PAYING MORE FOR LESS: For many Lagos residents, affordable housing is slipping out of reach | Prestige Real Estate News 

By Aderonke Oni

Lagos residents are grappling with soaring house rents, with many lamenting that the cost of accommodation no longer reflects the quality of housing available.

Across the city, tenants say landlords are imposing steep increases, sometimes doubling or tripling rents within a short period, even for apartments with poor infrastructure.

The development has triggered frustration among residents, many of whom are struggling to secure decent accommodation.

RISING RENTS ACROSS THE MAINLAND

Getting affordable homes in Lagos has become a daily struggle

Data from property agents indicate a rise in rental prices between 2025 and 2026, particularly across mainland areas such as Berger, Ketu, Gbagada, Magodo, and Ikeja.

According to the agents, rental values depend on finishing, estate quality, and available infrastructure.

For self-contained apartments, rents now range from about N500,000 to N900,000 per year in Berger and Ketu, N700,000 to N1.5 million in Gbagada, N900,000 to N2 million in Magodo, and up to N1.8 million in Ikeja. Mini flats (one-bedroom apartments) have also seen steep increases. Units in Berger and Ketu now cost between N700,000 and N1.5 million annually, while prices in Gbagada range from N1.2 million to N2.5 million. In Magodo and Ikeja, rents cost N3 million and N3.5 million, respectively.

Two-bedroom apartments now cost between N1.2 million and N2.5 million in Berger and Ketu, N2 million to N4 million in Gbagada, N2.5 million to N5 million in Magodo, and up to N6 million in Ikeja. For three-bedroom apartments, rents range from N2 million to N4 million in Berger and Ketu, N3.5 million to N7 million in Gbagada, N4 million to N8 million in Magodo, and as high as N10 million in Ikeja.

Duplexes (four- to five-bedroom units) attract even higher rents, ranging from N3.5 million to N8 million in Berger and Ketu, N6 million to N12 million in Gbagada, N8 million to over N20 million in Magodo, and between N10 million and N25 million in Ikeja GRA.

The figures represent a sharp increase from rates recorded between 2022 and 2023 in these areas. At the time, self-contained apartments typically cost between N250,000 and N600,000 annually, while two-bedroom flats ranged from N500,000 to N1.5 million. Three-bedroom apartments were generally priced between N800,000 and N2.5 million.

An agent, Olumide, said the total cost (total package) of securing a rental property varies. According to the agent, agency fees could range from 10 to 20 percent, alongside 10 percent legal fees and an additional 10 percent caution fee.

PROPERTIES AND SHORT-LET PRICES

For properties, duplexes in the Berger/Ketu axis cost between N80 million and N180 million, while properties in Gbagada range from N120 million to N250 million. In Magodo and Ikeja GRA, properties cost from N200 to over N500 million.

Short-let apartments have not been spared. In Ikeja, studio apartments now cost between N50,000 and N90,000 per night, while one-bedroom units range from N70,000 to N120,000.

Two-bedroom apartments go for N120,000 to N200,000, and three-bedroom units range from N150,000 to N300,000 or more. In Magodo, studio apartments cost between N80,000 and N130,000, while one-bedroom units range from N90,000 to N170,000. Two-bedroom apartments are priced between N150,000 and N200,000, and three-bedroom units range from N200,000 to N300,000 or higher.

An agent, Oluwafemi, said the current prices represent a 20 to 30 percent increase compared to previous rates. Speaking on the driving factors, he said the price of petrol, for instance, has a ripple effect far beyond transportation.

According to the short-let operator, the price of petrol drives up the cost of food production, building materials, logistics, and general maintenance.

“For short-let operators, this translates into higher expenses for powering apartments, especially with generators, cleaning services, security, internet, and routine upkeep. In that context, price adjustments become, to some extent, a survival strategy,” Oluwafemi said.

He said demand has also grown, especially in areas like Ikeja and Magodo, which are valued for accessibility, relative security, and proximity to business hubs, airports, and leisure centres. He, however, said higher prices reflect genuine upgrades, as property owners invest in renovations, improved amenities, and better overall service.

LEGISLATIVE CONCERN OVER RENT HIKES

On October 23, 2025, the house of representatives asked the federal government to work with states to regulate house rent in the country.

The lawmakers said the challenging economic climate is affecting individuals, households, and businesses, especially those in rental accommodation.

According to the legislators, there is often a “sudden surge in rent” in areas after public infrastructure such as roads, markets, or other amenities are constructed.

PAYING MORE FOR LESS

Despite the increase in rent, tenants say the quality of housing has not improved.

Basic amenities such as stable electricity, water supply, drainage systems, and road access remain inadequate in many parts of the city. This disconnect between cost and value has become a major source of frustration.

Damilola, a resident of Akoka in Yaba, said she pays N350,000 annually for a small self-contained apartment she described as “like a cubicle”.

She said the rent has increased by about 40 percent since she moved in two years ago. “The rent increased from N250,000 to N350,000,” she said.

“Honestly, I don’t think the rent is fully worth the apartment because the room is very small and the facilities are quite basic. But the location makes it expensive since it is close to schools and business areas and most importantly, my workplace.”

She added that tenants often bear the responsibility for fixing issues in the building due to the landlord’s unresponsiveness.

“There was a time my WC broke, and water stagnated in my bathroom; I called the landlord, and he didn’t respond. I just had to fix the issue myself,” Damilola said.

“We are currently having electricity issues. Our light is out due to outstanding bills owed before the other tenants and I even moved into the apartment, but the landlord isn’t doing anything about it. We are the ones contributing money for it.”

She also cited poor infrastructure, including water shortages, electricity challenges, and bad access roads during heavy rainfall.

Another resident, Miracle, said he pays N500,000 for a self-contained apartment, but believes the rent does not match the value of the property.

He added that both tenants and landlords sometimes attempt to address problems, but solutions are often delayed.

“Water is still an issue. It hasn’t been resolved,” Miracle said. He also expressed concern about the possibility of a rent increase.

“If the rent goes up, I won’t be able to afford it. I will have to move to my village,” he said.

A house hunter who recently searched for accommodation described the experience as stressful and exploitative.

“Agents will collect money before showing you houses. You’ll pay, they show you maybe three or four places, and your subscription expires,” the resident said.

“You would see nice places, but the price is really high. A standard self-con shouldn’t be more than N600,000, with the total package around N900,000, but you will never see such prices.”

According to the resident, decent apartments now cost far above expectations.

“Standard self-cons are like N900,000, N1 million, N1.1 million annually, and total packages are about N1.7 million,” she said.

She said agents often shuttle prospective tenants between themselves at a cost, without considering their budget, and focus mainly on what benefits them.

DRIVERS OF THE SURGE

Another agent, Oyeleke, attributed the rising rents to several factors, including a housing supply deficit, rapid population growth driven by migration into Lagos, and rising construction costs.

“Also, land scarcity: prime areas like Ikeja/Magodo have limited land, so it drives up both rent and sale prices. Developers also now prioritise high-margin properties over affordable houses,” he said.

A report titled “Build Cost, Broken Market”, released in March, showed that the price of a 50kg bag of cement has climbed significantly, rising from about N2,500–N3,000 in 2019 to between N11,500 and N15,000 as of March 2026.

The report noted that the increase represents a surge of up to 367 percent in seven years and 30 percent within the first quarter (Q1) of 2026.

It added that other construction materials have followed a similar trend, with steel prices up by about 20 percent, sharp sand increasing by 25 percent, and iron rods recording spikes of over 120 percent.

WHAT THE LAGOS STATE GOVERNMENT IS DOING

The state government said it is making attempts to address critical issues in real estate transactions, especially abnormal rental increments, illegal charges, and dues.

In a press briefing on May 26, Moruf Akinderu-Fatai, Lagos state commissioner for housing, said the Lagos State House of Assembly is working on a new tenancy bill that will address all concerned issues and relieve tenants and homeowners of their concerns.

The commissioner announced that the tenancy bill is currently at the committee stage at the house.

He said the bill will ensure the registration of all agents in Lagos state, noting that failure to register will be an offence and punishable upon conviction.

“This is to checkmate the activities of unregistered agents,” Akinderu-Fatai said.

According to the commissioner, the bill, when passed, will apply to all areas in Lagos state that are currently exempted.

He reiterated the state government’s commitment to promoting transparency, fairness, and accountability in the real estate industry.

– Culled from TheCable