Lekki Phase 1 has emerged as the fastest-growing residential rental market among Lagos Island’s prime property locations, recording a five-year rent compound annual growth rate (CAGR) of 35.9%, the highest among the four major submarkets tracked, with average annual rent for a 2-bedroom flat in the area hitting N10 million.
This is according to the Lagos Island Residential Market Report 2026 by Lagos Realty, which tracks residential rental prices, sales values and land costs across Ikoyi, Victoria Island, Lekki Phase 1 and Ikate between 2022 and 2026.
The report showed that while Ikoyi remained Lagos Island’s premium residential market by rental, home sale and land values, Lekki Phase 1 recorded the strongest rental growth over the five-year period, highlighting sustained demand for residential properties in the neighbourhood.
What the report is saying
The report ranked Lekki Phase 1 as the strongest-performing rental market over the review period, recording a five-year rent CAGR of 35.9%. Victoria Island followed at 33.5%, ahead of Ikate (29.6%) and Ikoyi (22.6%).
• Despite the stronger growth, Ikoyi remained the most expensive rental market, with the average annual rent for a two-bedroom apartment at N17.25 million, followed by Victoria Island (N15 million), Lekki Phase 1 (N10 million) and Ikate (N8.5 million).
• According to the report, Lekki Phase 1 has Lagos Island’s most liquid rental market, supported by the broadest renter base and highest transaction volumes.
• Average annual rents for one-bedroom apartments rose from N2.5 million in 2022 to N7.5 million in 2026. Two-bedroom rents increased from N4 million to N10 million, while three-bedroom apartments climbed from N5 million to N15.5 million, representing a five-year CAGR of 32.7%.
• Four-bedroom apartment rents rose from N5.5 million to N21.5 million, while five-bedroom units increased from N6.5 million to N25.7 million.
The report noted that actual rents vary by project type, unit size, specifications and amenities, with premium gated communities, serviced residences and waterfront developments typically commanding higher prices.
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