Average annual rent for a three-bedroom luxury apartment in Lagos has surged to $24,208 (about ₦38 million), marking one of the steepest increases in the city’s high-end property market in recent years, a new market intelligence report has shown.
The report, released by a leading real estate research firm, attributes the rise to persistent demand for prime residential spaces in locations such as Ikoyi, Victoria Island and Lekki Phase 1 combined with a limited supply pipeline and higher construction costs driven by inflation and foreign exchange pressures.
According to the report, rents in Lagos’ luxury segment rose by between 12% and 18% year-on-year, outpacing growth in the middle-income and affordable housing markets. Analysts say the upward trend reflects the preference of multinational companies, expatriates, and high-net-worth Nigerians for premium apartment-style living.
A Lagos-based property analyst said the luxury rental market has remained resilient despite broader economic headwinds.
“The prime residential market operates on a different demand curve,” the analyst explained. “Even with rising inflation and currency volatility, the appetite for well-managed, secure and service-driven apartments remains strong.”
Landlords are also adjusting rents to reflect higher operational and maintenance costs, especially in buildings that rely heavily on diesel, power backup systems, imported fixtures and outsourced facility management.
Real estate developers say the trend underscores the widening supply gap in top-tier housing. Many ongoing luxury projects have experienced construction delays linked to FX volatility and increased material prices, further tightening availability and putting upward pressure on apartment rents.
The report notes that demand for serviced apartments—popular among corporate clients—continues to grow, with occupancy rates in prime districts averaging 85% in the first half of 2025.
Market watchers expect rents in Lagos’ luxury segment to remain elevated through the year unless stronger macroeconomic stability eases construction costs and encourages more developers to complete stalled projects.
The luxury rental surge comes as Lagos grapples with a broader housing affordability crisis, with middle-income households increasingly priced out of prime neighbourhoods and forced into less central locations.
