Rising costs induced by poor macro-economic conditions, especially inflation, high interest and exchange rates and rising building materials, are making it, increasingly, hard for renters to find houses in good location with manageable rent.
Rents are pretty high nowadays and landlords, especially those in Lagos and other big cities, are taking advantage of high demand for rented accommodation to mark up their rents to levels where many renters cannot afford them.
However, there are some locations in the city which are considered good and relatively upscale that tenants can get houses to rent for between N1 million and N2 million per annum. Such locations include Ilupeju, Gbagada and Surulere. These are regarded in Lagos as middle class settlements.
Lagos is a very active rental market with over 80 percent of its 20 million population living in rented accommodation, according to Moruf Akinderu-Fatai, the state’s commissioner for housing. Of the different house-types in the city, 2-bedroom attracts the highest demand.
The reason for this, according to close market watchers, is the challenge in the economy that has seen a lot of people lose their jobs or take pay cuts. Also, two-bedroom flats are favoured by the millennials, young company executives and old people who do not need large accommodation any longer.
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The average price of 2-bedroom flats for rent in Lagos is ₦2million per annum. The most expensive flat in the city goes for about ₦14 million per annum while the cheapest costs ₦350,000 per annum.
Nigeria Property Centre, an online property barometer, estimates the number of 2-bedroom flats in the market for rent in Lagos at 1,788 units. These are the ones listed by estate agents who are everywhere in the market.
In Ilupeju, rent for 2-bedroom flats ranges from ₦1 million to ₦2 million. The average rent for this house-type here is ₦1.5 million per annum. The most expensive flat in the area goes for ₦4.9 million per annum while the cheapest costs ₦1 million per annum.
Often referred to as ‘Indian Village’, Ilupeju is located on the Lagos mainland in Mushin Local Government Area. The majority of Ilupeju’s people are from the working class. Town Planning Way, Tinubu Road, Ilupeju Bypass, Coker Road, and Ilupeju Industrial Avenue are all popular routes in the area.
The area is sought after not only because of its good road infrastructure, but also because of its accessibility and flexibility in terms of transportation and movement to other locations.
Gbagada is another good location where 2-bedroom attracts between N1million and N2 million rent. The average rent for 2-bedroom flats here is ₦1.7 million per annum while the most expensive flat rents for ₦2.9 million per annum. The cheapest flat in this location costs ₦720,000 per annum.
This neighbourhood is a vantage point in Lagos. It is located between the local governments of Kosofe and Shomolu. It is primarily a residential neighbourhood. Because of its location and accessibility, properties are quite pricey there.
In Surulere, rents are relatively higher because the area has location advantage of being close to Lagos Island which is the city’s economic hub. Average rent for 2-bedroom flats in Surulere is ₦1.6 million per annum. The most expensive flat here goes for ₦3.5 million per annum while the cheapest costs about ₦584,000 per annum.
Surulere is a residential and commercial Local Government Area located on the mainland of Lagos. Its total land area is 23 square kilometres with over 503,975 inhabitants and a population density of 21,864 inhabitants per square kilometer. The local government area is bordered by Yaba, Mushin and Ebute-Metta.
