Many Lagos residents are groaning below sharp lease hikes, with some residences seeing will increase of as much as 80% or extra in only a 12 months.
This arises as housing calls for proceed to exceed provide, leaving many households trapped, struggling to fulfill new rental obligations or going through the expensive different of relocation.
In Mushin Olosha, Abosede Sanya noticed her two-bedroom flat lease bounce by 87.5%, from N800,000 to N1.5 million per 12 months.
Regardless of a 20% rise in her family earnings, the brand new price strained her price range. “I stayed as a result of different residences now cost related quantities,” she instructed Nairametrics, including that relocation would imply additional prices: company charges, lease agreements, and property damages.
Abosede’s story mirrors the expertise of hundreds throughout Lagos, from Ogba to Ikorodu, the place tenants face lease spikes with few viable choices.
Trapped tenants and a good rental market
Throughout the metropolis, tenants instructed Nairametrics that steep lease changes are leaving them cornered. In Ogba, actual property agent Temidayo Ademosu of Arrowhead Houses and Properties mentioned a two-bedroom flat that rented for N400,000 was pegged at N800,000 after the tenant moved out.
“For potential tenants attempting to barter, the lease would possibly drop to N600,000, however comparable items with minor enhancements already go for N1.5 million to N2 million,” Ademosu mentioned.
He added that whereas some landlords historically wait till the third 12 months of a tenancy earlier than reviewing rents, others regulate earlier in response to inflation and market circumstances.
“There’s an condominium in my portfolio rented for N7.5 million yearly that has stayed the identical for 2 years; it varies extensively,” he famous.
In Ikorodu’s Olorijo Maya, Daniel Kornwi has paid N150,000 yearly since 2023, however neighbours who’ve lived longer noticed rents double to N300,000. Equally, in Igbogbo, Samuel Etefia reported a 50% enhance in his three-bedroom condominium, from N700,000 to N1.05 million, after the owner upgraded it with plaster-of-Paris ending.
In Akute, an Ogun State suburb sharing boundary with Lagos, resident Michael Gbenga confronted a 103% enhance from N320,000 to N650,000 inside two years.
“I don’t plan to maneuver but as a result of different homes are both unavailable or overpriced,” he mentioned.
For a lot of Lagosians, excessive relocation bills compound the issue. Company commissions, lease renewals, and restore prices make staying put, even with a strained price range, the one sensible selection.
Past Lagos: Abuja and Port Harcourt really feel the warmth
The lease surge extends past Lagos. In Abuja’s Nyanya district, Opeyemi Toriola noticed his one-room self-contained condominium rise from N400,000 to N750,000. “Even on the outskirts, you’ll be able to’t get an analogous place under N1.2 million now,” he mentioned.
In Port Harcourt, Temple Ugwu, Principal Companion at Blumeen Companions, lately reviewed rents on six three-bedroom flats in Rumuokoro from N500,000 to between N800,000 and N900,000. He mentioned that after deliberate renovations, rents may attain N2 million inside two years.
Ugwu added that his personal residence in Elelenwo, a three-bedroom flat, rose from N700,000 to N1 million, aligning with different items within the compound. “Inside just a few years, it may attain N1.5 million,” he mentioned, citing inflation and market changes.
Market forces driving lease hikes
The lease escalation throughout Nigerian cities stems from deep structural imbalances, restricted provide, surging demand, and macroeconomic pressures.
In accordance with The State of Lagos Housing Market Vol. 3 Report, Lagos’ inhabitants grew from 21 million in 2016 to a projected 24 million by 2025.
- Nonetheless, the variety of formal rental households stagnated at 1.38 million. Regardless of 750,000 new households forming in the identical interval, the share of renters declined from 83% to 77%, suggesting that affordability challenges are pushing many into casual or overcrowded housing.
- The report estimates that Lagos wants about 227,576 new houses yearly to fulfill demand and change ageing inventory, but precise supply falls far quick.
Nationally, the Minister of Housing and City Improvement, Arc. Ahmed Musa Dangiwa famous that Nigeria requires 550,000 new housing items yearly, costing roughly N5.5 trillion yearly for the following decade to shut the deficit.
- The mismatch between provide and demand continues to gasoline rental inflation, particularly in financial hubs like Lagos, Abuja, and Port Harcourt.
Ugwu of Blumeen Companions defined that landlords should steadiness upkeep prices and funding returns. “Whether or not a constructing is 40 years previous or new, it’s nonetheless a enterprise. Rents should mirror inflation, market charges, and upkeep prices,” he mentioned.
Ademosu added that whereas many landlords observe a casual three-year window earlier than evaluations, financial volatility has shortened that cycle.
Authorized protections and enforcement gaps
Whereas lease will increase are authorized, the Lagos State Tenancy Regulation of 2011 restricts arbitrary changes. Landlords are required to seek the advice of tenants earlier than elevating lease, and below Part 37(1), tenants might problem unreasonable hikes in courtroom.
- The legislation instructs judges to contemplate comparable native rents, the owner’s justification, and particular circumstances earlier than approving any enhance. Nonetheless, many tenants stay unaware of those rights, and enforcement stays weak.
- On the federal degree, the Home of Representatives has really useful capping lease hikes at 20% of current lease and known as for higher funding in reasonably priced housing. Equally, the Lagos State Home of Meeting has urged stricter enforcement and public consciousness to stop exploitation.
Nonetheless, with housing provide tight and financial circumstances worsening, the legislation presents little reduction for a lot of. As landlords regulate rents to match inflation, tenants discover themselves bearing the brunt of Nigeria’s deepening housing disaster.
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