What is the average rent in Lagos (Nigeria)?

Authored by the expert who managed and guided the team behind the Nigeria Property Pack

Yes, the analysis of Lagos' property market is included in our pack

Who is the author of this content?

THE AFRICANVESTOR

A team specialized in real estate investing in African countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Lagos. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At TheAfricanVestor, we explore the Nigerian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Lagos, Abuja, and Port Harcourt. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Which neighborhoods and property types should I consider when calculating average rent in Lagos today?

Lagos rental market averages should include five key neighborhood tiers and six main property types to reflect true market conditions.

Prime neighborhoods include Victoria Island, Ikoyi, and Lekki Phase 1, which drive price discovery for luxury and executive housing segments. These areas represent the highest-value transactions and set benchmarks for premium rental rates across Lagos.

Central and tech hub areas like Yaba and Surulere provide mid-market reference points, especially important for young professionals and the growing tech sector workforce. These locations offer balanced rent-to-value ratios and consistent demand patterns.

Standard emerging areas such as Ikeja, Ogba, Agege, Ikorodu, and Ibeju-Lekki represent the mainstream rental market where most Lagos residents actually rent. These neighborhoods provide essential data points for calculating realistic market averages.

Essential property types for market analysis include studios/self-contained units, 1-2 bedroom apartments (both standard and serviced), townhouses/duplexes, detached houses, and luxury condos/high-rises.

What are current monthly asking and achieved rents by property type across key Lagos areas?

As of September 2025, Lagos rental rates vary dramatically by location and property type, with achieved rents typically 10-15% below initial asking prices.

Area	Studio/Self-Contain	1-Bed Apartment	2-Bed Apartment	3-Bed Apartment	Townhouse/Duplex	Detached House
Victoria Island	₦700k-₦1.2M	₦1M-₦2.5M	₦2M-₦5M	₦3M-₦9M	₦10M-₦20M	₦20M+
Ikoyi	₦800k-₦2.5M	₦1.5M-₦3.5M	₦2.5M-₦5M	₦3.5M-₦9M	₦18M-₦50M	₦20M+
Lekki Phase 1	₦600k-₦1.5M	₦1.3M-₦2.5M	₦1.8M-₦3.5M	₦2.5M-₦4M	₦4M-₦8M	₦10M+
Yaba	₦600k-₦850k	₦850k-₦1.3M	₦1.3M-₦1.8M	₦1.7M-₦2.8M	₦2.5M-₦3M	₦3M+
Ikeja	₦700k-₦1.2M	₦1M-₦2M	₦1.5M-₦3M	₦2M-₦3.5M	₦4M-₦8M	₦10M+

Luxury condos in Victoria Island and Ikoyi start at ₦2.5 million monthly, while similar properties in Lekki begin around ₦1.8 million. Modern builds and waterfront locations command 20-40% premiums above these ranges.

Achieved rents typically fall 5-10% below asking prices in prime areas due to negotiation, while secondary locations see 10-20% reductions from initial asking rates.

How do rental rates vary by unit size and price per square meter across different areas?

Lagos rental rates per square meter reveal significant disparities between prime and secondary locations, with luxury areas commanding up to five times higher rates.

Victoria Island and Ikoyi command ₦500,000-₦1,000,000 per square meter annually, with luxury waterfront properties reaching the upper end of this range. These areas maintain premium pricing due to proximity to business districts and superior infrastructure.

Lekki Phase 1 averages ₦300,000-₦600,000 per square meter annually, offering better value while maintaining good access to business centers and modern amenities. This positioning makes Lekki attractive for professionals seeking premium housing at moderate premiums.

Yaba and Ikeja average ₦200,000-₦350,000 per square meter annually, providing the best value proposition for young professionals and growing families. These areas offer reasonable commute times with significantly lower housing costs.

Townhouses and luxury condos typically carry 15-25% premiums per square meter due to enhanced amenities, security systems, and modern building standards.

What are the total monthly costs for tenants and net income for landlords in Lagos?

Total tenant costs in Lagos extend well beyond base rent, with additional charges adding 25-40% to monthly housing expenses.

Base rent represents 60-75% of total tenant costs, with service charges adding ₦200,000-₦800,000 annually depending on estate quality and amenities. Premium estates in Victoria Island and Ikoyi charge higher service fees due to enhanced security, power backup, and maintenance standards.

Monthly utilities typically cost ₦20,000-₦60,000 for electricity, water, and waste management, with higher-end properties requiring more due to air conditioning and larger spaces. Estate dues add another ₦10,000-₦50,000 monthly for gated communities.

Upfront costs include agency fees (10% of annual rent) and legal fees (5% of annual rent), creating significant initial cash requirements. Property taxes add 0.4%-0.75% of property value annually.

Landlord net income calculations must account for service charges (when included), maintenance costs (₦20,000-₦100,000 monthly), vacancy periods (typically 5-15% annually), and letting fees deducted from first year's rent.

It's something we develop in our Nigeria property pack.

What are the one-time acquisition and financing costs I should model for Lagos properties?

Lagos property acquisition involves substantial upfront costs beyond purchase price, with closing costs typically adding 5-10% to total investment.

Property Type	Victoria Island	Ikoyi	Lekki Phase 1	Yaba/Ikeja
2-Bed Apartment	₦100M-₦150M	₦150M+	₦60M-₦100M	₦35M-₦45M
4-Bed Duplex	₦140M-₦220M	₦250M+	₦94M-₦160M	₦60M-₦120M
Detached House	₦180M-₦300M	₦300M-₦1B	₦130M-₦400M	₦80M-₦250M
Luxury Condo	₦250M+	₦850M+	₦160M+	N/A

Mortgage rates range from 15-27% annually for naira-denominated loans through local banks, while USD-linked international products offer 6.5-7% rates for qualified borrowers. Down payments typically require 10-30% of purchase price.

Closing fees include stamp duty (1% of price), agency commissions (5-10%), registration fees (0.4-0.5%), legal fees (1-2%), and survey/inspection costs. These combined costs add ₦5-15 million to typical mid-market purchases.

Renovation costs vary dramatically, with new builds requiring minimal investment while older properties may need ₦1-15 million in updates depending on condition and desired standards.

What are realistic short-term versus long-term rental strategies for different Lagos property types?

Short-term and long-term rental strategies perform differently across Lagos submarkets, with location and property type determining optimal approaches.

1. **Victoria Island and Ikoyi properties excel in short-term luxury rentals** targeting corporate executives, diplomats, and business travelers willing to pay premium rates for convenience and prestige.2. **Lekki Phase 1 offers balanced opportunities** for both strategies, with family-oriented long-term rentals and weekend/vacation short-term bookings performing well.3. **Yaba properties favor long-term rentals** to tech workers, students, and young professionals seeking affordable, well-connected housing near major employment centers.4. **Ikeja serves mixed markets** with business travelers supporting short-term demand while professionals and families anchor long-term rental income.5. **Short-term rentals generate 2-3 times monthly revenue** compared to long-term leases but require active management, higher operational costs, and dealing with occupancy fluctuations.

Executive suites and luxury condos in prime areas achieve highest short-term returns, while standard apartments in secondary locations perform better as long-term investments with stable occupancy.

Can you provide specific rent examples and occupancy rates for representative Lagos units?

Representative Lagos rental units demonstrate varying performance metrics across different property types and locations, providing practical benchmarks for investment analysis.

Unit Type	Monthly Rent	Average Occupancy	Gross Yield Range	Management Intensity
1-bed VI condo	₦2.1M	85%	3-5%	Medium
3-bed Lekki duplex	₦3.0M	80%	5-7%	Low
4-bed Ikoyi house	₦9M	75%	3-4%	Low
2-bed Yaba flat	₦1.3M	90%	7-9%	Medium
Studio Ikeja	₦900k	85%	8-10%	High

Victoria Island condos achieve premium rents but face higher vacancy periods due to selective tenant base and economic sensitivity. Luxury properties require longer marketing periods but command stable rates once occupied.

Lekki duplexes offer balanced performance with family tenants providing stable long-term occupancy. These properties appeal to corporate executives and growing families seeking modern amenities with reasonable commute times.

Yaba apartments maintain highest occupancy rates due to strong demand from tech workers, students, and young professionals. Lower rents ensure consistent demand across economic cycles.

Who are the primary renter profiles in each Lagos submarket and what amenities drive rent premiums?

Lagos rental markets serve distinct tenant profiles with specific amenity preferences that significantly impact achievable rents.

Victoria Island and Ikoyi attract corporate staff, expats, diplomats, C-suite executives, and high-net-worth individuals seeking prestige locations. Key amenities include 24/7 security, backup power systems, gyms/pools, serviced apartments, and proximity to central business districts.

Lekki and Ikeja serve young professionals, mid-to-senior executives, and families prioritizing modern living standards with reasonable commute times. Essential amenities include reliable power, transport links, modern kitchens, adequate parking, and children's facilities.

Yaba primarily houses students, tech workers, and startup employees seeking affordability near major institutions and employment centers. Critical amenities include affordability, high-speed internet, proximity to universities and tech hubs.

Outer areas serve working-class residents and large families requiring basic amenities at affordable rates. Priority amenities include affordability, basic utilities, and transport connections.

Security systems, reliable power supply, and modern fittings consistently command 15-25% rent premiums across all submarkets. Swimming pools and gyms add 10-20% premiums in prime areas but have minimal impact in secondary locations.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Nigeria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are current vacancy rates and time-to-let periods across different Lagos areas and property types?

Lagos vacancy rates and letting periods vary significantly by location and property type, with prime areas showing lower vacancy but longer marketing periods.

Prime areas (Victoria Island, Ikoyi) maintain 3-7% vacancy rates with 2-5 weeks average time-to-let due to selective tenant base and higher rent levels. These areas benefit from consistent corporate and expat demand but face extended marketing for overpriced units.

Mainland areas (Yaba, Ikeja, Surulere) experience 7-15% vacancy rates with 4-9 weeks time-to-let reflecting broader market conditions and price sensitivity. Economic fluctuations impact these areas more significantly.

Seasonal patterns affect short-term rentals more than long-term leases, with December and March showing peak demand for executive suites and Airbnb properties. Long-term residential leases maintain steadier demand throughout the year.

Luxury properties face higher volatility in vacancy rates due to limited qualified tenant pool and economic sensitivity. Standard apartments in well-connected areas maintain most consistent occupancy levels.

It's something we develop in our Nigeria property pack.

Based on current data, which area and property combinations offer the best risk-adjusted returns?

Lagos rental market analysis reveals specific combinations of location, property type, and strategy that optimize risk-adjusted returns for different investor profiles.

Two-to-three bedroom apartments in Yaba and Ikeja provide highest risk-adjusted returns due to favorable price-to-rent ratios and consistent tenant demand from tech workers and professionals. These properties offer 7-9% gross yields with 85-90% occupancy rates.

Lekki townhouses and duplexes deliver balanced capital appreciation potential with strong rental income, appealing to investors seeking moderate risk and steady cash flow. These properties benefit from infrastructure development and growing family demographics.

Short-term luxury condos in Victoria Island and Ikoyi generate highest cash-on-cash returns for investors capable of active management and handling occupancy fluctuations. These require substantial capital but offer 15-25% returns when properly managed.

Mainland studio and one-bedroom apartments provide entry-level investment opportunities with quick tenant turnover but consistent demand. These properties suit investors seeking lower capital requirements with moderate returns.

Mixed-use properties in emerging areas like Ibeju-Lekki offer long-term appreciation potential but require higher risk tolerance and longer investment horizons.

What are current gross and net yields by area, and how have they changed over recent years?

Lagos rental yields reflect the ongoing tension between rising property prices and rent growth, with different areas showing varying performance trends.

Prime areas (Victoria Island, Ikoyi) currently deliver net yields of 3-5%, down from 5-7% in 2020 due to significant property price appreciation outpacing rent growth. These areas attract investors seeking capital appreciation over rental income.

Mid-market areas (Lekki, Ikeja) provide 6-8% net yields, representing a 1-2 percentage point decline from 2020 levels. These locations offer better balance between income and appreciation potential.

Secondary areas (Yaba, outer mainland) occasionally achieve 8-10% net yields when properties are well-managed and properly positioned. These areas maintain higher yields due to lower entry costs and consistent rental demand.

Yield compression across all segments reflects inflation, population growth, infrastructure investments, currency volatility, increased mortgage costs, and continued influx of corporate relocations and expatriate workers.

Five-year trend analysis shows yields declining 1-2% annually in prime areas while secondary locations maintain relatively stable yield ranges due to affordability constraints.

What are the rental and yield forecasts for Lagos compared to peer African cities?

Lagos rental market forecasts indicate continued growth driven by population expansion and economic development, with yields expected to outperform several peer African cities.

Area	2025 Rent Growth	5-Year Yield Forecast	10-Year Yield Forecast	Peer City Comparison
VI, Ikoyi	+4-8%	3-5%	5-7%	Similar to Nairobi, Accra premium
Lekki, Ikeja	+7-10%	5-8%	7-10%	Competitive with Johannesburg
Yaba, Mainland	+8-15%	8-10%	10%+	Outperforming Abidjan, Dakar

Lagos benefits from Nigeria's economic diversification, technology sector growth, and infrastructure development projects including new airports, rail systems, and port expansions. These factors support rental growth above regional averages.

Compared to Nairobi and Accra, Lagos offers similar premium market yields but better mainland market opportunities. Johannesburg provides comparable mid-market yields but Lagos shows stronger growth momentum.

Population growth projections suggest Lagos will maintain rental demand pressure across all segments, supporting yield stability even as property prices appreciate. Infrastructure investments will likely benefit outer areas disproportionately.

Currency stability and economic policy reforms remain key variables affecting long-term forecasts, with continued economic growth supporting rent increases above inflation rates.

It's something we develop in our Nigeria property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Airroi Lagos Property Report
2. TheAfricanVestor Lagos Price Forecasts
3. ShortletHomes Lagos Locations Guide
4. PrivateProperty.ng Yaba Listings
5. Nigeria Property Centre Short-lets Guide
6. ThisDay Live Lagos Housing Report
7. GetCrib Affordable Areas Guide
8. LandsofNigeria Affordable Neighborhoods
9. PropertyPro Victoria Island Rentals
10. TheAfricanVestor Lagos Market Data