In the second half of 2025, rent for Ikoyi office spaces jumped to $705 per square metre, the highest among the three Lagos markets.
The office property sector is witnessing a rebound, with gains across all segments driven by economic recovery from monetary tightening, fiscal reforms, and exchange rate liberalisation.
The data, contained in Troloppe Property Services’ H2 2025 Lagos City Market Report, released Monday in Lagos, offers insights into rents, occupancy rates, and pricing trends across three market segments, guiding investment and business decisions with a 2026 market outlook.
Ikoyi’s property market in Lagos is a hotspot for luxury real estate, with average home prices around ₦1.7 billion. Prices span from N50 million to ₦12 billion, offering a variety of options from houses and apartments to land and commercial spaces. Demand remains strong, fueled by wealthy buyers and investors chasing top-quality developments. In 2025, the market’s strength is backed by verified listings and a shifting buyer profile. Ikoyi properties are prized for their prestige, safety, and closeness to high-end amenities.
The report segmented the Lagos office property market into Ikoyi, Victoria Island, and Ikeja, highlighting growth spurred by the Tinubu Administration’s policies, particularly evident in the market’s expansion during the second half of 2025.
The Troloppe Market Report indicates that the Ikoyi prime office market remained stable in H2 2025, with slight improvements in existing stock levels and gradual absorption. This led to a total prime office space of approximately 157,921 square metres (sqm), with a further 42,300 sqm under development.
“A key milestone during this period was the delivery of the Pantheon, a grade A office development with an estimated 1,140sqm of office space for sale’, the report stated.
The Pantheon in Ikoyi, Lagos, is a modern commercial development by UACL Properties Limited, located in one of the city’s most prestigious neighborhoods. It features eight floors, offering a total size of 8,160 square meters that blend contemporary and international design aesthetics. The building is part of a luxury real estate landscape, complementing nearby high-end residential developments. While primarily a commercial hub, it also showcases cultural significance through its art displays, including artifacts like ancient royal crowns and carved ivory from across Nigeria. Its architectural style and location position it as a key landmark in Lagos’s evolving urban skyline.
Victoria Island’s market demonstrated resilience in H2 2025 with stable occupancy. Trollope estimates the submarket’s total lettable area at 392,853 sqm, driven by demand from the oil and gas and financial services sectors.
Troloppe in the report noted that Ikeja’s status as a major commercial hub, coupled with its proximity to airports, the Alausa business district, transport networks, and industrial zones, helped the property market to attract technology and fintech companies, which made the area their preferred location.
Although the Ikeja office market is dominated by ageing and downgraded buildings, Troloppe in the report stated that properties like the 10,000 sqm Phoenix make the area more appealing.
“The Phoenix, a grade A office development on Mobolaji Bank Anthony, delivered in Q2 2025, has been the game changer for the Ikeja office property market, driving up the occupancy rate to 32.02 per cent within the short period of its existence, and attracting multinational tenants like Tetra Pak, Biersdorf (Nivea), and Merck Pharmaceuticals”.
With the fresh appeal of new properties in the area, the report noted that office occupancy in Ikeja reached 82 per cent by late 2025, driven by strong demand from financial services, technology, FCMG, and aviation sectors.
Consistent demand in Ikeja’s office property market drove a slight increase in rental prices, with prime office rents rising from $190 per sqm per annum in the first half of 2025 to $205 per sqm in the second half.
According to Troloppe, Ikoyi’s grade A and B office market experienced a combined occupancy rate of 79 per cent, with grade B offices showing higher occupancy as vacant grade A spaces remained unfilled.
“Grade A office rents rose from $650 to $705 per sqm per annum between H1 and H2 2025, reflecting renewed market confidence, stable supply, and flexible lease terms”, noted the report.
The Troloppe report showed that Victoria Island’s office market is dominated by Grade A and B spaces due to their cost-effectiveness.
Despite this trend, combined Grade A and B office occupancy slightly decreased to 83 per cent in H2 2025 from 86 per cent in H1 2025, due to lower rents and landlord incentives.
During the period, Trollope reported a 25 per cent increase in Grade A office rents to $595 per sqm per annum in H2 2025.
This report indicates that landlords are strategically adjusting prices to balance continued demand with occupiers’ value-focused negotiations.
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