Lagos residents are getting angry because landlords are raising rent by more than 90%, and they blame the increase on general inflationary pressures. The last five years have seen a noticeable increase in the number of cases, which has made it difficult for many Lagosians to find cheap home.
Based on information obtained from propertypro.ng, a prop-tech platform, and multiple estate agents, the weighted average of rent hikes in Lagos is a concerning 90.32%.
Numerous neighbourhoods are affected by this surge, including Yaba, Lekki, Ajah, Epe, Magodo Phase 1, Ikeja, Iyana Ipaja, Ikorodu, Surulere, Ilasa, and Gbagada.
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The cost of renting a 2-bedroom ordinary flat has drastically changed; in Epe, the most cheap neighbourhood, rates can be as low as N350,000, while in the posh Ikoyi neighbourhood, rates can go as high as high as N10 million.
The economic environment characterised by inflation and rising building material costs is what is driving the rent increase, according to data analysis.
Real estate analysts attribute Lagos’s fast urbanisation to the city’s strong housing demand.
Increased real estate investments and economic expansion have made the housing market more competitive.
The increase is visible throughout Lagos; between 2019 and 2024, rental prices in Ikeja and Iyana-Ipaja would double to N2,000,000 and N800,000. In 2024, the value of real estate in Ikorodu increased by 60%, from N250,000 in 2019 to N400,000.
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Developer Femisi Balogun blames inflation and rising building material costs for the spike. He points out that these elements, along with the speed at which cities are growing, have increased demand for homes and raised rental costs overall.
Odefadehan Christian, a real estate expert, attributes the rise in rental prices to inflation, specifically the notable increase in building material costs.
While speaking to Punch, Christian stated, “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.
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“Consequently, these advancements in both materials and technology are pivotal factors contributing to the upward trajectory of rental expenses,” he added.
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