By Ghazali Ibrahim
Lagos has emerged as one of the world’s most expensive cities for luxury rentals, with high-end two-bedroom apartments costing an average of $19,379 a year.
The figure places Nigeria’s commercial capital fourth among 10 cities ranked for luxury two-bedroom rental costs in 2026, according to a recent Nairametrics report.
But for tenants seeking ultra-luxury accommodation in some of Lagos’ most exclusive neighbourhoods, the price is far steeper.
The report said premium properties along Bourdillon, Alexandra and Gerrard roads in Ikoyi can attract annual rents of up to $130,000.
Luxury apartments in Ikoyi, Victoria Island and Banana Island are also commonly priced in dollars, exposing tenants to the impact of naira depreciation.
Nairametrics attributed Lagos’ soaring rental costs to limited land, strong demand in prime locations, rising construction expenses, speculation and currency devaluation.
The financial burden does not end with rent. Tenants often have to pay rent months or years in advance, alongside agency, legal and agreement fees.
Agency charges can range from one to two months’ rent or 10 per cent of annual rent, while legal and agreement fees can add another five to 10 per cent.
Other costs include caution deposits, stamp duty, utility deposits, internet installation and service charges.
The report also noted that the cost of developing properties has surged, with cement now selling for about N12,500 to N15,000 per bag, compared with N5,000 to N6,000 at the end of 2023.
Reinforcement steel, it added, now costs between N1m and N1.5m per tonne.
The rising costs are forcing developers to reduce apartment sizes, seek cheaper locations, use alternative materials and phase construction projects.
Yet the pressure comes as Lagos faces a housing deficit estimated at 3.4 million units.
The report said the state needs about 227,576 new homes every year simply to keep pace with population growth and replace ageing housing stock.
For many Lagos residents, therefore, the city’s luxury property boom is unfolding alongside an increasingly difficult struggle to find affordable accommodation.
