The cost of renting a two-bedroom apartment on Lagos Island has surged significantly, with average annual rent reaching as high as N17.25 million in some of the area's most expensive residential markets.
According to the Lagos Island Residential Market Report 2026 by real estate company Lagos Realty, Ikoyi recorded the highest average annual rent for a two-bedroom apartment at N17.25 million in 2026.
The figure represents a 115.63 per cent increase from the N8 million average recorded in Ikoyi in 2022, highlighting the sharp rise in residential property costs across the Lagos Island corridor.
Victoria Island ranked second, with the average annual rent for a two-bedroom apartment reaching N15 million, up from N6.57 million in 2022.
Meanwhile, Lekki Phase 1 recorded an average annual rent of N10 million, compared with N4 million in 2022, while Ikate remained the least expensive of the four areas covered by the report at N8.5 million annually.
The figures show that rental costs have risen substantially across all four markets, with demand, rising construction costs, higher energy expenses, currency depreciation and increasing development costs contributing to the upward pressure on property prices.
Ikoyi's position as the most expensive market is linked to its concentration of luxury residential properties and strong demand from high-income households, expatriates, diplomats and senior corporate executives.
The report's findings underscore the growing affordability challenge facing residents and prospective tenants seeking accommodation in some of Lagos' most sought-after neighbourhoods.
With a two-bedroom apartment in Ikoyi now averaging N17.25 million per year, the figure translates to an average of about N1.44 million per month when the annual rent is spread across 12 months—although Nigerian rental payments are typically made upfront rather than monthly.
The rapid increase in rental prices is expected to continue fuelling discussions about housing affordability, residential supply and the need for policies that encourage the development of quality housing across different income levels in Lagos.
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