The cost of renting a home in Lagos has reached unprecedented levels, with annual prices for a single-bedroom apartment hitting a staggering ₦20.9 million in 2025. This eye-watering figure, detailed in the Lagos Residential Market Report 2025 by Edala Development, highlights a severe affordability crisis, particularly in the city's premium island districts.
Island vs Mainland: A Tale of Two Cities
The report paints a clear picture of a deeply divided rental landscape. The most extreme prices are concentrated on the affluent Lagos Island. Eko Atlantic City leads the pack with its record-breaking ₦20.9m one-bedroom rent. It is closely followed by Banana Island at ₦10 million, with Ikoyi and Victoria Island averaging ₦8 million and ₦7.5 million respectively.
In the Lekki corridor, Phase I commands an average of ₦4.5 million, while Lekki Peninsula II stands at ₦3.5 million. A significant drop is observed when crossing to the Mainland. Here, Ikeja recorded ₦3.2 million, Yaba ₦2.2 million, and both Ajah and Gbagada came in at ₦2 million for a one-bedroom unit annually.
The most affordable options were found in areas like Surulere (₦1.5m), Apapa (₦1.3m), and Ketu/Shomolu (₦1.1m each). Rents dip below the one million naira mark in Oshodi (₦840,000), Agege (₦755,000), Mushin (₦735,000), Ikorodu (₦555,000), Epe (₦400,000), and Badagry (₦358,000).
Larger Apartments Follow the Same Sky-High Trend
The rental surge is consistent across all apartment types, further squeezing tenants. For two-bedroom apartments, Eko Atlantic City again topped the chart at ₦26.6 million, with Banana Island at ₦15.5 million. Ikoyi and Victoria Island followed at ₦15 million and ₦12.5 million respectively.
Three-bedroom units saw even more dramatic figures, with Eko Atlantic averaging ₦35.3 million, Banana Island at ₦27.5 million, and Ikoyi at ₦25.5 million. Even studio apartments in prime locations remained exorbitant, costing ₦14.2 million in Eko Atlantic and ₦5.1 million on Banana Island.
Economic Pressures and a Widening Gap
Edala Development, commenting on the findings, stated that the rental explosion reflects broader economic challenges and a growing divide between the Island and the Mainland. The report noted that despite a moderation in inflation to 16.05% as of October 2025 from 33.88% in late 2024, cost pressures remain intense due to a high Monetary Policy Rate of 27%.
"Success in this market now requires more than capital; it demands insight into the widening gap between high-end Island neighborhoods and the fast-growing Mainland," the report stated. It identified specific submarkets driving activity, from the "dollar-denominated resilience" of Eko Atlantic and Banana Island to the high rental demand in Yaba and Surulere.
On a slightly positive note, the report indicated resilience in the construction sector, with a 9.9% jump in nominal output in Q1 2025 and real-term growth of 5.57% recorded in Q3 2025, according to National Bureau of Statistics (NBS) data. Looking ahead, Edala Development predicts that future housing trends will be heavily influenced by infrastructure development and the persistent struggle for affordability, shaping an ongoing debate between luxury and value in Lagos real estate.
