Lagos Office Market Booms: 10 New Complexes to Add 95,000 sqm of Prime Space
Lagos is set to add nearly 95,000 sqm of new prime office space by 2027 across 10 major developments. A new Knight Frank report details the projects, high occupancy rates, and why Lagos is Africa’s priciest office city.
LAGOS, NIGERIA – Lagos’s skyline is set for a dramatic transformation as the city is slated to add 94,931 square metres of new prime office space between 2025 and 2027. According to a new report from global real estate consultancy Knight Frank, this massive expansion will be delivered through ten new high-grade office complexes currently under development, solidifying the city’s status as a top-tier commercial hub in Africa.
The Knight Frank Lagos Market Update H2 2024 reveals that the bulk of this new supply, approximately 77,570 square metres, is scheduled for completion in 2025. An additional 17,361 square metres will come online by 2027, catering to the robust demand for premium office environments from multinational corporations and leading local businesses.
A Development Pipeline Dominated by Ikoyi and Victoria Island
The new wave of development is heavily concentrated in Lagos’s most prestigious commercial districts, with Ikoyi leading the charge. Victoria Island will host the single largest project, while Ikeja will also see a significant addition.
Ikoyi’s Expanding Skyline:
Dangote Industries HQ: 17,000 sqm
Ulesh Ikoyi: 16,390 sqm
The Pantheon: 8,160 sqm (Completed in H1 2025)
Oasis Plaza: 3,000 sqm
Roseworth: 1,680 sqm
IoD House: 3,340 sqm
The Rubicon: 9,361 sqm (Due 2027)
Victoria Island and Ikeja Additions:
Harbour Point Towers (Victoria Island): 20,000 sqm (The largest single project, due 2025)
RCO Court Tower (Victoria Island): 8,000 sqm (Due 2027)
The Phoenix (Ikeja): 8,000 sqm (Completed in H1 2025)
Despite New Supply, Occupancy Rates Remain Strong
Even with the impending influx of new office space, demand in Lagos’s prime market remains exceptionally strong. Knight Frank’s data shows that occupancy rates have strengthened, indicating that the market is readily absorbing the new supply.
In Ikoyi, the prime occupancy rate rose from 84% in the second half of 2024 to an impressive 91% in the first half of 2025. Across the entire Lagos prime market, occupancy improved from 65% to 73% during the same period, showcasing a healthy and growing demand for high-quality office environments.
Lagos Retains Crown as Africa’s Most Expensive Office City
The strong demand is reflected in rental values, with Lagos ranking as the most expensive city for prime office rents in Africa. According to Knight Frank’s Africa Office Market Dashboard, prime rents in Lagos stood at $55 per square metre per month in the first half of 2025.
This places Lagos ahead of other major African cities, including:
Abuja, Nigeria ($46/sqm)
Cairo, Egypt ($37/sqm)
Lusaka, Zambia ($18/sqm)
Interestingly, prime rents in Lagos softened slightly from $56 per square metre in H1 2024. Knight Frank attributes this to a strategic decision by landlords to prioritize high occupancy levels and tenant stability over aggressive rent increases, a sign of a maturing real estate market.
The Future of Work: Hybrid Models and the ‘Flight to Quality’
The report also sheds light on evolving workplace trends. The adoption of hybrid work models has increased, with 31% of businesses in Lagos now offering a combination of remote and in-office work arrangements. However, the traditional five-day office week remains dominant, with 55% of companies still requiring full on-site attendance.
This dynamic is fueling a “flight to quality” across the continent. Companies are increasingly seeking out Grade A and ESG-compliant offices that offer modern infrastructure, flexible layouts, and amenities that support productivity and collaboration. These premium buildings consistently outperform older, secondary stock in occupancy, rents, and overall tenant preference, creating a widening gap in the commercial real estate market.
In conclusion, the Lagos office market is characterized by robust health and a clear forward trajectory. The significant pipeline of new, high-quality developments is meeting a strong and growing demand, ensuring the city will continue to be a prime destination for business and investment in Africa for years to come.
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