The average annual rent for a two-bedroom apartment in some of Lagos Island’s major residential areas has risen to as high as N17.25 million in 2026, according to a new residential market report.

The Lagos Island Residential Market Report 2026 by real estate company Lagos Realty , seen by Nairametrics on Sunday, tracks rental prices, property sales values and land costs across four major submarkets between 2022 and 2026.

The report covers Ikoyi, Victoria Island, Lekki Phase 1 and Ikate, with rental prices recording significant increases across all four locations.

According to the report, “Ikoyi has an average annual rent of N17.25 million for a two-bedroom apartment in 2026, making it the highest among the four Lagos Island submarkets covered in the report.”

Ikate recorded the lowest average rent among the four areas at N8.5 million annually, followed by Lekki Phase 1 at N10 million, Victoria Island at N15 million and Ikoyi at N17.25 million.

Ikate – N8.5m

Ikate has an average annual rent of N8.5 million for a two-bedroom apartment in 2026, according to the report.

The figure represents a 183.33 per cent increase from N3 million recorded in 2022.

The report said the area, located immediately east of Lekki Phase 1 and along the Atlantic coastline, had experienced significant residential development in recent years.

Low-density housing has increasingly given way to apartment towers and gated residential schemes, contributing to the growth of the rental market.

The report noted that Ikate had attracted first-time Island renters and tenants relocating from Lekki in search of relatively lower rental costs.

Lekki Phase 1 – N10m

A two-bedroom apartment in Lekki Phase 1 now costs an average of N10 million annually.

The figure represents a 150 per cent increase from N4 million in 2022.

The report described Lekki Phase 1 as the most transactionally active of the four submarkets, with a broad renter base comprising young professionals, families and returning members of the diaspora.

It said expanding residential development, infrastructure improvements and the area’s relative affordability compared with Ikoyi and Victoria Island were among factors shaping its rental market.

Victoria Island – N15m

Victoria Island recorded an average annual rent of N15 million for a two-bedroom apartment in 2026, up from N6.57 million in 2022.

This represents a 128.31 per cent increase over the four-year period.

The area combines a major commercial district with a substantial residential market and is home to Grade A offices, multinational companies, banks and diplomatic missions.

The report said this had helped sustain demand from corporate tenants, expatriates and young professionals working on Lagos Island.

It also pointed to the construction of new mixed-use residential towers around the Eko Atlantic boundary and Ozumba Mbadiwe corridor, alongside the redevelopment of older low-rise properties.

Ikoyi – N17.25m

Ikoyi emerged as the most expensive of the four Lagos Island submarkets, with the average annual rent for a two-bedroom apartment reaching N17.25 million in 2026.

The figure represents a 115.63 per cent increase from N8 million in 2022.

The report said, “Ikoyi has an average annual rent of N17.25 million for a two-bedroom apartment in 2026, making it the highest among the four Lagos Island submarkets covered in the report.”

The area has a high concentration of luxury residential properties and is home to diplomats, senior corporate executives, expatriates and high-income households.

According to the report, luxury residential units in Ikoyi are frequently priced in US dollars, while newer developments have expanded the range of apartments available to upper-income professionals.

It attributed the rental growth partly to demand from corporate tenants and couples, while limited land availability and the pace of new residential completions continue to shape the market.

The report’s figures show that the average annual rent for a two-bedroom apartment across the four Lagos Island markets now ranges from N8.5 million in Ikate to N17.25 million in Ikoyi.

Compared with 2022, the data indicates that rental costs have more than doubled across all four submarkets, with Ikate recording the largest percentage increase at 183.33 per cent.

The development highlights the continued rise in housing costs in some of Lagos’ most sought-after residential locations, amid growing demand and limited new housing supply. (PUNCH)

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