LAGOS ISLAND TWO-BEDROOM RENT SOARS TO N17.25M – REPORT
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By:Tajudeen Aminat
The average yearly rent for a two-bedroom apartment in some of Lagos Island’s prime residential districts has climbed to N17.25 million in 2026, according to a new property market report.
The Lagos Island Residential Market Report 2026, released by Lagos Realty and reviewed by Nairametrics, examined rental rates, property values and land prices across four key Lagos Island submarkets between 2022 and 2026.
The report covered Ikoyi, Victoria Island, Lekki Phase 1 and Ikate, revealing sharp increases in rental costs across all locations during the period under review.
Ikoyi emerged as the most expensive market, with the average annual rent for a two-bedroom apartment reaching N17.25 million in 2026.
Among the four locations, Ikate recorded the lowest average rent at N8.5 million per year, followed by Lekki Phase 1 at N10 million and Victoria Island at N15 million.
In Ikate, the average annual rent rose from N3 million in 2022 to N8.5 million in 2026, representing a 183.33 per cent increase. The report attributed the growth to rapid residential development, including the rise of apartment complexes and gated estates that have replaced many low-density housing units.
The area has also become attractive to first-time Island residents and tenants seeking more affordable alternatives to Lekki Phase 1.
Lekki Phase 1 recorded an average annual rent of N10 million for a two-bedroom apartment in 2026, up from N4 million in 2022, marking a 150 per cent increase.
According to the report, the area remains one of the busiest residential markets on Lagos Island, attracting young professionals, families and returning diaspora Nigerians. Improved infrastructure, ongoing housing development and relatively lower rental costs compared to Ikoyi and Victoria Island have continued to drive demand.
Victoria Island posted an average annual rent of N15 million for a two-bedroom apartment, compared to N6.57 million in 2022, reflecting a 128.31 per cent increase over four years.
The report noted that Victoria Island’s status as a major commercial hub, home to multinational firms, financial institutions and diplomatic missions, has sustained demand from expatriates, corporate tenants and professionals. It also highlighted the development of mixed-use residential towers around Eko Atlantic and the Ozumba Mbadiwe corridor, as well as the redevelopment of older properties.
Ikoyi remained the most expensive residential market among the four surveyed areas, with rents increasing from N8 million in 2022 to N17.25 million in 2026, a rise of 115.63 per cent.
The report attributed the growth to strong demand from corporate tenants, expatriates and high-net-worth individuals, as well as the concentration of luxury housing developments within the area.
Overall, the report showed that average annual rents for two-bedroom apartments across the four Lagos Island submarkets now range from N8.5 million in Ikate to N17.25 million in Ikoyi.
Compared to 2022, rental costs have more than doubled across all four locations, with Ikate recording the highest percentage growth. The findings underscore the continued increase in housing costs across some of Lagos’ most sought-after residential districts, driven by rising demand and limited housing supply.
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