The Rise and Fall of Nigeria’s Shortlet Boom
A few years ago, the shortlet rental business in Lagos and Abuja seemed like the ultimate goldmine. With tourists, business travelers, and Nigerians in the diaspora flooding into the country, demand for stylish, fully furnished apartments skyrocketed. Investors jumped in, converting properties into Airbnbs, promising guests a premium home-away-from-home experience.
But fast forward to today, and murmurs of a declining shortlet market are getting louder. Is the shortlet business in Lagos and Abuja dying, or is it simply evolving?
From Goldmine to Gamble: The Shifting Landscape of Shortlets
It started as a no-brainer: buy an apartment in Lekki, furnish it stylishly, list it on Airbnb, and watch the dollars roll in. For a while, it worked—properties that would otherwise sit empty were bringing in $100 to $200 per night. Every real estate enthusiast suddenly had “Shortlet Investor” in their Instagram bio.
Then, things changed. Bookings started slowing down. Guests started negotiating aggressively. Suddenly, the once-booming business model wasn’t as easy as it seemed. Investors who had borrowed heavily to buy apartments were now struggling to cover their costs. Some were forced to convert their units back into long-term rentals, while others watched their high-end apartments sit vacant for weeks.
So, what went wrong? And more importantly, is there still a way to make money in Nigeria’s shortlet market?
The Challenges Facing the Shortlet Industry
1. Market Saturation & Fierce Competition
In 2019-2021, the demand for Airbnb-style rentals surged, leading to an oversupply of shortlet apartments. Now, every other high-end apartment in Lekki, Victoria Island, and Maitama is a shortlet. With more supply than demand, competition is brutal. Many hosts are struggling to get consistent bookings, and the once-exciting returns have thinned out.
Some areas now have more shortlets than actual residents! If your unit isn’t offering something extra, it’s drowning in a sea of similar listings.
2. The Pricing War: Profits are Shrinking
Once upon a time, a luxurious 2-bedroom in Ikoyi could command $150 per night without question. Today? The same apartment might struggle to get $80. Guests now have a buffet of options and are negotiating harder than ever. Hosts who were once enjoying a steady cash flow are now forced to slash their rates just to stay competitive.
The math isn’t mathing for many investors—how do you maintain a luxury apartment, pay service charges, and still turn a profit at these rates?
3. Economic Hardship & Declining Travel
With Nigeria’s economic climate tightening, fewer people are willing to spend money on short-term luxury stays. Rising flight costs, visa restrictions, and global inflation have slowed down travel. Even Nigerians in the diaspora, once a reliable customer base, are being more strategic about when they visit and how much they spend.
In the past, Christmas season meant fully booked shortlets. Now, even during peak periods, some apartments remain empty.
4. Bad Guests & Property Damage
If you’ve ever spoken to a shortlet owner, they’ll tell you the horror stories. Guests throwing wild parties, ruining expensive furniture, sneaking in extra people, and leaving apartments in a disastrous state. Some hosts have had to spend millions on repairs after just a few months of operation.
And let’s not forget the infamous “one-night ballers”—guests who book for a night, trash the place, and disappear. With weak guest verification systems, many hosts are left holding the bag.
5. Stricter Estate Regulations & Bans
Around the world, cities like New York and London have imposed strict rules on short-term rentals. While Lagos and Abuja don’t have city-wide restrictions yet, many high-end estates are cracking down. Some estates now outright ban shortlets, citing security concerns and noise complaints from permanent residents.
For investors who bought apartments specifically for Airbnb, this can be devastating—what do you do when your estate suddenly says shortlets are no longer allowed?
So, Is There Still Money in the Shortlet Business?
Despite the obstacles, the shortlet industry isn’t dead—it’s just more selective. The gold rush is over, but those who adapt can still make a killing.
How to Win in Nigeria’s Shortlet Market in 2025
✅ Target the Right Clients – Luxury travelers, corporate clients, and diplomats still value high-quality stays. Instead of mass marketing, focus on premium clientele who pay for value, not just cheap deals.
✅ Upgrade Your Guest Experience – The best hosts don’t just provide a bed; they offer an experience. Think airport pickups, personal chefs, concierge services, and 24/7 customer support. The more exclusive your service, the more people are willing to pay.
✅ Use Direct Marketing – Depending solely on Airbnb and Booking.com is risky. Build an independent brand via Instagram, WhatsApp, and Google Ads. Many successful hosts now get 50% of their bookings directly from referrals and social media.
✅ Unique Properties Win – A generic apartment in Lekki Phase 1? Meh. But a beachfront villa, a penthouse with a skyline view, or a smart home with automated features? That’s where the money is. People pay for unique experiences, not just another apartment.
✅ Think Long-Term Rentals Over Nightly Stays – Many investors are shifting towards monthly and quarterly rentals instead of nightly stays. Long-term guests mean fewer vacancies, lower maintenance, and more reliable income.
The Future of Airbnb in Lagos & Abuja
The shortlet business in Nigeria isn’t dead—it’s just maturing. The days of making easy money from random listings are over. But investors who innovate, refine their offerings, and target the right clients will still thrive.
If you’re serious about making money in real estate, understanding market shifts is key. Those who evolve with the times will continue to profit, while those who refuse to adapt will be left behind.
Thinking about getting into the shortlet business or revamping your investment strategy? OrionSky connects property owners with high-value tenants and offers expert real estate investment guidance.
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