Waking up with the cool breeze from the ocean and an amazing skyline view is what most Nigerians and foreign investors visualise when buying waterfront properties in Nigeria.

From Banana Island to Lekki Phase 1, waterfront real estate is one of the hottest tickets in Nigeria’s luxury market. But behind the glitz and glamour lies a growing concern: flooding, erosion, and legal issues that could turn your dream home into a risky liability.

In this guide, we will explore the reality behind waterfront property in Nigeria with Lagos in view.  For example, is it a smart real estate investment in Lagos? Or are the environmental risks just too high?

What Are Waterfront Properties?

Waterfront properties, sometimes called beach houses, are real estate assets located along natural water bodies such as the ocean, lagoons, rivers, or lakes. In Nigeria, most of these properties are found:

• Along the Atlantic coastline (Lagos, Port Harcourt, Calabar)
• Near lagoons and creeks (Lekki, Ikoyi, Epe)

They range from luxury homes in Lagos and short-let apartments to bare plots sold for future development, especially in fast-developing areas like Ibeju Lekki and gated communities in Lekki.

Why Waterfront Properties Are Considered Luxury Investments?

If you’ve ever wondered about the hype surrounding waterfront properties and why they’re considered high-luxury, you are not alone!

Here’s why wealthy Nigerians and foreign investors are pouring millions into beachfront homes in Nigeria and coastal estates:

1. Prestige and Exclusivity
Waterfront living is not just about the view, it’s a statement! Locations like Banana Island, Ikoyi, and Oniru are among the most prestigious neighbourhoods, where luxury homes offer direct access to water, privacy, and high social standing.

2. Long-Term Investment Potential
Thanks to urban expansion and population growth in coastal areas, property near Lagos Lagoon is steadily appreciating. This makes waterfront assets attractive to those seeking long-term capital gains.

3. Rental and Tourism Appeal
Areas like Lekki beachfront and Epe coastal zones are growing in demand for short-lets, holiday homes, and Airbnb-style accommodations. If positioned right, a waterfront home can double as a personal getaway and a revenue-generating investment.

Waterfront Properties as an Investment Vehicle

Waterfront properties in Nigeria, especially in hotspots like Lekki, Banana Island, Victoria Island, and even  Epe, are more than just luxurious homes; they are becoming serious investment vehicles.

Here’s why these waterfront areas are increasingly attractive to investors:

1. Property Appreciation Trends in Lekki, Banana Island & Epe

Over the past decade, Lekki Phase 1 and Banana Island have seen steady annual property appreciation ranging between 10% and 20%, depending on location, title, and infrastructure. With the ongoing expansion of the Lekki-Epe Expressway and the much-anticipated Lekki Deep Sea Port, areas like Epe and Ibeju-Lekki are now positioned as the next big thing in Lagos real estate.

• Banana Island remains Nigeria’s most exclusive address, with plots selling for over ₦1 billion.
• Lekki still commands high prices, especially waterfront plots in gated estates like Pinnock Beach and Friends Colony.
• Epe offers relatively affordable entry points with strong appreciation prospects due to ongoing infrastructure development.

For long-term investors, these locations have proven to be resilient in Nigeria’s often volatile real estate market.

Also read: Why Buying Land In Epe Is A Good Investment

 2. Rental Yield Potential (Especially for Airbnb/Short-let in Lagos)

Waterfront properties also shine in terms of rental income potential. In areas like Lekki Phase 1, Ikoyi, and Victoria Island, short-let apartments are in high demand due to:

• Business travelers and expats.
• Tourists and Nigerians in the diaspora.
• Weekend luxury getaways.

High-end short-let apartments in Lekki can generate between ₦60,000 to ₦150,000 per night, depending on furnishing, location, and view. This creates an attractive rental yield of up to 12–20% annually, which is significantly higher than properties located in mainland Lagos. 

3. Waterfront vs. Inland Property ROI: The Difference

While mainland properties in places like Yaba, Ogudu, and Surulere also appreciate, waterfront homes command premium returns because of:

• Scarcity: Limited supply of true waterfront plots.
• Prestige and demand from high-net-worth buyers.
• Multipurpose use: residential, commercial, or short-let.

However, mainland properties may offer more affordability and quicker resale due to their broader target market. Investors often choose waterfronts for capital gains and inland for rental stability: a useful strategy when building a balanced portfolio.

 4. Growing Demand from Foreign Buyers & the Diaspora

With increased interest in Nigeria’s real estate sector from foreign investors, Nigerians in the diaspora, and high-income expats, the demand for luxury waterfront homes continues to rise.

• Many buy waterfront homes in Lagos as retirement residences or vacation homes.
• The rise of real estate tech platforms has made remote buying easier and safer.
• Nigeria’s elite and returning professionals see waterfront properties as legacy investments or wealth-preserving assets.

As a result, developers are creating more gated communities in Lekki and serviced plots in Epe to cater to this audience.

Related: The Diaspora Guide to Investing in Nigerian Real Estate

So What About the Environmental Risks?

Okay, we have talked about the luxury. Now, what are the environmental risks?  Coastal erosion, flooding, and climate change impacts on Nigerian real estate are growing concerns, especially in low-lying areas like Victoria Island and parts of Lekki Phase 1.

For example, flood risk in Lagos has worsened over the years due to poor drainage and rising sea levels.

Improperly reclaimed lands or developments without proper environmental impact assessments can result in costly surprises.

Conclusion: Smart Move or High-Stakes Gamble?
So, is buying a waterfront property in Nigeria a luxury investment or a ticking time bomb?
It depends. If you’re eyeing areas like gated communities in Lagos, doing proper due diligence, and investing with environmental safety in mind, the potential rewards can be immense. But ignoring the environmental realities could turn your dream into a long-term liability.

In the end, whether you’re chasing prestige, passive income, or a scenic escape, make sure your investment is as sound as the foundation it’s built on—preferably not on eroding coastal sand.

At Thinkmint Nigeria, we have a series of high ROI and sustainable waterfront properties located in Lagos, such as Aquila 1,   Almond Court. You can also check out our website at www.thinkmint.ng/buyrealestate 

Frequently Asked Questions (FAQS) About Waterfront Properties 

Is investing in waterfront property in Nigeria safe?
It can be—if you conduct proper due diligence. Look for areas with solid infrastructure, verified land titles, and approved environmental impact assessments, especially when buying land for sale in Ibeju Lekki or properties near Lagos Lagoon.

What are the most in-demand waterfront areas in Nigeria?
Top locations include:
Waterfront property in Lekki, Banana Island,  and oceanfront homes near Victoria Island. These areas attract both locals and foreign investors due to their mix of exclusivity, accessibility, and rental value.

Are there sustainable real estate projects in waterfront zones?
Yes. Developers are now exploring sustainable real estate in Nigeria, integrating green design, flood-resistant layouts, and eco-friendly construction, especially in newer gated communities in Lagos.

How do environmental risks affect property value?
Environmental risks like coastal erosion and flooding can lower resale value, raise insurance costs, or make a property inhabitable. Always consult with an expert before buying beachfront land in Lekki or oceanfront property in Nigeria.