Rising Rents Push Asaba Residents Deeper Into Housing Hardship

Residents of Asaba, Delta State, are facing increasing difficulty securing and retaining decent accommodation as rising rents, inflation, stagnant incomes and the wider cost-of-living crisis put greater pressure on household finances.

Asaba has continued to expand, with new roads, businesses and construction projects changing the city’s landscape. The state capital has also attracted people seeking employment, education, trade and better economic opportunities.

But behind the growth, many residents are struggling to keep up with the cost of housing.

For some households, finding accommodation has moved beyond a normal financial responsibility and become an annual struggle involving difficult choices between rent, food, transportation, school fees, electricity and healthcare.

A 2025 report on the State of Lagos Housing Market cited in the report indicated that rent could consume between 50 and 70 per cent of household income in some cases, reflecting the growing affordability challenge facing Nigerian households.

Residents also face additional costs from estate agents, legal fees and other charges, meaning the amount required to secure a property can be significantly higher than the advertised rent.

In parts of Asaba, a one-bedroom apartment can cost between N700,000 and N1m annually, while larger apartments command higher rents.

For workers whose earnings have not increased at the same rate as inflation, the cost of accommodation can consume a substantial portion of their income.

Workers struggle to keep up with rent increases

Ella, a civil servant living in Ugbolu, said she previously paid N400,000 annually for a three-bedroom apartment but now pays N700,000.

Her salary, however, has not increased by a similar margin, leaving less money available for savings and other family needs.

For Okafor Ikechukwu, a commercial tricycle operator and family breadwinner, the situation has become even more difficult.

His annual rent increased from N150,000 to N360,000, while his income did not rise accordingly. On some days, he said, he works for several hours without getting enough passengers.

Much of his earnings goes towards feeding his family, leaving little available for rent savings.

He said that while he was previously able to pay his rent once a year, he now sometimes has to make payments in instalments because raising the full amount at once is difficult.

Artisans are also feeling the pressure.

Paul Edward, a professional plumber who has worked in Asaba for more than 20 years and chairs the Plumbers Association, said his annual rent had increased from N145,000 to N450,000.

He said that after paying school fees, feeding his family and meeting other household expenses, saving enough money for rent had become increasingly difficult.

According to Edward, some artisans have resorted to living in unfinished buildings because they can no longer afford decent accommodation.

Owen Marvellous, a married commercial tricycle operator and father, said his housing needs changed after he started a family.

He explained that living in a single room was more manageable before marriage, but having a wife and children meant he needed a larger apartment.

The cost of moving into a bigger home, however, has become increasingly difficult to bear.

He said one-bedroom apartments can cost between N700,000 and N1m annually in some parts of Asaba, while agency and other charges add further pressure to prospective tenants.

Single mothers face additional housing pressure

For Doris, a single mother with one child, the housing challenge goes beyond rent.

She lives in a one-room apartment affected by poor drainage and flooding, making living conditions difficult.

Her concerns increased when her landlord threatened to remove the roof of the building during the rainy season.

Doris said she was terrified by the possibility of being left without a roof over her head.

She also faced the prospect of receiving a quit notice and, at one point, had to borrow money to raise enough funds to remain in her accommodation.

For a single-income household, the loss of accommodation could create wider consequences for the stability and security of the family.

Commercial rents squeeze businesses

The pressure is not limited to residential accommodation. Business owners are also dealing with increasing commercial rents.

Ikechukwu Emmanuel, who has been in the plumbing materials business for 15 years, said shops in Asaba now cost between N1m and N1.5m annually, depending on location and other factors.

He explained that when commercial rent is combined with residential accommodation, transportation, electricity, staff salaries and other operating costs, business owners can end up spending most of their earnings simply to remain in operation.

According to him, some entrepreneurs are now using money that would otherwise have gone into expanding their businesses to cover operating expenses.

Others, he said, have been forced to shut down after years of trading because the cost of maintaining their businesses became unsustainable.

Precious, a fashion designer in Okpanam, said rising shop costs had also affected her business.

She said that when a customer brings work worth N10,000, she may accept the amount without negotiating because she needs the money to meet her growing expenses.

“Rent keeps increasing, but my income has not increased at the same pace,” she said.

Housing demand outpaces supply

Estate agents in Asaba said the rental market had changed considerably in recent years.

Anthony, an estate agent with 12 years of experience in the city, said the market began changing significantly around 2023 as Asaba’s population grew and infrastructure improved.

According to him, demand for accommodation increased while the supply of available homes did not grow at the same pace.

Another estate agent, Gozie, attributed part of the increase in rents to higher construction costs.

He said the cost of building materials, labour, transportation and other development expenses had increased, with developers passing some of the additional costs on to tenants through higher rents.

Okolie Alexander, a building materials dealer, also said construction commodities had become more expensive.

He attributed the increases to fuel costs, transportation expenses, government policies and international economic conditions.

Economist links rent crisis to supply gap

Prof Anthony Monye-Emina, Head of the Department of Economics at Dennis Osadebay University, identified the imbalance between housing demand and supply as a major factor behind the rising rents.

He said Asaba was attracting more residents but affordable housing was not being developed quickly enough to meet the growing demand.

According to him, inflation has worsened the situation because the prices of goods and services continue to rise while wages do not automatically increase at the same pace.

As a result, households are forced to devote a larger share of their earnings to basic needs, leaving less money for savings, investments and emergencies.

Solomon Eyikwe, Chairman of the Asaba Branch of the Nigerian Institution of Estate Surveyors and Valuers, said Nigeria’s largely market-driven housing system gives private property owners significant control over rental prices.

He also pointed to exchange-rate fluctuations and inflation as factors that have increased the cost of imported building materials and property development.

Samuel Ekiyor, a married resident and father, expressed concern that continued increases in rent could eventually make it difficult for many workers to afford to live in Asaba.

Developing rural areas could ease pressure on cities

Monye-Emina said part of the response to rising urban housing demand should involve developing rural communities.

He argued that better roads, healthcare, schools and economic opportunities in rural areas could reduce the pressure driving people into cities such as Asaba.

According to him, reducing the need for people to move into urban centres could help moderate pressure on available housing.

The housing situation has broader consequences because accommodation costs affect household welfare, business operations and residents’ ability to save or invest.

The experiences of civil servants, artisans, commercial tricycle operators, traders, business owners and single parents in Asaba show how rising housing costs are affecting different categories of residents.

For many of them, the demand is not for luxury accommodation but for a decent home that can be sustained alongside other basic household expenses.

As rents continue to rise, residents are increasingly being forced to reduce spending, postpone plans, use instalment payments, borrow money or consider cheaper accommodation options.

The situation has also raised concerns about the ability of workers and small businesses to remain in the city as accommodation and operating costs continue to increase.

For many residents, a home that should provide security and stability is increasingly becoming another source of financial uncertainty.

The post Rising Rents Push Asaba Residents Deeper Into Housing Hardship appeared first on Housing TV Africa.

Property Brokers Face Scrutiny as Rising Markups Push House Prices Higher

Nigeria’s real estate market continues to record soaring property prices, with activities by brokers in short-let apartments, property flipping and speculative investments adding pressure to an already strained market and further weakening housing affordability.

However, experts have differing views on how much influence brokers have over rising prices. While some acknowledge that brokers play a role in pushing prices higher, others point to increasing costs of land, cement, steel, labour, diesel, imported materials, financing, infrastructure and statutory charges as the major factors behind the increases.

For decades, traditional estate agents in Nigeria earned commissions by connecting willing buyers with sellers. But a new category of property brokers is increasingly emerging across Lagos and other major cities, becoming more involved in the property pricing process.

Rather than waiting for property owners to give them houses or plots to market, these brokers search for properties they believe are undervalued, negotiate directly with owners, secure agreements, add their own margins and then look for buyers.

Some acquire properties outright and resell them, while others secure control of properties and sell their interests before the transactions are completed.

Some brokers specialise in distressed properties, while others focus on land in emerging locations, off-plan apartments or houses that can be renovated and repositioned for a higher value.

The business model is straightforward: acquire or control a property at one price and sell or exit at a higher price.

The practice is attracting greater attention as Nigeria’s property market deals with high land prices, rising construction costs, limited housing supply and increasing rents. This has raised questions among property professionals and consumers about whether brokers are simply responding to rising prices or adding another layer of inflation to the market.

The growing interest in this model is partly driven by the returns available from property appreciation. Under the traditional agency model, an estate agent could earn a percentage of a N100 million transaction as commission.

Under the newer brokerage model, a broker who acquires the same property for N85 million and resells it for N100 million could potentially make N15 million before accounting for transaction and holding costs.

This means the incentive is no longer limited to completing transactions. Brokers also have an incentive to identify properties that can be acquired cheaply, controlled and resold at a higher price.

The distinction is becoming more significant in Lagos, where property values have increased sharply in several locations.

The 2026 Lagos Real Estate Industry Report by Agusto & Company estimated that land prices within five kilometres of the Lekki-Epe corridor increased by between 25 and 40 per cent from the first quarter of 2025 to the first quarter of 2026.

In Ibeju-Lekki, land prices reportedly rose from about N15 million per plot in 2024 to as much as N35 million in 2026.

Some locations have recorded even more dramatic increases.

Data from Lagos’ coastal property market showed that land values in the Bluewater-Okunde area increased from approximately N329,000 per square metre in 2021 to between N2.5 million and N2.8 million in 2026. That represents an increase of between 660 and 751 per cent, with the growth linked to major infrastructure and investment projects around the coastline.

Such appreciation can attract speculators, while each transaction may subsequently become a reference point for the next asking price.

For example, a homeowner may be willing to sell a property for N100 million, while an intermediary negotiates the price down to N90 million and subsequently resells it for N105 million or N110 million.

The next buyer may then use the higher resale figure as an indication of the property’s market value.

This can create a chain of mark-ups even when there has been no improvement or development on the property.

The situation is further complicated by limited reliable data on actual property transaction prices. Nigeria does not have a centralised mandatory registry for completed property transactions, while market reports often make a distinction between asking prices and the prices at which properties are actually sold.

Short-lets add another layer

Short-let apartments have introduced another dimension to the pressure on property prices, particularly in Lagos.

A conventional two- or three-bedroom apartment is increasingly being valued not only according to what a long-term tenant can afford to pay annually, but also according to the income it could generate from short-term occupants.

According to the Lagos Short-let Market Report 2025 by Edala Development, the Lagos short-let market generated an estimated N281.03 billion in revenue in 2025.

The report was based on 5,806 listings and projected revenue of approximately N285.5 billion for 2026. It also found that short-let properties can generate returns between three and six times higher than conventional residential leases.

Instead of relying on annual rent, an investor can furnish an apartment and market it for nightly or weekly stays.

For brokers, this provides another selling point because the property can be presented not simply as a home, but as an income-generating hospitality asset.

The calculation is influencing property values in areas including Lekki, Victoria Island, Ikoyi, Ikeja, Yaba and Surulere.

In Banana Island, the average short-let rate reportedly reached about N329,000 per night in 2025.

Such potential returns can encourage investors to value apartments based on their short-let earning capacity rather than conventional rental income, creating additional pressure on both property values and rents.

The growth of short-lets also has implications for housing supply.

Every conventional apartment converted into short-let accommodation potentially removes a unit from the long-term rental market.

A June 2026 report by The Guardian cited concerns from industry stakeholders that the conversion of residential properties into short-lets in Lagos and other major cities is contributing to the decline in conventional rental stock and rising housing costs.

Technology changes the brokerage market

Technology is also transforming the way property brokers operate.

Online listing platforms, digital advertising, social media, property mapping tools and faster access to market information allow brokers to circulate properties to thousands of prospective buyers within a short period.

While these tools can encourage greater professionalism in the sector, they can also create perceptions of scarcity and competition.

Brokers can advertise properties aggressively, circulate listings through WhatsApp groups and social media, generate multiple expressions of interest and create a sense of urgency that may encourage prospective buyers to increase their offers.

Registered estate agents, however, have differing views about the extent of brokers’ influence on property prices.

While some acknowledge that brokers contribute to rising prices, others attribute the increases largely to the rising costs of land, cement, steel, labour, diesel, imported materials, financing, infrastructure and statutory charges.

Vice Chairman, International, of the Association of Estate Agents in Nigeria (AEAN), Dr Adeniyi Tinubu, said brokers contribute to the rapid increase in Lagos property prices but described them more as “price amplifiers” than price-setters.

According to him, land scarcity, inflation and exchange-rate pressures remain the fundamental forces behind the market’s price increases.

“Property brokers, flippers and speculative investors are not simply passive observers of Lagos’ property boom. They can actively accelerate it. But they operate on top of powerful fundamental forces rather than creating the entire increase themselves,” Tinubu said.

Tinubu, who is also the Chief Executive Officer of Hudders Field Property Agency, said brokers contribute to property price inflation through expectation-driven pricing.

He explained that asking prices are often based on the prices at which neighbouring properties are listed rather than what those properties actually sold for.

He also pointed to multiple agency commissions, information gaps between property owners and buyers, and expectations of future appreciation as factors contributing to the trend.

“This creates an important distinction between asking prices and transaction prices,” he said.

“A market can appear to be appreciating rapidly because advertised prices are repeatedly marked upward, even when actual completed transactions have not increased by the same magnitude.”

Tinubu said property flippers have a more direct impact on prices, while land speculation represents the strongest inflationary mechanism.

According to him, investors who purchase land solely in anticipation of future appreciation effectively remove the land from productive supply while waiting for its value to increase.

“The more concerning phenomenon is speculative land holding combined with aggressive asking-price benchmarking. It can create a market in which anticipated future prices become the basis for today’s prices, rather than today’s prices being determined primarily by rental income, replacement cost and genuine end-user demand,” he said.

He added that buying properties for quick resale, particularly off-plan units and land in emerging areas, could push prices beyond underlying incomes, reduce access to homeownership, increase unaffordability and distort the rental market.

However, Tinubu cautioned against viewing every property investor as harmful.

He noted that speculative capital can provide early-stage funding for developers, help bring neglected land into the formal market, accelerate infrastructure and development, reduce financing risks, improve distressed properties and increase liquidity in the market.

“The critical distinction is between productive investment and purely extractive speculation,” he said.

“An investor who buys off-plan, holds the property, rents it out or develops it contributes to housing supply. An investor who simply buys scarce land, does nothing with it and resells it at a substantial markup contributes much less to housing supply while potentially increasing the acquisition cost for the eventual user.”

The National Chairman of AEAN, Olugbenga Ismail, also said speculation can amplify an already rising property market.

“Where properties and plots are repeatedly resold over short periods without any corresponding improvement, development or value addition, each transaction may introduce another layer of expected profit,” Ismail said.

He explained that the issue becomes more pronounced in emerging areas where investors buy properties largely on the expectation that another buyer will later pay more.

When speculation begins to outpace housing production, genuine homebuyers have to compete not only with other prospective homeowners but also with investors seeking capital appreciation.

Ismail, who is Principal Partner at Ismail and Partners, acknowledged that short-lets can reduce conventional rental supply in particular neighbourhoods.

However, he cautioned against attributing rent increases across Lagos entirely to the short-let sector without stronger empirical evidence.

“There is also evidence that landlords and investors have converted conventional rental accommodation into short-lets because of potentially higher returns and different tenancy-risk considerations,” he said.

“But the evidence is more nuanced than simply saying, ‘short-lets are increasing everywhere and therefore rents are rising.’”

Ismail called for greater transparency, professionalism and increased housing supply rather than direct price controls.

“The ultimate solution to housing affordability is not simply stopping somebody from selling property at a profit. It is ensuring that Lagos continually produces enough properly titled, serviced and appropriately priced housing to meet demand,” he said.

“Our long-term goal must therefore be greater supply, better data, stronger professional standards and a more transparent property market,” he added.

The Chairman of the Lagos State Chapter of AEAN, Abiodun Adelaja, attributed the steady increase in property prices largely to the rising cost of construction materials and general inflation.

He said landlords and developers determine property prices based on prevailing construction costs, making it difficult for them to sell properties at prices comparable to those charged several years ago.

Adelaja called for measures to reduce construction costs and greater government intervention through the development of public housing estates that would provide more affordable alternatives to privately developed estates.

The post Rising House Prices: Brokers, Flippers and Short-Lets Under the Spotlight appeared first on Housing TV Africa.

The Economic and Financial Crimes Commission (EFCC) has urged the Lagos State Real Estate Regulatory Authority (LASRERA) to strengthen enforcement against fraudulent estate agents. The anti-graft agency also advised the regulator to create a denylist for individuals and companies found guilty of real estate fraud.

The recommendation came during a meeting between the Acting Zonal Director of EFCC Lagos Zonal Directorate II, ACE I Bawa Usman Kaltungo, and the Permanent Secretary of the Lagos State Ministry of Housing, Engineer Abdulhafis Gbolahan Toriola. Senior officials from LASRERA also attended the meeting.

Kaltungo said stronger regulation would help protect homebuyers, investors and property developers. He also called for regular information sharing between both agencies to improve investigations and enforcement.

EFCC Offers Investigative Support

The EFCC said it will continue to support LASRERA with investigations into fraudulent property transactions. Kaltungo explained that closer cooperation would help identify offenders faster and ensure they face prosecution under the law.

He also praised LASRERA for implementing the Lagos State Real Estate Regulatory Authority Law 2022. According to him, the law has created a stronger foundation for regulating the real estate industry in Lagos.

The commission disclosed that it is handling several cases involving alleged fake estate agents and property-related fraud. These cases involve individuals and organisations accused of misleading members of the public through illegal real estate transactions.

Lagos Reaffirms Commitment to Transparency

Engineer Abdulhafis Gbolahan Toriola said the Lagos State Government remains committed to promoting transparency, accountability and professionalism in the property market.

He noted that stronger collaboration with the EFCC would improve compliance with existing regulations. He added that the partnership would also increase public confidence in buying, selling and investing in property across the state.

Both organisations agreed to deepen their cooperation as part of efforts to reduce criminal activities within the real estate sector.

Why Stronger Regulation Matters

Property fraud remains a major challenge in Nigeria’s housing sector. Many buyers lose money through fake land sales, forged documents, multiple sales of the same property and unregistered estate operators.

These practices weaken investor confidence and slow the growth of the housing market. They also create risks for mortgage lenders, developers and genuine estate professionals.

Industry experts have consistently argued that stronger regulation can improve transparency and attract more investment into Nigeria’s real estate sector. Better enforcement can also encourage responsible housing development and strengthen consumer protection.

As Lagos continues to expand, effective regulation will play an important role in creating a safer property market. Closer cooperation between regulators and law enforcement agencies could help reduce fraud and improve confidence in real estate transactions across the state.

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The warning, delivered by the Commissioner for Housing, Moruf Akinderu-Fatai, emphasized the importance of compliance with the registration requirements set by the Lagos State Real Estate Regulatory Authority (LASRERA). Failure to comply would result in legal consequences.

Commissioner Akinderu-Fatai highlighted the necessity of this warning to maintain order and ensure that real estate transactions are conducted in a transparent and fraud-free manner across Lagos State. He urged residents to be cautious and verify the registration status of real estate agents they engage with to avoid falling victim to fraudulent practices.

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In addition to the warning, Commissioner Akinderu-Fatai provided updates on the progress of various housing schemes across the state.

These include the Egan-Igando Mixed Housing Scheme, which comprises 846 units in the Igando-Ikotun Local Council Development Area, and the LagosHOMS Sangotedo Phase in Eti-Osa East LCDA, which consists of 528 housing units and is expected to be completed by the fourth quarter of 2024.

READ ALSO: Lagos State to Compensate Only Approved Properties in Coastal Road Demolition

Other ongoing projects mentioned by the commissioner include the Epe Housing Scheme in Itamarun, Epe Local Government, which is set to produce 112 housing units by the fourth quarter of 2024, and the LagosHOMS Ajara in Badagry Local Government, comprising 420 home units with a projected completion date in the first quarter of 2025.

Additionally, the LagosHOMS Ibeshe Phase 2, with 192 housing units in Igbogbo-Baiyeku LCDA, is proposed to be completed by the second quarter of next year.

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