Why Lagos landlords, agents continue to increase rents | Prestige Real Estate News 

House rents in Lagos skyrocket by over 100% as household incomes stall
Rents across Lagos have continued to rise sharply across major residential areas, from Lekki and Ikeja to Surulere, Ayobo, and the Ikorodu axis, leaving many tenants under increasing financial pressure as household incomes struggle to keep pace with inflation.

While tenants often attribute the increases to landlord opportunism, multiple landlords, property managers, and agents who spoke to Nairametrics said the trend reflects deeper structural pressures in Nigeria’s housing market, including inflation, rising construction costs, currency depreciation, and limited housing supply.

The divergence in perspectives has reignited debate over whether Lagos rent increases are driven by market fundamentals or worsening housing affordability for residents.

What they are saying

Temidayo Ademosu, CEO of Arrowhead Homes and Properties, in charge of managing several properties around Ogba and the Chevron area of Lekki, explained to Nairametrics that rent increases are largely driven by inflation and rising cost of living.

He noted that landlords also face the same economic pressures across the broader economy.

He added that rent adjustments reflect broader price increases in the economy rather than arbitrary decisions by property owners.

“Rent increases have become necessary because the cost of living has risen across the board, and landlords have to adjust in line with the prevailing economic realities,” he said.
Mr Omoniyi Sunday Abiodun, CEO of With God Properties Management, who manages between 30 and 40 residential properties in the Maya and Adamo axis of Ikorodu, told Nairametrics that rising rents are also driven by strong demand for housing compared to limited supply.

He added that rising construction material costs, particularly cement, have also increased the cost of delivering housing units, feeding into higher rents.

Temple Ugwu, Lead Partner at Blumeen Partners, said low rental yields and currency depreciation remain key factors influencing rent adjustments, especially for investors whose expectations are tied to foreign currency value.
He noted that many investors benchmark returns against global expectations, which makes currency movements a critical factor in pricing decisions.

“For example, I have a property in my portfolio whose landlord is based in New York. He bought it over six years ago, and when he compares the rent he expected in dollars at the time with what he receives now, the returns don’t match up due to currency fluctuations.
“What was once a viable return has been eroded over time, and rent adjustments become necessary to keep the investment sustainable,” he told Nairametrics.
Chikere Anozie, a Nigerian property owner living abroad, also said currency depreciation has forced rent increases. He explained that he acquired a property in Lagos when $1 exchanged at about N300, but by 2026, the rate had risen to about N1,400.

“When I bought the property, returns were projected using the N300/$ rate. Over the years, as the naira depreciated, those returns eroded.
“Rent increases might seem high to tenants, but in dollar-equivalent terms, they are necessary to protect my investment,” he told Nairametrics.
He added that the gap between initial investment assumptions and current exchange rate realities continues to influence how diaspora landlords adjust rental values over time.

How rent increases play out on the ground

Beyond the economic explanations, landlords and property managers say rent increases in Lagos are often shaped by tenancy cycles, property conditions, demand pressure, and how tenants respond to adjustments in the market.

Ademosu said rent reviews are typically tied to tenancy agreements, with increases often implemented after an agreed cycle depending on the arrangement between landlords and tenants. He noted that the size of increases varies by location and prevailing market conditions.

He added that many tenants tend to negotiate rather than relocate when rents are raised, largely due to the additional costs involved in moving, including agency fees, legal charges, and caution deposits.

“In most cases, tenants will come back to negotiate because moving comes with additional costs like agency fees, legal charges, and caution deposits,” he said.
Abiodun said demand pressure also plays a key role in how rent increases are implemented, noting that where housing demand is strong and alternatives are limited, landlords are more likely to adjust rents upward within shorter cycles.

He added that many tenants still remain in their homes after rent reviews because comparable options within similar budgets are often scarce.

In Ayobo, Onos said property condition is a major factor in rent adjustments, as landlords often carry out basic renovations such as painting, plumbing repairs, and general maintenance before reviewing rents, particularly in older buildings.

He explained that pricing is also influenced by newer developments within the same area, although older properties are typically priced slightly below newly built units, depending on their level of finishing.

“Older properties are often upgraded before rents are reviewed, and pricing is usually benchmarked against newer developments in the same area, although they are still priced slightly below those newer units depending on the level of finishing,” he said.
In Sangotedo, Leke said neighbourhood development has become a major driver of rent increases, noting that improvements in infrastructure such as roads, electricity, and accessibility have significantly increased the attractiveness of previously developing areas.

He added that this has allowed landlords to review rents more frequently in line with rising demand and improved livability.

Tenants feel the pressure of sharp rent increases

Tenants across Lagos and other parts of Nigeria say rising rents are putting increasing pressure on household budgets, with many reporting sharp increases over the past two years and limited options for relocation.

In Mushin Olosha, Lagos, Abosede Sanya said her rent rose by 87.5%, from N800,000 to N1.5 million per year. She said the increase strained her budget despite a rise in household income.

“I stayed because other apartments now charge similar amounts,” she said, adding that relocation would attract agency and legal fees.
In Igbogbo in Ikorodu, Sam Udom said his rent increased by 50%, from N700,000 to N1.05 million, following minor upgrades to his apartment.

In Akute, Ogun State, Michael Gbenga said his rent rose by 103%, from N320,000 to N650,000 within two years. He said he has remained due to limited cheaper alternatives.

“I don’t plan to move yet because other houses are either unavailable or overpriced,” he said.
Across these areas, tenants said relocation costs such as agency fees, legal charges, and repairs make it more practical to remain in place despite higher rents.

In Abuja’s Nyanya district, Opeyemi Toriola said his rent rose by 87.5%, from N400,000 to N750,000, noting that similar apartments now cost even more.

“Even on the outskirts, you can’t get a similar place below N1.2 million now,” he told Nairametrics.
In Port Harcourt, Ovunda Wodi, who resides in Rumuokoro, said his rent for a three-bedroom apartment in the area was recently increased from N500,000 to N800,000, under a new tenancy agreement that allows for rent review after two years.

He added that for his three-bedroom property in Elelenwo, which he owns, rent was recently increased from N700,000 to N1 million.

What you should know

Nigeria faces a major housing challenge, with 15.2 million units structurally inadequate and a separate deficit of over 15 million homes, according to the Federal Government.

The then-Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, said the crisis requires both expanding supply and improving existing housing quality.

To close the gap, the Federal Government is rolling out the Renewed Hope Estates and Cities programme. Renewed Hope Cities are PPP-driven projects across the six geopolitical zones and the FCT, with one-bedroom units at about N22 million, while Renewed Hope Estates are smaller government-funded clusters of about 250 units, priced between N8 million and N9 million.

Despite this, Dangiwa said Nigeria still needs about 550,000 new housing units annually over the next decade, costing roughly N5.5 trillion per year.

Meanwhile, the Housing Development Advocacy Network (HDAN) has called for stronger mortgage laws, housing finance guarantees, tax incentives, VAT reliefs, expanded housing finance institutions and wider adoption of rent-to-own and cooperative housing models.

– Culled from Nairametrics