Rents, property prices rise faster than workers’ wages in 2025

DESPITE the payment of the approved 70 percent national minimum wages to workers in the government’s employments and some in the private sector, rents and property prices have risen faster than workers’ salaries in some Nigerian cities.

The situation, according to findings by the Nigerian Tribune, is driven by rapid young population growth, shortage or limited housing supply, high building materials and construction costs, and harsh economic situation impacted by exchange rates.

Apart from these, general inflation, high interest rates, and currency volatility, experts said were contributing factors, shaping what tenants pay and what buyers can afford, with the effects most visible in major urban markets.

Former Chairman, Nigerian Institution of Estate Surveyors and Valuers, Lagos Branch, Dotun Bamigbola, said that while the minimum wage remains 70 percent, rents and house prices have risen above 100  percent between May 2025 and now.

Affordable housing advocate, Mr Olufemi Oyedele, pointed out that rents and housing cost are rising rapidly in Nigerian cities as demand outweighs supply.

In cities such as Lagos, Abuja and Port-Harcourt,  Nigerian Tribune gathered that rents and property prices have risen above 100 percent.

Field survey further showed that rents for standard studio apartments in Lekki jumped to an average N2.5 million per annum, depending on the location and finishings, from N1.2 million and N1.5 million in one year.

In Surulere, an average rental value for one-bedroom mini-flat costs between N2.5 million and 3.5 million per annum, from between N1.5 million and N2 million last year.

In such locations as Yaba, Maryland, Ikeja, Ilupeju, Palm Grove in Lagos, average rental prices for the one-bedroom mini-flat range between N1.5 million to N4 million per annum, depending on the location and features.

In the suburbs like  Ogba, Egbeda, Abule Egba, Ipaja and Ojodu-Berger, rental prices for one-bedroom mini-flat costs between N1 million and N1.8 million.

This is further corroborated by  the Lagos Residential Market Report 2025, published by Edala Research, attributing the rising rents to a mix of rapid urbanisation and escalating construction  costs, among others

The report pointed out that Lagos’ rental market is entering 2026 with strong demand but widening lines between affordability and investment-grade housing.

The report pointed out that structural housing shortages and regulatory shifts would continue to define both property values and rental outcomes in the coming year.

“Despite decades of public and private sector interventions, Lagos still faces a housing deficit of about 3.396 million units, the primary engine driving the rent spikes across the city.

The report described the current environment as one where rents have entered a hyper-inflationary regime distinct from the general economy.

The report noted that mid-market areas such as Yaba, Surulere, Ikeja, Lekki Phase I, and Lekki Peninsula II are experiencing the most intense pressure.

“A studio apartment in Yaba, averaging just N300,000 in 2020, has surged by 400 percent to hit N1.5 million in 2025,” the report said, attributing the jump to demand from students and young tech professionals.

In Surulere, the report said that one-bedroom apartments have recorded sharp growth, appreciating by 300 percent, reflecting competition for compact housing close to commercial activity

At the top of the market, it noted that prime districts such as Eko Atlantic City, Banana Island, Ikoyi, and Victoria Island have continued to command some of the highest rents in the country.

“Eko Atlantic continues to command the highest absolute values, with one-bedroom units trading at N400 million and studio apartments at N285 million,” the report read.

It highlighted strong, unwavering demand for luxury living, supported by exclusivity, security, and premium infrastructure in Bananas Island

Lamenting,  Mr Abraham Aina, a tenant, who is considering relocation to the outskirt from Ketu, Lagos due to high rent, said that apart from paying rent, he has other obligations to meet, reeling out children school fee, transportation to work, electricity, water, waste and security bills.

He described rents in Ketu -Ojota as outrageous, alleging that his landlord in Ketu increased his rent to N1.7 million from N800,000, hence his decision to look for accommodation in Ayobo, Lagos.

Mrs Ella Mathew,  a widow, said that rental values in the neighbourhood of  Abule Egba, Ayobo, Agbado, Ikotun, Ikorodu in Lagos State and areas such as Opic, Warewa, Arepo, Magboro and Sango-Ota have also doubled.

She claimed that she paid N1.2 million per annum for a two-bedroom apartment in Arepo, Ogun State.

In Port Harcourt, Mr. Timothy Jack, who spoke on the telephone, said he paid N800,000 for one-bedroom apartment in Okporo area of the city instead of N350,000 in 2024.

Responding, a landlord in Ketu, Lagos, who identified himself as  Saidi Sonaike, said that harsh government policies, rising costs of living and high building materials costs were responsible

According to the World Bank, N59 trillion is needed to fix the  22 million units of housing deficit in Nigeria.

Oyedele said: ”This means that N59 trillion will build 22 million units at N2.7 for three-bedroom apartment. N2.7 million is not adequate to construct a three-bedroom apartment in Nigeria of today.

“We require about N8 million as minimum cost of a modest three-bedroom apartment, excluding cost of land and having in mind modest finishing.”

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