Lagos residents from neighbourhoods like Gbagada, Surulere, Maryland, Yaba, and Ajah are more and more drawn to the upscale areas of Ikoyi and Victoria Island when contemplating rental choices.
This pattern is fueled by the attract of those prestigious neighbourhoods, regardless of the premium prices related to them.
In line with a latest report by Buyletive, an internet Nigerian actual property platform that promotes properties in Nigeria, the common annual lease for a one-bedroom house in Ikoyi is N6 million.
Though this determine is considerably excessive, it continues to draw residents from different components of Lagos who’re keen to pay a premium for the advantages related to dwelling in such a fascinating location.
The survey highlights that 17.4% of respondents aged between 25 and 45 want to reside in Ikoyi. As compared, 15.7% of respondents expressed a desire for Victoria Island. Different respondents had been extra inclined to had been Lekki Section 1 and Magodo.
This inclination in the direction of these neighbourhoods is essentially pushed by their high-quality facilities and companies. Roughly 10% of these surveyed place a excessive worth on properties that provide complete amenity packages, together with sturdy safety companies, which considerably improve the general dwelling expertise.
What to know
Regardless of Lagos being ranked because the 4th least livable metropolis globally by the Economist Intelligence Unit’s 2023 World Livability Index, native renters are displaying a powerful willingness to put money into properties with higher dwelling circumstances.
This rising demand for improved facilities is predicted to bolster the enchantment of properties in these upscale neighbourhoods, improve tenant satisfaction, and probably result in longer-term tenancies.
Rental prices in Lagos differ considerably relying on the neighbourhood. Ikoyi, being some of the sought-after areas, instructions the very best rents, with one-bedroom flats averaging N6 million per 12 months. As compared, Victoria Island, one other prime location, has a mean lease of N4 million for the same unit.
On the opposite finish of the spectrum, Gbagada gives a extra budget-friendly possibility, with annual rents for a one-bedroom house round N1.3 million.
For these searching for bigger lodging, the price of renting a three-bedroom house in Ikoyi can soar as much as N25 million, whereas in Gbagada, the identical sort of property may cost a little about N3 million yearly.
What we all know
The rising inflation and unstable change charges have considerably impacted property costs in Lagos, resulting in an elevated demand for rental properties. This {economic} setting has made renting extra engaging in comparison with proudly owning property for a lot of residents.
In consequence, roughly 96.5% of Lagosians at present reside in rented flats, with only one.5% proudly owning their houses. This shift is reflective of the broader {economic} challenges confronted by many, together with the rising value of dwelling and fluctuating property values.
Probably the most sought-after residential areas based mostly on affordability and proximity in Lagos are Yaba, Surulere, and Gbagada. Nonetheless, the availability of housing in these areas stays inadequate to satisfy the rising demand.
The housing deficit in Lagos is at present estimated at over 3 million items, underscoring a big hole between the demand for residential properties and the out there provide. This persistent deficit highlights the pressing want for elevated funding in housing growth to deal with the wants of the town’s rising inhabitants.
As Lagos continues to navigate these {economic} and housing challenges, the desire for upscale neighbourhoods like Ikoyi and Victoria Island displays a broader pattern in the direction of valuing high quality dwelling circumstances and facilities, regardless of the related prices.
This pattern is prone to form the rental market dynamics in Lagos within the years to return, with potential implications for each property builders and renters alike.
