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Lagos luxury rentals hit N38m annually as demand soars – Report

Rental prices in Lagos luxury housing have climbed to record levels, with top two-bedroom apartments now renting for as much as N38 million a year, according to Northcourt’s 2025 real estate market report.

The study shows that property values at the high end have been rising steadily for more than a year. A one-bedroom luxury flat now costs around N180 million, while three-bedroom units in Old Ikoyi range from N700 million to N1.2 billion.

At the very top of the market, penthouses fitted with smart-home technology and located in gated communities are listed for as much as N8 billion.

Northcourt noted that the strongest demand is coming from Nigerians in the diaspora, especially from the US and UK, as well as wealthy individuals and expatriates who are searching for homes that combine comfort, security, and modern sustainability systems.

The report explained that both sales and rental prices have gone up in the past 18 months. Two-bedroom apartments are now renting for as high as N36 million annually, while penthouses with extra quarters for staff are attracting record offers.

Aside from diaspora buyers, South African developers are beginning to turn their attention to Nigeria’s luxury real estate. Even so, diaspora investors remain the driving force.

Northcourt also predicted that the global luxury housing market could hit $4.34 trillion by 2029, with Nigeria expected to play a key role.

The surge in demand is also changing how properties are built. Developers are focusing on estates with strong security systems, smart lighting, eco-friendly waste solutions, and spacious designs to meet the needs of professionals and families.

In Victoria Island, major projects are underway. Quantum Properties is developing both the 28-storey Metropolitan Towers and Quantum Luxury Towers on Ozumba Mbadiwe Street.

Metropolitan Towers, designed by XBD Collective and built by El-Alan Construction, covers 34,500 square meters and includes 27 residential floors, two rooftop levels, and a basement.

Quantum Luxury Towers, designed by SVA Architects and CKR Consulting Engineers with Cappa & D’Alberto as contractors, is expected to be completed in December 2027.

However, despite the boom in the luxury market, Nigeria’s wider housing sector continues to face challenges.

Homelessness, weak property rights, and poor access to housing finance remain major barriers to solving the country’s housing deficit and making affordable housing more available.

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