Lagos ranks fourth for luxury two-bedroom rents

Lagos ranked fourth among the 10 cities for high-end two-bedroom rental costs, with an average annual rent of $19,379 in 2026.

Nairametrics, in its recent report, attributed high property prices to limited land availability, strong demand in prime locations, rising construction costs, speculation, and currency devaluation.

“High-end properties in Ikoyi, Victoria Island, and Banana Island are typically dollar-denominated, while some ultra-luxury developments along the Bourdillon, Alexandra, and Gerrard corridors in Ikoyi command rents of up to $130,000 annually,” the report said.

According to the report, the cost of renting also extends beyond annual rent, with tenants facing advance payments and additional charges when securing accommodation.

The report added that Nigeria is among markets where tenants typically pay annual or multiple years’ rent in advance, stressing that agency fees typically range from one to two months’ rent or 10 per cent of annual rent.

It stated that legal and agreement fees can range from five per cent to 10 per cent of annual rent.

“Other costs include caution deposits, stamp duty, utility deposits, internet installation, and service charges,” it added.

The report said these additional costs can make the actual cost of securing a rental property significantly higher than the headline rent.

It pointed out that rising development costs are adding to the pressure on Lagos’ housing market, with land prices more than doubling in several parts of the city in recent years.

The report highlighted that developers also face sharp increases in construction materials, with cement now selling for about N12,500 to N15,000 per bag, compared with N5,000 to N6,000 at the end of 2023, while reinforcement steel has risen to between N1m and N1.5m per tonne.

“For medium-sized residential developments, construction materials and labour can account for about 50 per cent to 65 per cent of the construction budget, while land can represent around 20 per cent of expected revenue on some projects. These rising costs are prompting developers to reduce unit sizes, move to areas where land is cheaper, use alternative materials, and develop projects in phases, although industry experts say a significant portion of the higher costs is ultimately passed on to buyers and tenants,” it stated.

It emphasised that Lagos’ housing deficit stood at about 3.4 million units in 2025, with the state requiring an estimated 227,576 new homes annually to keep pace with population growth and replace ageing housing stock.