The average rent is 720,000 naira in Lagos, 10 states
The average rent for a three-bedroom apartment in Nigeria has reached a new record high of 750,000 naira, findings have found. The punch Detected.
A comprehensive assessment of the average rent for a three-bedroom apartment in 15 major cities in the country, with prices sourced from propertypro.ng and estate agents, showed that the cost of a three-bedroom apartment in Lagos, Abuja and Port Harcourt comes to N1.5m. annually.
Minna, Lokoja and Ilorin were among the major cities with the lowest rental rates in this category, with a three-bedroom apartment going for as low as 300,000 naira in Lokoja.
Other major cities surveyed are Jalingo, Asaba, Keffi, Enugu, Makurdi, Uyo and Gusau.
Average market rent represents equidistant rent, by unit type(s) as determined in the annual rent survey for a given period. The survey collects average prices in different parts of the geographic area with the aim of arriving at a midpoint between the highest and lowest rental prices.
Experts attributed the increase in rental prices across the country to the high cost of building materials and maintenance.
According to Michael Ajibola, a Lagos-based real estate broker, property developers have been forced to confront the skyrocketing cost of doing business.
This has made property developers raise rents because they need to recover costs and maintain profit margins, he said.
“In terms of affordability, I work with some of these developers, and one thing you hear is, ‘There’s nothing like affordability in real estate.’ And that’s what you hear these days,” he said.
“You can’t blame this. It boils down to the dollar and how it affects some of these construction projects. For the average rent, Lagos is an odd place. But if you look at the six geopolitical zones, the rent is not affordable anywhere. So, it has to People have to go the extra mile (to pay their rent) and that creates real stress.
Ajibola also stated that in the current economic circumstances, property developers have prioritized construction for high-income earners at the expense of the masses.
He urged the government to launch more housing plans that would benefit low-income people.
Likewise, Philemon Noyes, an Enugu-based real estate agent, noted that rental prices in the state have increased by more than 50 percent in the past three years.
Also speaking, a source at a company that manufactures aluminum doors and windows, who requested anonymity, said that the harsh business environment caused by the inability to access foreign currency and other challenges led to an increase in the prices of building materials.