Recently at work, my manager asked me to research 𝗰𝗮𝗳𝗲𝘀 and 𝗰𝗼𝘄𝗼𝗿𝗸𝗶𝗻𝗴 𝘀𝗽𝗮𝗰𝗲𝘀 around Ikeja GRA for a new project our company is exploring. At first, I wasn’t entirely sure what the ultimate goal of the research was, and was enjoying hopping from one cafe to another coworking space😅, until I noticed a pattern that completely shifted my perspective. And I’d like to share those insights with you 👇 These cafés and coworking spaces aren’t just trendy hangouts for remote workers and creatives. They’re quietly becoming 𝗵𝗶𝗴𝗵-𝘆𝗶𝗲𝗹𝗱 𝗿𝗲𝗮𝗹 𝗮𝘀𝘀𝗲𝘁𝘀; and it’s happening faster than most people realize. My findings revealed a powerful dual-engine model for income generation. Here’s what stood out: 👇 💰 The Cash Flow Insights • Café Engine: Average spend per customer ranges from ₦2,500–₦4,000. With realistic weekday traffic of 30–60 customers, that’s about ₦𝟳𝟱,𝟬𝟬𝟬–₦𝟮𝟰𝟬,𝟬𝟬𝟬 in daily revenue. • Coworking Engine: Desks go for ₦3,000–₦5,000 daily, or ₦𝟲𝟬,𝟬𝟬𝟬–₦𝟭𝟬𝟬,𝟬𝟬𝟬 monthly (per desk). Even with 𝟭𝟬 𝗮𝗰𝘁𝗶𝘃𝗲 𝗱𝗲𝘀𝗸𝘀, that’s an extra ₦30,000–₦50,000 daily in steady income. Combined, a hybrid café–coworking hub could generate ₦𝟭𝟬𝟬,𝟬𝟬𝟬–₦𝟮𝟵𝟬,𝟬𝟬𝟬 daily — roughly 𝟰𝟬–𝟰𝟱% more than running either business model alone. 📈 𝗧𝗵𝗲 𝗣𝗮𝘁𝘁𝗲𝗿𝗻 Cafés that double as coworking hubs showed 𝗵𝗶𝗴𝗵𝗲𝗿 𝘄𝗲𝗲𝗸𝗱𝗮𝘆 𝘂𝘁𝗶𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗯𝗲𝘁𝘁𝗲𝗿 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗽𝗲𝗿 𝘀𝗾𝘂𝗮𝗿𝗲 𝗺𝗲𝘁𝗲𝗿 than standalone spaces. They’re maximizing both space and time; serving coffee in the morning, productivity in the afternoon, and community all day long. That’s the hybrid advantage. 💼 𝗧𝗵𝗲 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗔𝗻𝗴𝗹𝗲 So, what’s driving their success? It’s not just Wi-Fi or good coffee; it’s the experience. The top-performing spaces shared three traits: ✨ Aesthetic appeal 📶 Reliable internet 🤝 Community events that keep people coming back Spaces combining these three consistently showed higher weekday foot traffic. They’re not just selling a service; they’re curating a lifestyle. And for investors, that matters. 🌍 The Bigger Picture Recent research shows Africa’s coworking market is expanding at a compound annual growth rate in the high teens (≈19.5% per Next Move Strategy Consulting) and about 15% in some regional forecasts. With startups, hybrid work, and freelancers fueling demand — especially in Lagos, Nairobi, and Cape Town — supply of flexible, high-quality coworking space is struggling to keep pace in many key markets. 💭 Your Turn. Here's my question to you As lifestyle-driven real estate evolves, do you think this hybrid model could redefine how we think about property ROI in African cities? I'm curious to hear your thoughts. Let’s discuss in the comments
Favour Dibia AAT, ACA If you were advising an investor entering this market, which model would you bet on, and why?
Have you noticed more cafés doubling as coworking hubs lately? Do you think this is just a trend?
Ewaoluwa Oluwakeye I’d love to hear your thoughts; what other hybrid business models do you think could work well in African urban spaces?
Do you think the ROI justifies the added complexity of running both models?
This is wonderful research Praise Mafeni. Combining and running both models will not be easy and that definitely justifies the ROI. I don't think it's just a trend, as more tech jobs show up in the market, people would need more collaboration spaces. What's better than a space where you can chill and work at the same time? This is the future.
Data Analyst | Finance | Private Equity & Wealth Management Enthusiast 💼
2wTamer Abomosalam I’d be really curious to hear your perspective on this from a Dubai standpoint; especially given how lifestyle-driven spaces and coworking hubs are scaling fast over there. Do you think the hybrid café–workspace model has similar investor appeal in Dubai or is the market already too saturated?