, but to identify assets that can be bought cheaply, controlled, and resold at a higher price. This distinction is becoming important in Lagos, where property values have risen sharply in several locations.
According to the 2026 Lagos Real Estate Industry Report by Agusto & Company, land prices within five kilometers of the Lekki-Epe corridor rose by 25 to 40 percent between the first quarter of 2025 and the first quarter of 2026. In Ibeju-Lekki, land prices increased from about N15 million per plot in 2024 to as much as N35 million in 2026. In some areas, the increase has been more dramatic, with land values in the Bluewater-Okunde zone rising from about N329,000 per square meter in 2021 to between N2.5 million and N2.8 million in 2026, representing an increase of 660 to 751 percent.
The growth has been linked to major infrastructure and investment projects around the coastline. Such appreciation attracts speculators, and each transaction can become a reference point for the next asking price. A homeowner may be willing to sell for N100 million, for instance, while an intermediary negotiates the price down to N90 million and resells at N105 million or N110 million. The next buyer may then regard the higher figure as evidence of the property's market value. This is particularly problematic because reliable transaction-price data remain limited.
Short-let apartments have added another dimension to these pressures, particularly in Lagos. The Lagos short-let market generated an estimated N281.03 billion in revenue in 2025, according to the Lagos Short-let Market Report 2025 by Edala Development. Based on 5,806 listings, the report projects revenue of about N285.5 billion for 2026 and found that short-lets can generate returns three to six times higher than conventional residential leases. Instead of waiting for annual rent, an investor can furnish an apartment and market it on a nightly or weekly basis.
Registered estate agents have differing views on the matter. Vice Chairman, International, Association of Estate Agents in Nigeria (AEAN), Dr. Adeniyi Tinubu, said brokers contribute to Lagos' rapid property-price increases, but are better described as "price amplifiers" than price-setters. He said land scarcity, inflation, and exchange-rate pressures remain the underlying forces. "Property brokers, flippers, and speculative investors are not simply passive observers of Lagos' property boom."
Key points
- Brokers' activities in Nigeria's real estate market are driving up property prices.
- The emergence of a new breed of property brokers has led to a chain of mark-ups without any corresponding improvement in the property.
- Reliable transaction-price data remain limited, making it difficult to track the impact of brokers' activities on property prices.
