The average annual rent for a two-bedroom apartment in some of Lagos Island’s major residential neighbourhoods has risen sharply, with Ikoyi recording the highest rate at N17.25 million in 2026.
A residential market report by Lagos Realty, reviewed by Nairametrics, examined rental prices, property values and land costs across Ikoyi, Victoria Island, Lekki Phase 1 and Ikate between 2022 and 2026.
The report showed that average annual rent for a two-bedroom apartment now stands at N8.5 million in Ikate, N10 million in Lekki Phase 1, N15 million in Victoria Island and N17.25 million in Ikoyi.
Ikate recorded the largest increase over the period, rising from N3 million in 2022 to N8.5 million in 2026 — an increase of 183.33 per cent.
In Lekki Phase 1, the average rent rose from N4 million to N10 million, representing a 150 per cent increase.
Victoria Island recorded an increase from N6.57 million in 2022 to N15 million in 2026, translating to a 128.31 per cent rise.
Meanwhile, Ikoyi’s average two-bedroom rent climbed from N8 million to N17.25 million, an increase of 115.63 per cent.
The report attributed the rising rental costs to growing demand, limited land availability and continued residential development across the Lagos Island corridor.
It noted that Ikoyi continues to attract diplomats, senior executives, expatriates and high-income households, while Lekki Phase 1 and Ikate have become increasingly popular among young professionals, families and first-time Island renters.
The report also observed that new housing supply remains below the level required to meet the wider housing demand across the Lagos Island market.