Residents in Lagos are facing increasing frustration as landlords implement substantial rent hikes, surpassing 90%, attributing the surge to the prevalent inflationary pressures.
The rent surge has been particularly noticeable over the past five years, making affordable housing a significant challenge for many Lagosians.
The findings, sourced from data provided by prop-tech platform propertypro.ng and various estate agents, reveal that the weighted average of rent increases across different locations in Lagos stands at an alarming 90.32%.
The surge affects a wide range of neighbourhoods, including Ikeja, Iyana Ipaja, Ikorodu, Surulere, Ilasa, Gbagada, Yaba, Lekki, Ajah, Epe, Magodo Phase 1, and Ikoyi.
The rental rates for 2-bedroom standard apartments have seen dramatic shifts, with the most affordable areas, like Epe, having rates as low as N350,000. In contrast, the upscale Ikoyi area boasts rates reaching as high as N10 million.
Analysis of the data indicates that the economic climate, marked by inflation and increased costs of construction materials, is a driving force behind the rent surge.
Real estate experts point to the rapid urbanization in Lagos, coupled with the high demand for housing, as contributing factors. Economic growth and heightened real estate investments have further intensified the competition in the housing market.
The surge is evident in various parts of Lagos, with Ikeja and Iyana-Ipaja witnessing a doubling of rental rates to N2,000,000 and N800,000 between 2019 and 2024. Other areas like Ikorodu experienced a 60% rise, going from N250,000 in 2019 to N400,000 in 2024.
Femisi Balogun, a developer, attributes the surge to the increasing costs of building materials and inflation. He notes that these factors, combined with rapid urbanization, have driven high demand for housing, contributing to the overall escalation of rental prices.
A real estate expert, Odefadehan Christian, said the driving force behind the surge in rental prices could be attributed to inflation, particularly the significant spike in building material costs.
He told Punch, “The substantial increase in prices for essential materials, such as cement, which has more than doubled from 2,400 in 2019 to 5,500 in 2024, necessitates a corresponding adjustment in rental rates, to compensate for these heightened expenditures.
“Additionally, the evolution of construction techniques and the incorporation of cutting-edge technologies in building infrastructure, encompassing advanced wiring, sophisticated lighting features, and state-of-the-art security systems, contribute to an augmented overall cost of property development.
“Consequently, these advancements in both materials and technology are pivotal factors contributing to the upward trajectory of rental expenses.”
