Activities of real estate speculators and growing rural-urban migration have continued to drive housing rental prices up across major cities in Nigeria.
Market data covering November 2025 to May 2026 showed that rents climbed between 15 and 75 per cent year-on-year across residential segments, driven by rising inflation, severe housing shortages, rapid urban migration and sustained demand from professionals and expatriates.
Chairman, Nigerian Institution of Estate Surveyors and Valuers, Lagos Chapter, Tosin Kadiri, said that some rental values were driven more by speculation than by market fundamentals.
According to Kadiri, some rental values were being fixed on rumours without any scientific basis.
Analysts warned that the sharp increases are worsening affordability pressures for middle-income households already struggling with rising food and transportation costs.
In Lagos, Nigeria’s commercial capital, the average monthly rent for a one-bedroom apartment rose to about N185, 000, while two-bedroom apartments averaged N530, 000 monthly. Current market prices, however, have climbed as high as N1.2 million annually for a one-bedroom apartment and between N2 million and N3 million for a two-bedroom apartment, depending on location.
Prime districts such as Ikoyi and Victoria Island recorded annual rents ranging from N3 million to as high as N30 million for luxury three-bedroom apartments, reflecting increases of between 25 and 75 per cent over the past year.
Property consultants noted that rents in some Lagos neighbourhoods have jumped by more than 150 per cent within two years as demand continues to outstrip supply. In high-end areas such as Lekki, Ikoyi and Victoria Island, additional agency, legal and caution fees now add between 25 and 40 per cent to total rental costs, placing further pressure on tenants.
Stakeholders also dismissed the Lagos State Government’s proposed rental moderation policy. Immediate past President of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Victor Alonge, argued that the government lacks the housing stock needed to influence market prices.
“The government cannot control what it does not have. Just as the Rent Edict failed in the past, this proposed rental regime in Lagos will also fail woefully because the underlying problem of inadequate housing supply has not been addressed,” Alonge said.
The situation in Abuja remained similarly severe. The growing number of residents living under bridges in the Federal Capital Territory highlighted the deepening accommodation crisis, as many displaced residents continue to pay informal fees for unsafe shelter despite exposure to theft, violence, reptiles and insect bites.
The high cost of accommodation, analysts said, has increasingly dehumanised many Nigerians, while the Federal Government’s intervention through the Renewed Hope Housing programme has remained inadequate compared to the scale of demand.
Before the latest surge, satellite towns outside Abuja recorded average monthly rents of about N210,000 for one-bedroom apartments, while two-bedroom apartments averaged nearly N375,000 monthly. In premium districts such as Maitama and Wuse, annual rents for three-bedroom apartments ranged from N7 million to N22 million, representing year-on-year increases of between 13 and 22 per cent.
Operators attributed the sustained growth in Abuja rents to rising demand from government officials, diplomats, international organisations and corporate executives seeking accommodation close to the city centre.
Although the pace of increase in Abuja remained below that of Lagos, experts warned that limited housing delivery continues to fuel upward pressure on rents.
Compared with Lagos and Abuja, cities such as Port Harcourt and Kano remained relatively more affordable despite steady increases.
In Port Harcourt, estimated rents for flats ranged between N25,000 and N28,000 monthly
