The Roland Igbinoba Real Foundation for Housing and Urban Development releases its latest report. This document highlights rising rents in Lagos. Specifically, the average annual rent for a three bedroom apartment in Ikoyi reaches N25 million. Moreover this surge shows pressures in the luxury market.
Key Drivers of Rent Increases
Urbanization fuels the changes. Lagos houses nearly 24 million people. The city grows at 2.5 percent each year. Additionally over 6,000 immigrants arrive daily. About half stay permanently. Therefore demand for housing intensifies.
Population projections add urgency. Experts predict over 25 million residents by late 2025. For example, this growth pushes up prices in high-end areas like Ikoyi. As a result, rents climb steadily.
Historical Price Trends
Land values transform over time. In Ibeju-Lekki, plots cost N500,000 to N1.5 million in 2013. Now they fetch N25 million to N40 million. This marks a 40-fold increase.
Lekki Phase 1 sees similar jumps. Plots sold for N10 million to N15 million in 2005. Today they exceed N400 million to N500 million. Furthermore, Eko Atlantic plots rose from N180 million in the early 2000s to over N2 billion.
Real Estate as Investment Tool
Investors view property differently. Affluent buyers and diaspora Nigerians use it for wealth building. Prices only rise without drops. Moreover delays cost more.
The market shifts from basic housing to premium assets. For instance, luxury segments attract patient capital. Thus real estate preserves and grows wealth.
Other Market Insights
Average rents vary across sources. Some reports list N35 million for three bedroom flats in Ikoyi. Others note N40 million. However the N25 million figure underscores recent surges.
Policymakers must act. The foundation urges balanced growth. In conclusion, Lagos real estate booms. Yet affordability remains a challenge for many.
