The average annual rent for a three-bedroom apartment in Ikoyi, Lagos, has increased to about ₦25m, highlighting rising cost pressures in one of the city’s most exclusive residential districts.
The figure is contained in Volume 3 of the State of Lagos Housing Market report, which notes that Lagos’ luxury real estate segment has undergone significant transformation over the past decade, evolving into a highly competitive and premium investment market.
According to the report, areas that once offered relatively affordable entry points have seen sustained and often sharp price increases, driven by economic expansion, population growth, and major infrastructure development. Land prices, in particular, have recorded consistent appreciation with little or no reversal over the years.
The report cited Ibeju-Lekki as a clear example. Land plots that sold for between ₦500,000 and ₦1.5m in 2013 rose to between ₦5m and ₦10m by 2018 following the commencement of major projects such as the Lekki Free Trade Zone. By the first quarter of 2025, prices in the area had climbed further to between ₦25m and ₦40m per plot.
Similarly, land values in Lekki Phase 1 have surged from ₦10m–₦15m in 2005 to more than ₦400m–₦500m today, while plots in Eko Atlantic have increased from about ₦180m in the early 2000s to over ₦2bn.
The report described the trend as evidence that real estate in Lagos has increasingly become a vehicle for wealth accumulation rather than purely a response to housing needs. It noted that luxury property demand is largely driven by high-net-worth individuals and diaspora investors seeking long-term value preservation.
Urbanisation and population growth were identified as key drivers of demand. Lagos’ population is estimated at nearly 24 million, growing at an annual rate of about 2.5 percent, with thousands of new residents arriving daily. This sustained influx continues to exert pressure on housing supply, particularly in high-end locations such as Ikoyi.
The State of Lagos Housing Market report is published by the Roland Igbinoba Real Foundation for Housing and Urban Development and provides periodic insights into trends shaping the state’s residential and commercial property sectors.
