The Future of Nigeria’s Shortlet Market: Trends to Watch in 2025 and Beyond

“Shortlet” is one of the biggest buzzwords in the Nigerian real estate market today. And it is no surprise because the shortlet business in Nigeria is booming, with sources placing the total revenue for 2024 at over ₦500 billion ($325 million).

The space has also become extremely competitive with many property managers turning to shorter leases to make more revenue from their existing portfolio. At Reeka, we work with some of the top property managers across Nigeria in the shortlet space. We support managers with properties from Eko Atlantic to Ebute Metta and have come up with some of the top trends to watch in the shortlet industry across Nigeria.

1. Outside of the Lagos Hype!

According to a report by Mr Joseph Oloyede at Edala Homes, Lagos alone accounted for ₦260 billion ($170 million) of Nigeria’s Shortlet space, with submarkets like Ikoyi, Eko Atlantic, Lekki, and VI, serving as popular hotspots. While Lagos remains the largest shortlet market, other Nigerian cities are rapidly catching up, such as Abuja, Ibadan, and Port Harcourt. Abuja, in particular, has seen the total number of active listings increase 56% year-over-year, according to real estate data provider AirDNA. In addition, locations outside of the core Lagos areas, such as Lakowe Lakes and Ilashe, are becoming popular destinations. Big players are betting on these markets on the outskirts of town, with Ilashe getting a Hilton Curio Collection property set to open in late 2025. This new property is likely to further elevate the development of shortlets and beach resorts on this island off the coast of central Lagos. One example of a creative location strategy is the approach Yusf Adebayo is taking with his company Alejo. Alejo is rooted in Yoruba culture but focused on delivering a quality shortlet experience in all states with a notable tourist attraction. He started with Ijebu Ode, Ogun state. Ijebu-Ode is home of the vibrant Ojude Oba Festival, a major cultural event attracting thousands annually. This colorful ancient festival has gone viral on social media over the past few years, however, there are limited lodging options, and Alejo is stepping in to fill this market demand. When I asked Yusuf why he went to Ijebu-ode, he said simply “because no one else has”, he sees a blue ocean and looks forward to setting the standard for hospitality during the festival and beyond. Whether it is Ogun state or off the shores of Lagos Island, one thing is clear: finding a unique positioning for your property will be helpful, and going outside of the known markets in Lagos might help you grow your clientele and bring your expertise to a less crowded playing field.

2. Beyond Dirty December 🥳

The rise of Dirty December in Nigeria is old news at this point. The festive period marks the busiest period for Nigeria’s hospitality industry, with over 1.2 million international and domestic tourists coming to Lagos alone. However, this statistic does not tell the whole story. There are still 11 other great months during the year! Professional property managers in the Reeka network also reported strong demand around popular holidays and local events such as Valentine's day, Eid Celebrations, and university convocations. Unlike many other markets, Nigeria’s shortlet demand is fueled heavily by domestic tourism. Local residents use shortlets for events like bridal showers, event launches, and the increasingly popular staycation. It has been a difficult year for many Nigerians, with high inflation and currency devaluation forcing many to think locally for lower-cost vacations and ways to celebrate life milestones. Although Dirty December will always drive high occupancy and premium rates, tapping into other holidays and local events can help boost bookings and revenue year-round.

3. Technology is Your Edge 🗡️

Managing shortlets requires more daily effort compared to long-term leases. There are often daily rentals, cleanings, inspections, and agents to coordinate. Without technology, many owners are lost on how to market and manage their properties. Platforms like Reeka help property managers use technology to work smarter and not harder. We give property managers an all-in-one view of their operations and are the only real estate technology platform in Nigeria that connects to sites like Airbnb and Booking.com. Popular sites like Airbnb are great when marketing your property to international clients, but many owners also use local agents to improve distribution and introduce new clients to their properties. Reeka gives you one dashboard to manage both Airbnb and agent bookings as well as accept local and international payments directly in one system. Rather than shying away from using technology, smart property owners and managers will embrace technology so they can reach more guests and reduce their rental headaches. If you want to see how top managers are doing it, check out our website and book a demo!

4. Amenities Galore - The Rise of Purpose-Built Properties and Luxury Facilities

In Nigeria, shortlets were previously a niche industry, with many early adopters setting up mom-and-pop operations to fill market demand unmet by hotels. Now, shortlets are becoming a major investment opportunity, attractive to both local and international property owners. As more investors enter the market for shortlets, new business models are emerging. There are now entire buildings created for the purpose of running shortlet, with developers opting for smaller apartments such as studios and 1-bedrooms. These new properties often include Instagram-worthy amenities designed to attract guests including large pools, high-quality gyms, or serene outdoor gardens. In addition to investors pushing these luxury amenities, there is also a pull from guests who expect features like 24/7 light, wifi, and even Netflix or PS5s. Like one guest said to me, “Why would I trek and leave my own house to be in the same situation I am running from at home”. Luxury does not always mean expensive, and many guests are just looking for reliable basics that help them escape the stress of Lagos and enjoy a carefree staycation weekend. In the world of “sachetization”, shortlets serve as a cheaper way to access the good life with luxury amenities and comfort. Do not fall behind and check out our list of top 10 amenities we see in shortlet apartments, so that your property is up to date.

The real estate and shortlet industry in Nigeria are still in the early stages of development, and we’re closely monitoring the market as it evolves. Follow our blog here to stay up to date on key trends across the shortlet industry.