The 10-Day Occupancy Benchmark
A short-let apartment in Lagos now needs to record at least 10 booked days every month to remain commercially viable. Moyosore Badejo, the Chief Operating Officer of Deity Homes Int’l Limited, disclosed this on August 5, 2026, noting that operators are contending with rising competition.
The influx of new investors has intensified competition over the past few years. This has forced many operators to depend on shorter bookings of one or two days to meet occupancy targets that were previously easier to achieve.
Badejo explained that the market has changed significantly. Previously, there were eight apartments for 10 clients, but the market now has 20 apartments competing for those same 10 clients. This surge in supply was largely driven by the attention the sector received during the Detty December travel boom.
Cost Pressures and Lease Models
The changing market has made profitability more difficult for operators who rent apartments on conventional one-year leases for short-let purposes. These operators must first recover their annual rent before making any profit.
In contrast, operators on long-term lease arrangements or those who own the properties have greater flexibility in pricing. They are not under the same pressure to recover annual rental costs.
Electricity remains one of the biggest operating cost considerations, particularly for operators depending on diesel generators due to unreliable public power supply. Other recurring expenses like internet subscriptions, Pay TV services, housekeeping, and cleaning supplies remain relatively manageable.
Distribution Channels and Market Evolution
Badejo stressed the importance of online booking platforms such as Airbnb and Booking.com. He advised property owners to list their apartments directly rather than relying solely on agents, who can significantly increase the advertised price and push guests toward hotels.
This follows a May 2026 report showing that the Lagos short-let market has evolved into a structured segment of the real estate economy. Two-bedroom apartments remain the most sought-after category because they offer a balance between affordability and flexibility.
The market has also faced regulatory and community hurdles. 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.
