50% of investors buying an apartment in Lagos have one goal in mind, that’s shortlet, so if this trend continues, is a housing doom coming?

Nowadays, the buzz in the real estate market is shortlet apartments, several Nigerians abroad finally have a valid real to buy a property in Lagos.
Basically, the selling point for investors is that now they have a place they can stay when they visit Lagos, while they are away, they can comfortably earn by short letting to occupants per day. However, in the past few months, shortlet apartments in Lagos have risen, it’s no more a side hustle or hobby, it’s now a thriving industry.

Moreso, a whole block of 9 units to 20 units condos and apartments, in places like Lekki 1, Victoria Island, Ikeja GRA, can be sold, and all buyers are not letting out any unit, they all plan to use it as shortlet apartment. In contrast to annual rent practiced in Lagos, shortlet apartments charge per day and at a higher rate. Hence, the return or profit to investors have been a huge factor in switching from rent to shortlet.

Despite the higher return and the hype, there is a growing concern. With the rise in shortlet apartment in Lagos, there will be less houses for the everyday Lagosians who work here and have families here to stay. Therefore, Lagosians with families here will be unable to afford to either buy or rent in certain highbrow areas in Lagos, because the majority of the houses there are for short stay occupants.