Luxury Two-Bedroom Rent in Lagos Averages $19,379 Yearly — Report

Lagos has emerged as Africa’s fourth-most expensive city for renting a luxury two-bedroom apartment, according to real estate research attributed to Fortren & Company.

The report placed the average annual rent for such properties in Lagos at $19,379—approximately ₦26.8 million at the exchange rate applied in the study.

Abidjan ranked first with an average annual rent of $41,671, followed by Cape Town at $27,813 and Accra at $26,299.

The Lagos figure relates primarily to high-end properties in prime neighbourhoods such as Ikoyi, Banana Island and Victoria Island. It should not be interpreted as the average rent for a two-bedroom apartment across the entire state.

Some ultra-luxury apartments along Bourdillon, Alexandra and Gerrard roads in Ikoyi reportedly command annual rents of up to $130,000.

The report linked Lagos’ elevated luxury rents to the limited availability of prime land, strong demand, high construction costs, speculative activity and the depreciation of the naira.

Many properties within the city’s premium residential market are also priced in United States dollars, protecting owners from local currency depreciation but increasing the financial burden on tenants earning in naira.

Demand is supported by expatriates, diplomats, senior corporate executives and Nigerians returning from the diaspora who seek secure, fully serviced apartments with reliable electricity, water, leisure facilities and professional property management.

Tenants may also face agency fees, service charges and demands for one or two years’ rent in advance, pushing the total cost of securing accommodation considerably above the advertised rent.

The ranking highlights the strength of Lagos’ premium rental market while drawing attention to the widening affordability gap between luxury housing and accommodation accessible to average-income residents.

Sources: PUNCH and Abode2.

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Luxury property values in Lagos have surged sharply over the past year, with a portfolio of 10 high-end investment assets rising to ₦25.6 billion from ₦9.3 billion recorded in December 2024, according to industry data.

The strongest gains were recorded in Ikoyi, one of Nigeria’s most exclusive neighbourhoods, where property values increased between 132 per cent and 176 per cent. Analysts attribute the surge to strong investor demand and the impact of the naira’s devaluation, which has favoured buyers holding stronger foreign currencies.

Despite the emergence of new upscale districts across Lagos, Ikoyi continues to attract premium residential and commercial investments, reinforcing its reputation as a top destination for high-yield real estate.

David Mbah, chief executive officer of MDS Properties, noted that the area remains the first choice for luxury developments, with only Eko Atlantic offering comparable exclusivity.

He explained that most new projects in Ikoyi involve redeveloping older structures into modern high-rise residential buildings that command higher sale and rental values, making such investments highly profitable.

Several properties within the surveyed portfolio recorded major value jumps. A prime parcel at Sapara Williams rose to ₦4.02 billion from ₦1.73 billion, while a Macdonald Road property climbed to ₦3.15 billion from ₦1.14 billion. A Sinari Daranijo asset appreciated to ₦6.93 billion from ₦2.69 billion, becoming the most valuable property in the portfolio. Another property in Rumens appreciated by 196 per cent to ₦5.05 billion.

Abuja’s high-end market also recorded growth, though at a more moderate pace. A property on Mike Akhigbe Street increased to ₦1.8 billion from about ₦418 million, while an Ago Dutse location rose to ₦600 million from approximately ₦248 million.

Industry professionals say inflation and currency depreciation have played a major role in pushing up property prices across Lagos.

Chudi Ubosi, principal partner at Ubosi Eleh & Co, noted that land on Cooper Road that sold for about ₦800,000 per square metre in January 2024 now commands as much as ₦3.5 million per square metre.

He added that prices have also increased on the mainland. In Ikeja GRA, land now sells for around ₦1.5 million per square metre, up from ₦600,000, while a three-bedroom flat rents for about ₦15 million per year, compared to ₦5 million previously.

Rental values in top locations have risen even more sharply. In Banana Island, an average duplex now rents for between ₦80 million and ₦100 million annually.

Ubosi urged authorities to ease pressure on the city centre by expanding transport infrastructure into surrounding areas through coastal roads, rail systems and waterways.

Charles Ihedigbo, a former managing director at Fine and Country, also confirmed the surge in Ikoyi property values, attributing it to limited land supply and sustained demand.

According to him, land that sold for about ₦1.5 million per square metre in 2024 now goes for roughly ₦3.5 million per square metre, noting that land typically appreciates faster than built structures because of its development flexibility.

Lagos, Africa’s most populous city with more than 20 million residents, continues to attract both local and international investors, sustaining demand for premium real estate despite infrastructure constraints.

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