The Lagos holiday rental market has evolved around how people now travel rather than the size of the properties available. Over the past few seasons, one- and two-bedroom apartments have consistently achieved the highest occupancy across the longest booking window, outperforming larger properties in overall annual stability.

Smaller travelling groups, extended stays, remote working and shoulder-season travel have all increased demand for well-located, low-maintenance accommodation that functions as a base for everyday living rather than a once-a-year summer stay.

For property owners, this change has significant implications for both revenue predictability and long-term performance.

A Market Shaped by Couples, Solo Travellers and Longer Stays

The traditional peak-season model, driven by large family groups, still plays an important role in the Western Algarve. However, it no longer defines the majority of annual bookings.

Across much of the year, the typical Lagos guest is:

• a couple travelling outside school holidays
• two adults sharing a centrally located apartment
• a remote worker staying for several weeks
• a small family with one child

These segments prioritise location, comfort and usability over the number of bedrooms. As a result, apartments that are designed for two to four guests attract a wider audience and remain visible in more search ranges.

This breadth of demand allows one- and two-bedroom units to maintain occupancy across multiple seasons rather than relying on a short peak period.

Location and Walkability Drive Booking Frequency

In Lagos, proximity to the Marina, the historic centre and Meia Praia continues to be one of the strongest performance indicators.

Apartments in these areas allow guests to:

• walk to restaurants and cafés
• access supermarkets and services easily
• reach the beach without driving
• structure their day without relying on transport

This level of convenience is particularly important for long-stay visitors and repeat guests. It also explains why centrally located apartments are booked earlier and more consistently than larger properties in quieter, car-dependent locations.

Pricing That Matches the Widest Part of the Market

Most guests begin their search with a budget rather than a property type. One- and two-bedroom apartments sit within the most competitive and most frequently searched price brackets.

This positioning:

• keeps them visible in a higher number of searches
• reduces booking gaps between stays
• supports last-minute reservations
• encourages repeat visits

Larger properties, even when competitively priced, operate in a narrower segment and are therefore slightly more exposed to fluctuations in demand outside peak travel periods.

Operating Efficiency and Net Returns

From an ownership perspective, the strength of one- and two-bedroom apartments is not limited to occupancy.

They typically involve:

• lower utility consumption
• lower cleaning and laundry costs
• less ongoing maintenance
• more predictable wear and tear

In a market where operational costs continue to rise, these factors have a direct impact on net income. A well-located two-bedroom apartment with consistent year-round bookings can produce more stable returns than a higher-rated but more seasonal property.

Flexibility for a Changing Booking Pattern

The growth in off-season travel has reinforced the position of smaller apartments within the Lagos rental market.

Longer stays during autumn, winter and spring are now driven by:

• remote working
• semi-retired couples
• lifestyle travellers seeking milder climates

For these guests, a two-bedroom apartment offers a practical advantage, allowing one room to function as a workspace or to accommodate visiting family and friends.

This flexibility increases booking duration while reducing turnover frequency, supporting more efficient management and more predictable income.

Repeat Guests and Calendar Stability

One of the defining characteristics of high-performing Lagos apartments is the level of repeat bookings. Guests who return each year typically choose:

• the same location
• the same property type
• the same travel period

This behaviour is far more common in one- and two-bedroom apartments than in larger holiday homes, as they match the needs of couples and small groups who travel regularly rather than occasionally.

For owners, this creates a booking calendar that is easier to manage and less dependent on peak-season demand.

The Long-Term Outlook

Current booking patterns indicate that demand for one- and two-bedroom apartments will continue to strengthen. International awareness of Lagos is increasing, travel outside peak summer is becoming more common and extended stays are now a permanent feature of the market.

Frequently Asked Questions

Why do smaller apartments achieve higher occupancy in Lagos?

They appeal to the largest segment of the market, couples, solo travellers and small families, and sit within the most commonly searched price ranges. This keeps them visible for more dates throughout the year.

Are two-bedroom apartments better for long stays?

Yes. They offer the flexibility to use one room as a workspace or for visiting guests, which makes them particularly attractive for extended bookings in the shoulder and winter seasons.

Do larger properties generate higher rental income?

They can achieve higher peak-season rates, but they are typically more seasonal. One- and two-bedroom apartments often produce more stable annual returns due to higher occupancy and lower running costs.

Which locations perform best for this property type?

Central Lagos, the Marina and areas within walking distance of Meia Praia consistently achieve the strongest year-round demand because they allow guests to live without relying on a car.

Is this trend expected to continue?

Current booking behaviour suggests it will. Longer stays, remote working and increased off-season travel all support sustained demand for well-located one- and two-bedroom apartments.