Nigeria News Today: Abuja, Lagos Rank Among Africa’s Most Expensive Cities for Rent as Housing Crisis Deepens
By Queen Madaki
The Bureau News reports that Nigeria’s capital, Abuja, alongside Lagos, has been ranked among the most expensive cities in Africa for rental housing, raising fresh concerns over affordability and urban displacement.
A new report by Fortren & Company, which analysed average rents for two-bedroom apartments across major African cities, placed Abidjan first, followed by Cape Town and Accra. Lagos ranked fourth, with Abuja also listed among the top expensive cities, ahead of Douala, Nairobi, Kigali, Dar es Salaam, Cairo, and Casablanca.
The Bureau News: Abuja, Lagos Face Rising Housing Pressure
In Lagos’ premium neighbourhoods such as Ikoyi, Victoria Island, and Banana Island, the average annual rent for a luxury two-bedroom apartment is estimated at about $19,379 (approximately ₦26.8 million).
In Abuja, similar high-end properties in areas like Maitama, Asokoro, and Wuse II are estimated to range between ₦10 million and ₦18 million per year for two-bedroom apartments, depending on location, finishing, and security infrastructure.
Analysts note that while Abuja rents are slightly lower than Lagos in dollar terms, the cost burden on residents remains significant due to income disparities and rising living expenses.
Nigeria News Today: Rent Inflation Hits Lagos, Abuja Residents Hard
Despite ranking fourth, Lagos is experiencing one of the fastest rent increases on the continent, with residential prices rising between 50 and 200 percent over the past two years.
Abuja is also witnessing similar upward trends, particularly in central districts, where demand from government officials, diplomats, and private sector executives continues to outstrip supply.
Housing experts warn that affordability has become a critical issue, with many renters in Lagos spending up to 70 percent of their income on accommodation—far exceeding the global benchmark of 30 percent.
In Abuja, industry estimates suggest that middle-income earners now spend between 40 and 60 percent of their income on rent, especially in well-developed districts.
Urban Migration and Rising Suburban Demand
The surge in rental costs is reshaping settlement patterns in both cities. Many residents are relocating from central urban districts to suburban areas in search of cheaper housing.
However, even in outskirts of Lagos and satellite towns around Abuja such as Lugbe, Kubwa, and Gwagwalada, rents for standard two-bedroom apartments now range between ₦1.2 million and ₦2.5 million annually.
This trend indicates that the affordability crisis is no longer limited to city centres but is spreading across wider urban regions.
Key Drivers Behind Nigeria’s Rental Crisis
Market observers attribute the rising cost of housing to several factors, including inflation, high construction costs, expensive building materials, and rising interest rates on loans.
The weakening naira has further compounded the issue, particularly in high-end markets where rents are often denominated in US dollars.
In Lagos, some ultra-luxury apartments in Ikoyi reportedly command up to $130,000 per year, highlighting the widening gap between high-income earners and the average Nigerian.
Structural Challenges and Policy Concerns
The report also points to structural issues across Nigeria’s housing sector, including the widespread practice of demanding one to two years’ rent upfront, which places heavy financial strain on tenants.
Experts say this system persists due to weak credit systems and low trust between landlords and tenants, forcing property owners to seek financial security through advance payments.
The Bureau News understands that without urgent policy reforms to boost housing supply, improve mortgage access, and regulate rental practices, affordability challenges in Abuja and Lagos may worsen significantly in the coming years.