Lagos rents soar by 91% in five years - PUNCH
JANUARY 22, 2024
By Josephine Ogundeji
Rents in Lagos have surged by 91.32 percent over the past five years, posing a challenge to residents seeking affordable housing, The PUNCH’s findings have revealed.
It was according to data obtained from prices sourced from prop-tech, propertypro.ng and estate agents in different locations.
The weighted average of the percentage increase for each location was taken to calculate the percentage increase in Lagos rents. This was done by considering the initial rents in 2019 as weights, which reflect the proportional contribution of each location to the total rent in 2019. The result represents the average growth in rent prices across the specified locations from 2019 to 2024.
An evaluation of a 2-bedroom standard apartment across 12 different parts of Lagos- Ikeja, Iyana Ipaja, Ikorodu, Surulere, Ilasa, Gbagada, Yaba, Lekki, Ajah, Epe, Magodo Phase 1, and Ikoyi showed that while a 2-bedroom apartment in the Epe area (one of the cheapest) of the state went as low as N350,000, rates went as high as N10m in the Ikoyi area of the state.
In 2019, Ikeja and Iyana-Ipaja rental rates doubled to N2,000,000 and N800,000, respectively between 2019 and 2024.
Similarly, Ikorodu witnessed a 60 percent rise from N250,000 in 2019 to N400,000 in 2024.
A developer, Femisi Balogun, told our correspondent, “Adding to this surge, the increasing costs of building materials coupled with inflation have played a significant role. Rapid urbanisation in Lagos has driven high demand for housing, and the rising costs of construction materials have contributed to the overall increase in rental prices.”
Economic growth and increased real estate investments have further fuelled this demand, creating a competitive market.
Gbagada and Magodo Phase 1 exemplify this trend, with rental prices jumping by 150 percent and 108 percent, respectively.
Oshodi-Isolo experienced a more modest increase of 37.5 percent, going from N400,000 in 2019 to N550,000 in 2024.
Yaba, Surulere, Ajah, and Lekki also saw 41 percent, 133 percent, 50 percent, and 50 percent rise to N1,200,000, N700,000, N1,800,000, and N1,800,000, respectively in 2024.
In explaining the reason behind the surge in rental rates across the state, experts blamed the current economic crunch, particularly the headline inflationary pressure, which shot up the costs of construction and maintenance.
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 said, “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.”
A civil society group under the aegis of the Take-It-Back Movement recently decried the impacts of the high rents on households’ income across the country and called for government intervention.
At a peaceful protest against the high cost of housing in the state, the group lamented the rising cost of housing, particularly in Lagos Island and other areas.
A statement by the Lagos Island chapter of TIB said the protest was strongly against the unaffordable cost of housing.
It stated, “No doubt, this is a national call to enforce housing rights. Housing is a fundamental human right, and the government must ensure it is available to all citizens.”