Lagos Island two-bedroom rent hits N17.25m – Report

The cost of renting a two-bedroom apartment in prominent residential areas of Lagos Island has reached a new high, with average annual rents hitting N17.25 million in 2026.

This figure comes from the Lagos Island Residential Market Report 2026, compiled by real estate firm Lagos Realty. The report, which analyzes rental prices, property values, and land costs across Ikoyi, Victoria Island, Lekki Phase 1, and Ikate between 2022 and 2026, indicates substantial rent increases across all four submarkets.

Ikoyi emerged as the most expensive area, with an average annual rent of N17.25 million for a two-bedroom apartment. Victoria Island followed closely, with rents averaging N15 million annually. Lekki Phase 1 recorded an average rent of N10 million, while Ikate had the lowest average rent among the surveyed areas at N8.5 million.

The report highlights a dramatic increase in Ikate, where the average rent for a two-bedroom apartment rose by 183.33% from N3 million in 2022 to N8.5 million in 2026. This surge is attributed to significant residential development, with low-density housing increasingly replaced by apartment towers and gated communities, attracting renters seeking relatively lower costs.

Lekki Phase 1 saw a 150% increase in average rent for a two-bedroom apartment, reaching N10 million annually. The area is noted for its high transaction volume, driven by young professionals, families, and returning diaspora members, benefiting from ongoing infrastructure improvements and relative affordability compared to Ikoyi and Victoria Island. Victoria Island's rents increased by 128.31% over the four-year period, reflecting its status as a major commercial hub with a substantial residential market.