Lagos among world’s most expensive cities for luxury apartment rent

Lagos has ranked fourth among 10 cities with the highest rental costs for luxury two-bedroom apartments, with an average annual rent of $19,379 in 2026.

According to a recent report by Nairametrics, the high cost of property in Lagos is driven by limited land, strong demand in prime areas, rising construction costs, speculation and the depreciation of the naira.

The report noted that luxury properties in areas such as Ikoyi, Victoria Island and Banana Island are often priced in dollars.

It added that some ultra-luxury apartments along Bourdillon, Alexandra and Gerrard roads in Ikoyi can cost as much as $130,000 per year to rent.

Beyond the annual rent, tenants also have to pay several additional charges when securing accommodation.

The report said tenants in Nigeria commonly pay one year or even multiple years’ rent upfront. Agency fees usually range from one to two months’ rent or about 10 per cent of the annual rent.

Legal and agreement fees can also cost between five and 10 per cent of the annual rent.

Other expenses may include caution deposits, stamp duty, utility deposits, internet installation and service charges.

These additional payments can make the total cost of renting a property much higher than the advertised rent.

The report also linked the rising cost of housing in Lagos to increasing development expenses. It noted that land prices have more than doubled in several parts of the city in recent years.

Construction materials have also become more expensive. A bag of cement now costs about N12,500 to N15,000, compared with N5,000 to N6,000 at the end of 2023.

The price of reinforcement steel has also risen to between N1 million and N1.5 million per tonne.

According to the report, construction materials and labour can account for about 50 to 65 per cent of the budget for medium-sized residential projects.

Land can also account for about 20 per cent of expected revenue on some projects.

As a result, some developers are reducing apartment sizes, moving to areas where land is cheaper, using alternative building materials and developing projects in phases.

However, the report said a significant part of the higher development costs is eventually passed on to property buyers and tenants.

Lagos is also facing a major housing shortage. The report estimated that the state’s housing deficit stood at about 3.4 million units in 2025.

It said Lagos needs about 227,576 new homes every year to meet population growth and replace ageing housing stock.

Dear Vows