The cost of renting a two-bedroom apartment in some of Lagos Island’s most sought-after neighbourhoods has continued to climb, with annual rates reaching as high as N17.25 million in 2026.
This is contained in the 2026 Lagos Island Residential Market Report released by Lagos Realty and sighted by Nairametrics on Sunday.
The report examined rental charges, property values and land prices between 2022 and 2026 across four major residential locations — Ikoyi, Victoria Island, Lekki Phase 1 and Ikate.
Its findings show that rents have risen substantially in all four areas over the four-year period, with Ikoyi emerging as the most expensive market.
Ikate currently records the lowest average annual rent for a two-bedroom apartment at N8.5 million, while Lekki Phase 1 stands at N10 million. Victoria Island follows at N15 million, with Ikoyi topping the list at N17.25 million.
Ikate – N8.5m
The average yearly rent for a two-bedroom apartment in Ikate has risen to N8.5 million in 2026, compared with N3 million four years earlier.
That represents a 183.33 per cent increase.
According to the report, the neighbourhood, which sits east of Lekki Phase 1 and stretches towards the Atlantic coastline, has undergone rapid residential transformation.
Many areas that previously consisted largely of low-density housing now feature apartment blocks, gated estates and other modern residential developments.
The report also noted that Ikate has become an option for renters seeking accommodation on the Island at a lower cost, including people moving from other parts of Lekki and those renting on the Island for the first time.
Lekki Phase 1 – N10m
In Lekki Phase 1, the average annual rent for a two-bedroom apartment has reached N10 million, compared with N4 million in 2022.
This amounts to a 150 per cent increase.
The report identified Lekki Phase 1 as the busiest of the four markets in terms of property transactions, attracting a wide range of tenants, including young professionals, families and Nigerians returning from the diaspora.
It attributed the area’s rental activity to continued housing development, improving infrastructure and its comparatively lower cost when measured against Ikoyi and Victoria Island.
Victoria Island – N15m
Victoria Island has also recorded a sharp rise in rental prices, with a two-bedroom apartment now averaging N15 million per year.
In 2022, the average stood at N6.57 million, indicating a 128.31 per cent increase.
The neighbourhood remains a major business and residential hub, hosting multinational firms, financial institutions, diplomatic missions and premium office spaces.
The report said these features continue to attract corporate tenants, expatriates and young professionals who work within Lagos Island.
It also highlighted the development of new mixed-use residential projects around the Eko Atlantic axis and Ozumba Mbadiwe corridor, as well as the redevelopment of older properties.
Ikoyi – N17.25m
Ikoyi recorded the highest rental figure among the four locations, with a two-bedroom apartment now going for an average of N17.25 million annually.
The rate increased from N8 million in 2022, representing a 115.63 per cent rise.
The report linked the area’s premium rental market to its concentration of luxury homes and its appeal to diplomats, top corporate executives, expatriates and high-income residents.
It further observed that some luxury apartments in Ikoyi are quoted in US dollars, while newly completed developments have expanded the supply of high-end housing.
Strong demand from corporate tenants and couples, combined with limited available land and the pace of new housing construction, were identified as factors influencing prices.
Overall, the report shows that annual rents for two-bedroom apartments across the four locations now range between N8.5 million and N17.25 million.
All four areas have recorded more than a twofold increase in rental costs since 2022, with Ikate posting the biggest percentage jump at 183.33 per cent.
The figures underline the growing cost of housing in some of Lagos’ prime residential districts, as demand continues to rise while the supply of new homes remains under pressure.
