Lagos Rental Prices Surge by 91% over Five-Year Period

The city of Lagos has witnessed a staggering 91.32 percent increase in rents over the last five years, presenting a formidable challenge for residents in search of affordable housing.
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This information is derived from data collected from prop-tech, propertypro.ng, and various estate agents across different locations.

To compute the overall percentage increase in Lagos rents, a weighted average of the percentage increase for each location was calculated. This involved using the initial rents in 2019 as weights, reflecting the proportional contribution of each location to the total rent in 2019. The result represents the average growth in rent prices from 2019 to 2024 across the specified locations.

A survey evaluating 2-bedroom standard apartments in 12 different parts of Lagos—namely Ikeja, Iyana Ipaja, Ikorodu, Surulere, Ilasa, Gbagada, Yaba, Lekki, Ajah, Epe, Magodo Phase 1, and Ikoyi—revealed substantial variations. For instance, a 2-bedroom apartment in the Epe area, considered one of the more affordable locations, plummeted to as low as N350,000, while rates soared to as high as N10 million in the upscale Ikoyi area.

Noteworthy shifts were observed in rental rates for Ikeja and Iyana-Ipaja, which doubled to N2,000,000 and N800,000, respectively, between 2019 and 2024. Similarly, Ikorodu experienced a 60 percent increase, rising from N250,000 in 2019 to N400,000 in 2024.

Femisi Balogun, a developer, pointed out, “Adding to this surge, the increasing costs of building materials coupled with inflation have played a significant role. Rapid urbanization in Lagos has driven high demand for housing, and the rising costs of construction materials have contributed to the overall increase in rental prices.”

Economic growth and heightened real estate investments have intensified this demand, resulting in a competitive market. Gbagada and Magodo Phase 1 exemplify this trend, with rental prices skyrocketing by 150 percent and 108 percent, respectively. Oshodi-Isolo experienced a more modest increase of 37.5 percent, climbing from N400,000 in 2019 to N550,000 in 2024.

Yaba, Surulere, Ajah, and Lekki also saw significant increases of 41 percent, 133 percent, 50 percent, and 50 percent, respectively, reaching N1,200,000, N700,000, N1,800,000, and N1,800,000 in 2024.

He said, “The substantial increase in prices for essential materials, such as cement, which has more than doubled from 2,400 in 2019 to 5,500 in 2024, necessitates a corresponding adjustment in rental rates, to compensate for these heightened expenditures.

“Additionally, the evolution of construction techniques and the incorporation of cutting-edge technologies in building infrastructure, encompassing advanced wiring, sophisticated lighting features, and state-of-the-art security systems, contribute to an augmented overall cost of property development.

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