Renting a 2-bedroom on Lagos Island now costs up to N17.25 million | Prestige Real Estate News
The cost of renting a two-bedroom apartment across Lagos Island’s major residential markets has risen significantly in recent years, according to data from a residential market report covering the corridor.
The Lagos Island Residential Market Report 2026 by real estate company Lagos Realty, seen by Nairametrics, tracks residential rental prices, sales values and land costs across the market between 2022 and 2026.
The report divides the Lagos Island residential market into four submarkets: Ikoyi, Victoria Island, Lekki Phase 1 and Ikate. It notes that the corridor has undergone significant development over the years, with increasing residential construction across the four areas, even as new supply remains below the level required to meet the wider housing need.
For this analysis, Nairametrics focuses on average annual rents for two-bedroom apartments. The choice reflects the importance of the unit type in Lagos’ rental market, where two-bedroom flats appeal to a broad tenant base, including young professionals, couples and small families, while offering a middle ground between space and rental cost.
Here is what it costs to rent a two-bedroom apartment across the Lagos Island market in 2026.
Ikate – N8.5 million
Ikate has an average annual rent of N8.5 million for a two-bedroom apartment in 2026, making it the lowest among the four Lagos Island submarkets covered in the report.
The area, located immediately east of Lekki Phase 1 and along the Atlantic coastline, has undergone significant residential development in recent years, with low-density housing increasingly giving way to apartment towers and gated residential schemes.
According to the report, the average annual rent for a two-bedroom apartment in Ikate increased from N3 million in 2022 to N8.5 million in 2026, representing a 183.33% increase over the period.
The report also notes that the expansion of residential development has been accompanied by growth in the rental market, with Ikate attracting first-time Island renters and tenants relocating from Lekki in search of relatively lower rental costs.
Lekki Phase 1 – N10 million
Lekki Phase 1 has an average annual rent of N10 million for a two-bedroom apartment in 2026, making it the second-lowest among the four Lagos Island submarkets covered in the report.
The area has seen significant residential development, with new high-rise apartments and gated residential schemes being developed alongside existing housing. Lagos Realty describes Lekki Phase 1 as the most transactionally active of the four submarkets, with a broad renter base that includes young professionals, families and returning diaspora.
According to the report, the average annual rent for a two-bedroom apartment in Lekki Phase 1 increased from N4 million in 2022 to N10 million in 2026, representing a 150.00% increase over the period.
The report also points to the area’s expanding residential development, infrastructure improvements and relative affordability compared with Ikoyi and Victoria Island as factors shaping its rental market.
Victoria Island – N15 million
Victoria Island has an average annual rent of N15 million for a two-bedroom apartment in 2026, making it the second-highest among the four Lagos Island submarkets covered in the report.
The area combines a major commercial district with a substantial residential market, with Grade A offices, multinational companies, banks and diplomatic missions located within and around the area. This has helped sustain demand from corporate occupiers, expatriates and young professionals working on Lagos Island.
According to the report, the average annual rent for a two-bedroom apartment in Victoria Island increased from N6.57 million in 2022 to N15 million in 2026, representing a 128.31% increase over the period.
The report also points to ongoing residential development and the construction of new mixed-use towers along areas such as the Eko Atlantic boundary and Ozumba Mbadiwe corridor, alongside the redevelopment of older low-rise properties.
Ikoyi – N17.25 million
Ikoyi has an average annual rent of N17.25 million for a two-bedroom apartment in 2026, making it the highest among the four Lagos Island submarkets covered in the report.
The area has a strong concentration of high-end residential properties and is home to diplomats, senior corporate executives, expatriates and high-income households. The report also notes that luxury residential units in Ikoyi are frequently priced in US dollars, while newer developments have expanded the range of apartments available to upper-income professionals.
According to the report, the average annual rent for a two-bedroom apartment in Ikoyi increased from N8 million in 2022 to N17.25 million in 2026, representing a 115.63% increase over the period.
The report attributes the rental growth partly to demand from corporate tenants and couples, while limited land availability and the pace of new residential completions continue to shape the market.
– Culled from Nairametrics
