Edala

As Nigeria’s urban landscape evolves and digital trends reshape consumer behaviour, the real estate sector is witnessing a major shift: the rise of short-term rentals ("short lets") as the next-generation investment strategy. Once viewed as a niche, short lets are now emerging as the most lucrative rental model, outperforming traditional annual leases in many prime markets.

This article dives into data-backed insights comparing short lets to annual rentals, showing why smart investors are increasingly favouring the short-term model in today’s economy.

The Case for Short Lets: ROI That Outpaces Traditional Rentals

1. Short Lets Deliver Superior Returns in High-Demand Locations

Research shows that the Lagos short let market estimated a total revenue of N263.4 billion in 2024 due to Lagos strategic positioning as a business & leisure hub, influx of domestic & international events, and the rising popularity of remote work and digital nomadism (Edala,2025). Unlike annual rents, typically fixed for a year, short lets rates can be adjusted in real-time, maximizing profits during high seasons particularly like the detty December festivity.

2. Consumer Behaviour Is Changing And Short Lets Fit the Trend

Digital platforms like Airbnb, Booking.com, social media marketing and local alternatives have fuelled growing demand for flexible, furnished apartments. Today’s renters, especially digital nomads, remote workers, tourists, expatriates and business travellers, want short-term convenience over long-term contracts.

This cultural shift aligns perfectly with the short let model, allowing landlords to tap into a younger, mobile, and higher-spending demographic that traditional rentals can’t access.

3. High Occupancy Is Now Easier to Achieve with Technology

Concerns about inconsistent occupancy are becoming outdated. Thanks to smarter pricing tools and digital booking platforms, top-performing short lets in Lagos now maintain occupancy rates of up to 70% during peak periods . With the right management strategy, even off-peak months can be optimized through promotions and flexible booking windows.

Why Short Lets Are the Future

Short lets are not just a trend, they’re a response to modern lifestyle demands, technological disruption, and investor appetite for higher, faster returns. In today’s urban Nigeria, especially in high-density hubs, short lets offer investors a chance to maximize ROI, build brandable rental assets, and enjoy agile cash flows that annual rentals cannot match.

If you're an investor ready to scale smartly in 2025 and beyond, the short let might be your golden opportunity.