Lagos State plans stricter rules for shortlet rentals, as revenues set to cross N300 billion

• The shortlet manufacture is rapidly increasing successful Nigeria, bringing successful billions of naira arsenic the operators work a marketplace of expatriates and tourists
• A survey by Edala Homes shows that the full gross successful 2024 deed N264 billion, and this sum is acceptable to summation importantly successful 2025
• Amid each of these growths, stakeholders foretell a worsening of the existing lodging crisis, adjacent arsenic Lagos authorities seeks to modulate this emerging sector

Legit.ng writer Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful business reporting crossed integer and mainstream media.

Since 2020, shortlet rentals person gradually accrued successful popularity, particularly successful municipality areas similar Lagos, Port Harcourt, Abuja, and others.

A study shows that much Nigerians are turning to shortlet properties for flexibility successful enactment with their needs.

The ‘Lagos Short-let Market 2024’ study shows that successful 2024, the short-let marketplace successful Lagos State had a full estimated gross of N264 cardinal and is projected to scope N300 cardinal successful 2025.

The Lagos State authorities has precocious taken a large involvement to resoluteness lodging challenges successful the state. Pius Utomi Ekpei, Contributor
Source: Getty Images

The study surveyed 5,806 short-let spot listings successful Lagos state, with astir 78% sourced from AirDNA and the remaining 22% from Edala homes.

According to the report, the maturation successful request for short-let rentals successful Lagos is its strategical positioning arsenic a concern and leisure hub.

The emergence of distant enactment and integer nomadism, arsenic good arsenic the influx recorded during home and planetary events, besides drives the maturation of this emerging assemblage that services tourists, expatriates, concern travellers, and section professionals successful request of flexible but luxurious accommodations.

Lekki leads arsenic short-let homes rake successful N264 billion

The study shows that Lekki Phase I and Lekki Peninsula II pooled successful N94 cardinal and N70 cardinal each during the period.

Ikoyi leads for luxury accommodations with N37.5 cardinal gross successful 2024, and is projected to scope N42 cardinal successful 2025, the PUNCH reports.

Banana Island, with its exclusive and luxurious offerings, besides pooled N11 cardinal successful gross for the play and is expected to transverse N12.4 cardinal successful 2025.

Victoria Island, with a equilibrium betwixt luxury and accessibility, recorded N19.3 cardinal successful 2024 and is projected to transverse N21.6 cardinal successful 2025.

It besides highlights beardown show and continuous maturation successful different areas similar Ikeja, Surulere, and Yaba.

Commenting connected the report, Chief Operating Officer, Edala Homes, Samuel Olatunde, stated that the maturation would beryllium sustained by request from each the submarkets and the increasing gross successful emerging areas.

There are besides seasonal surges, specified arsenic the ‘Detty December’, wherever shortlets spot a spike successful patronage. The Chief Executive Officer of Edala Homes, Temidayo Oloyede, described this play arsenic 1 of the highlights of the 2024 report.

He said:

“Lagos attracted an estimated 1.2 cardinal tourists, with astir 60 per cent being section tourists from the South-East and FCT and 40 per cent being diaspora visitors.”

Statista projects that by the extremity of 2025, abrogation rentals crossed Nigeria volition make up to US$595.60 cardinal successful gross with an yearly maturation complaint of 10.35%, and are expected to scope $883.18 cardinal by 2029.

Lagos State acceptable to tighten regulatory oversight connected shortlets

The Lagos State authorities is besides looking to tighten regulatory oversight successful the emerging short-let industry successful 2025.

The study projects that determination volition beryllium stricter taxation rules and insistence connected transparent fiscal reporting for operators, enforcement of information standards, and instauration of lawsuit verification protocols for information reasons.

Note that the authorities is besides enforcing regulatory oversight implicit the semipermanent rentals by regulating fees and related charges successful the sector.

The authorities has besides launched reporting channels for Lagosians to study existent property agents oregon landlords who effort to exploit them.

Housing situation worsens owed to decreased availability

The study besides shows that spot owners are capitalizing connected the lucrative opportunities successful the sector, and galore are present moving to connection fully-furnished homes for shortlets and ignoring semipermanent rentals.

An property surveyor, Olorunyomi Alatise, referred to the short-let maturation arsenic a disruptive unit with respective unintended consequences.

Lagos State authorities is readying caller rules to usher the shortlet assemblage arsenic the gross surge shows expanding patronage. Photo credit: Luis Boza
Source: Getty Images

He explained that the regular and play rents mean a much unchangeable and importantly higher gross for the spot owners, particularly successful high-demand areas, compared to yearly rents paid by tenants.

He warned;

“The effect is that much lodging units (especially those successful eyebrow areas) are withdrawn from the semipermanent rental excavation and converted into short-term stays, hence, the availability of affordable lodging banal decreases. “Short lets are a bully concern medium, but its maturation needs to beryllium checked to forestall further accent connected the existing lodging affordability challenge.”

Lagosians applaud the government's lodging reforms

In related news, the Lagos authorities authorities has implemented respective lodging reforms, including the motorboat of reporting channels and the connection of monthly oregon quarterly rent payments.

The determination attracted tons of commendations from Lagosians who took to societal media to convey the authorities for heeding their cries.

With the latest reforms, residents can study lodging agents and landlords who effort to extort much fees than are legally permitted.

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Source: Legit.ng