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A short-let apartment in Lagos now needs to record at least 10 booked days every month to remain commercially viable.

This is according to the Chief Operating Officer of Deity Homes Int’l Limited, Moyosore Badejo, who noted that operators are now contending with rising competition in the market.

Badejo disclosed this in an exclusive chat with Nairametrics, where he spoke about the changing dynamics of the Lagos short-let market, including occupancy trends, pricing, profitability, and the growing supply of apartments across the city.

He said the influx of new investors into the sector has intensified competition over the past few years, forcing many operators to depend on shorter bookings to meet occupancy targets that were previously easier to achieve.

What Moyosore Badejo is saying

Badejo said a monthly occupancy of about 10 booked days has become the benchmark for determining whether a short-let apartment is performing well in Lagos.

According to him, operators can no longer rely on extended stays to sustain their businesses because such bookings have become less frequent in an increasingly competitive market.

• “In the Lagos short-let market, an occupancy rate of about 10 days a month means an apartment is performing well. But business has been slow lately, and some operators struggle to reach that mark. Longer stays are not always available, so we rely on one- or two-day bookings to build up occupancy and meet our monthly targets,” Badejo said.

He explained that the market has changed significantly from what it was just a few years ago, when there were fewer apartments competing for guests.

• “It is not like before when you had 10 clients and eight apartments, so eight people would get the apartments. But now, we have 20 apartments and 10 clients. That is the issue we are currently facing,” he added.

Badejo attributed the surge in supply to the attention the sector received during the Detty December travel boom, saying reports of strong earnings encouraged many investors to enter the business.

How operators are adapting

He noted that while the market continues to attract demand, particularly from Nigerians in the diaspora, operators now have to compete much harder to secure bookings.

• “Most of our long bookings still come from Nigerians in the diaspora because they usually stay with their families for extended periods. Local guests mostly book for weddings, holidays, or other short visits.”

Badejo added that the changing market has made profitability more difficult for operators who rent apartments on the conventional one-year lease model for short-let purposes.

He explained that these operators must first recover their annual rent before making any profit, making it harder to compete in an increasingly crowded market. In contrast, operators on long-term lease arrangements or those who own the properties they use as short-lets have greater flexibility in pricing because they are not under the same pressure to recover annual rental costs.

He also said electricity remains one of the biggest operating cost considerations, particularly for operators in areas with unreliable public power supply who depend on diesel generators, while recurring expenses such as internet subscriptions, Pay TV services, housekeeping, and cleaning supplies are relatively manageable.

Badejo further stressed the importance of online booking platforms such as Airbnb and Booking.com, advising property owners to list their apartments directly rather than relying solely on agents. According to him, multiple agents can significantly increase the advertised price of a property, making it less competitive and potentially pushing guests toward hotels instead.

What you should know

Nairametrics reported in May 2026 that Lagos’ short-let market has evolved into a more structured segment of the city’s real estate economy, with pricing increasingly shaped by occupancy levels, operating costs, location, and changing guest expectations.

• The market has moved beyond informal rental arrangements into a hospitality-driven business where operators increasingly compete on occupancy efficiency, service quality, and cost management rather than relying solely on nightly rates.
• Two-bedroom apartments remain the most sought-after category because they offer a balance between affordability and flexibility for business travellers, leisure guests, and families.
• Increased investor interest has significantly expanded the supply of short-let apartments across Lagos, intensifying competition in key residential corridors.

Operators are investing more in furnishing quality, backup power solutions, and hospitality-style amenities to improve guest experience and sustain occupancy.

In February 2026, the Banana Island Property Owners and Residents Association prohibited short-let and Airbnb-style rentals within the estate over security and privacy concerns.