The rental market in many Nigerian cities is apparently in crisis, putting most of the city dwellers, who are in rented accommodation, on edge.

The situation in the market is such that a good number of the city dwellers are changing address, moving further into the hinterland where affordability is said to be relatively higher.

The market has seen rising cases of rent defaults, especially from tenants who insist on remaining close to their workplaces, as they cannot keep up with the new rents being asked. In the same vein, there are higher values for real estate and other assets.

However, a report by Estate Intel, a data-driven market intelligence platform for the African real estate market, points to a few locations in Lagos where renters can find homes with ‘low’ (affordable) rents.

“The affordability of these areas is based on the assumption that the renter can commit 15-20 percent of his annual income to paying house rent, and is living within upper or lower limits of income ranging from N67,000 per month to N356,000 per month, depending on the type of job or business he does,” the report explains.

The report listed some of these areas as Ojo, Ikorodu, Alagbado, Agege, Ijaiye, Agric, Ikotun, Abule Egba, Lakowe, and Epe. Others are Ojodu Berger, Bariga, Isolo, Oyingbo, Egbeda, and Oshodi.

These areas are outside the city centre where annual rent for a self-contained apartment now stands at between N800,000 and N1.5 million, up from N400,000 per annum. Even in other cities, including Kano, Enugu, Aba, and Port Harcourt, the market has seen significant rent increases.

In Ojo, for instance, a two-bedroom apartment still goes for between N400,000 and N500,000 per annum. In Ikotun Egbe, a renter can still find a one-room self-contained apartment for N250,000 –N350,000 per annum, depending, however, on the age of the house and facilities available.

These contrast sharply with the city centre, where, in some neighbourhoods like Victoria Island, Lekki Phase 1, and Oniru, average rent for a two-bedroom apartment is approximately N530,000 per month as of early 2026.

This translates to about N6.4 million per annum. However, prices can vary significantly, ranging from N250,000 in affordable areas to N1.5 million.

The Estate Intel report notes that most of the preferred areas for living (due to closeness to office areas and city centres) are unaffordable because of the higher costs of living, pointing out that these affordable areas typically fall within the outskirts of Lagos.

“Lagos Island, for instance, is a well-known old office area in the city centre with old residential buildings. The location of these other areas is not surprising as houses closer to the city centre are expected to be more expensive,” the report noted. (BusinessDay)

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