The Best Property Types for Short-Term Rentals in Nigeria

The short-term rental market in Nigeria has seen significant growth over the past few years, driven by increased travel for business, tourism, and digital nomadism.

Platforms like Airbnb and Booking.com have made it easier for property owners to list their properties and attract short-term guests. However, not all properties yield the same results in terms of profitability and occupancy rates.

Choosing the right property type is crucial for success in this competitive industry.

In this article, we will explore the best property types for short-term rentals in Nigeria, highlighting their advantages, target audience, and the best locations to maximize returns.

Whether you are a real estate investor, a homeowner looking to earn extra income, or an entrepreneur venturing into the short-term rental business, this guide will help you make informed decisions.

1. Apartments (Flats & Studio Apartments)

Apartments, including studio apartments and flats, are among the most popular choices for short-term rentals in Nigeria. They are versatile, cost-effective, and appeal to a broad audience.

Why Apartments Are Popular for Short-Term Rentals

• They cater to both business and leisure travellers.
• Easier to maintain compared to larger properties.
• Offer privacy and independence, which hotels often lack.
• Many are located in high-demand urban areas.

Ideal Locations

• Lagos (Victoria Island, Lekki, Ikoyi, Ikeja)
• Abuja (Gwarinpa, Maitama, Wuse)
• Port Harcourt (GRA, Peter Odili Road)

Target Audience

• Business professionals on short-term assignments
• Remote workers and digital nomads
• Couples or solo travelers looking for a comfortable stay

Pros and Cons

Pros:
✔ High demand in major cities
✔ Affordable investment compared to larger properties
✔ Can be listed on multiple platforms to maximize occupancy

Cons:
✘ Competition from other hosts
✘ Requires regular maintenance and cleaning

2. Serviced Apartments

Serviced apartments provide the comfort of a home with hotel-like services, making them highly attractive for short-term stays.

Why Serviced Apartments Are a Top Choice

• Provide hotel-level comfort with added home features.
• Ideal for business travellers and expatriates.
• Offer services like housekeeping, security, and concierge.

Best Locations

• Lagos (Banana Island, Ikoyi, Lekki Phase 1)
• Abuja (Asokoro, Maitama, Jabi)
• Port Harcourt (Old GRA, Trans-Amadi)

Key Amenities to Include

• Fast WiFi and smart TVs
• 24/7 security and power supply
• Cleaning and laundry services
• Fully equipped kitchen and workspaces

Pros:
✔ Higher rental rates compared to standard apartments
✔ Attracts high-net-worth individuals and corporate clients
✔ Consistent demand throughout the year

Cons:
✘ Higher setup and maintenance costs
✘ Requires professional management to maintain quality service

3. Luxury Homes & Villas

Luxury homes and villas cater to high-end clients looking for exclusivity and premium experiences.

Why Invest in Luxury Short-Term Rentals?

• Attracts VIP guests, celebrities, and expatriates.
• High rental income per booking.
• Offers a unique experience that traditional hotels cannot provide.

Best Locations

• Lagos (Banana Island, Eko Atlantic City, Lekki Phase 1)
• Abuja (Maitama, Asokoro)
• Calabar (Tourist destinations)

Essential Features

• Private pools and jacuzzis
• High-end furniture and decor
• Personalized concierge services
• State-of-the-art security systems

Pros:
✔ High profitability per stay
✔ Exclusive clientele means less wear and tear
✔ Prestige associated with luxury rentals

Cons:
✘ Limited target audience
✘ High maintenance costs

4. Duplexes & Townhouses

Duplexes and townhouses are ideal for families and group travellers looking for spacious accommodations.

Benefits of Renting Larger Spaces

• More space for families, corporate retreats, and group vacations.
• Can accommodate multiple guests, increasing revenue potential.
• Offers a home-like environment with added privacy.

Best Locations

• Lagos (Ajah, Lekki Phase 2, Surulere)
• Abuja (Gwarinpa, Wuse)
• Ibadan (Ring Road, Bodija)

Pricing Strategy for Maximizing Profits

• Charge higher rates for weekends and holidays.
• Offer long-term discounts for extended stays.
• Include premium amenities like home theatres and game rooms.

Pros:
✔ Higher rental income per booking
✔ Less frequent turnovers compared to smaller apartments
✔ Attracts long-term and repeat guests

Cons:
✘ Higher initial investment
✘ Requires more upkeep and utilities

5. Shared Spaces & Co-Living Units

Co-living spaces are gaining popularity among young professionals, digital nomads, and budget travellers.

Why Consider Co-Living Spaces?

• Affordable and social alternative to traditional rentals.
• Lower cost of maintenance since tenants share utilities.
• Attracts millennials and Gen Z travellers.

Best Ways to Structure Shared Rentals

• Offer private rooms with shared living spaces.
• Provide community-focused amenities like coworking spaces.
• Implement flexible lease terms.

Pros:
✔ Lower vacancy rates
✔ Generates steady passive income
✔ Appeals to remote workers and young professionals

Cons:
✘ Potential for conflicts among tenants
✘ Requires a strong management system

6. Mini Flats & Bungalows

Mini flats and bungalows are budget-friendly and easy to manage, making them a great option for first-time investors.

Target Audience & Best Locations

• Budget-conscious travellers and students.
• Best in university towns and emerging urban areas.
• Great for suburban areas in Lagos, Abuja, and Ibadan.

Pros:
✔ Low maintenance costs
✔ Steady demand from budget travellers
✔ Easy to rent out long-term if needed

Cons:
✘ Lower rental income compared to larger properties
✘ Limited space and amenities

Conclusion

The short-term rental market in Nigeria offers numerous opportunities for investors and homeowners.

The key to success is selecting the right property type that aligns with market demand, location, and investment goals.

Apartments, serviced apartments, and luxury homes remain top choices for high returns, while mini flats and shared spaces cater to budget-conscious travellers.

If you’re considering entering the short-term rental market, conduct market research, invest in quality furnishing, and stay updated with regulations.

With the right strategy, you can generate a steady stream of income and maximize your investment in Nigeria’s booming real estate industry.