6 Cheaper Neighbourhoods to Consider as Lagos Ranks 4th for Luxury Two-Bedroom Rents
- Lagos ranked 4th among 10 cities for high-end two-bedroom rents in 2026, with an average annual cost of $19,379
- Prime areas like Ikoyi and Victoria Island drive the high figures, with some ultra-luxury apartments reaching $130,000 a year
- A January 2026 ranking identified 6 Lagos neighbourhoods where two-bedroom rents start from as low as N575,000 annually
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Lagos has cemented its position among the world’s most expensive cities for high-end rental housing, but tenants willing to look beyond Ikoyi, Victoria Island and Banana Island can find significantly cheaper options.
The commercial capital ranked fourth among 10 cities for high-end two-bedroom rental costs in 2026, with an average annual rent of $19,379, according to a recent Nairametrics report.
Source: UGC
The report attributed the steep prices to limited land availability, strong demand in prime locations, rising construction costs, speculation and the depreciation of the naira.
For tenants priced out of Lagos’ luxury enclaves, however, several mainland and outer-Lagos neighbourhoods offer a different rental picture.
Why Lagos luxury rents keep climbing
High-end properties in Ikoyi, Victoria Island and Banana Island are frequently priced in dollars, while ultra-luxury developments around Bourdillon, Alexandra and Gerrard roads in Ikoyi can command rents as high as $130,000 a year.
The cost does not end with the advertised rent. Tenants may also have to budget for agency, legal and agreement fees, caution deposits, stamp duty, utility deposits, internet installation and service charges.
Agency charges can range from one or two months’ rent to 10 per cent of the annual rent, while legal and agreement fees can range from five per cent to 10 per cent.
This means the actual amount required to secure a home can be substantially higher than the headline rent.
Rising construction costs are also adding to the pressure. Cement prices have climbed to about N12,500-N15,000 per bag, from roughly N5,000-N6,000 at the end of 2023, while reinforcement steel has risen to between N1 million and N1.5 million per tonne.
Against this backdrop, Lagos’ housing deficit was estimated at 3.4 million units in 2025, increasing pressure on available housing.
Six areas where two-bedroom rents are cheaper
For tenants willing to trade some proximity to Lagos’ prime business districts for affordability, a January 2026 Nairametrics ranking based on the Lagos Residential Market Report 2025 by Edala Development identified several cheaper locations.
1. Badagry: From N575,000
Badagry emerged as the cheapest location on the ranking, with an average annual rent of about N575,000 for a two-bedroom apartment.
The coastal town offers access to the Badagry corridor and has an economy driven largely by fishing, trading and tourism.
Its distance from the central parts of Lagos remains a major consideration for workers who commute daily.
2. Epe: From N605,000
Epe recorded an average annual two-bedroom rent of about N605,000.
Located along the Lekki-Epe corridor, the area has road links to Ijebu-Ode and Ikorodu and benefits from growing residential and commercial activity.
Its expanding infrastructure and proximity to emerging developments could make it attractive to renters prioritising space and lower housing costs.
3. Ikorodu: From N815,000
Ikorodu recorded an average annual rent of N815,000 for a two-bedroom apartment, according to the ranking.
The area has become increasingly attractive to renters seeking cheaper housing while remaining connected to other parts of Lagos through road and water transport.
Current Nigeria Property Centre listings also show a broad range of rental options across neighbourhoods including Igbogbo, Agric, Isawo, Gberigbe and Jumofak. Self-contained apartments currently average around N400,000, while mini-flats average roughly N700,000, although individual properties vary widely.
4. Ojo: From N967,000
Ojo recorded an average annual two-bedroom rent of about N967,000.
The area benefits from its location along the Lagos-Badagry Expressway and proximity to major commercial centres such as Alaba International Market.
It is also home to Lagos State University, making the area a significant residential and commercial hub.
5. Alimosho: About N1 million
Alimosho ranks among the more affordable parts of Lagos, with average two-bedroom rent put at about N1 million annually.
Its large geographical spread includes areas such as Egbeda, Ayobo, Ipaja, Ikotun and Igando, giving renters a wide range of neighbourhoods and housing options.
The area’s large population and growing middle class continue to support demand for residential properties.
6. Mushin: About N1.1 million
Mushin recorded an average annual two-bedroom rent of about N1.1 million.
Its major advantage is location. Unlike some cheaper areas farther from central Lagos, Mushin is relatively close to several major commercial and transport corridors.
The neighbourhood is connected through Agege Motor Road and Ikorodu Road and has access to markets, schools, healthcare facilities and public transport.
However, tenants must weigh affordability against challenges including congestion, overcrowding and infrastructure pressures.
Cheaper rent does not always mean cheaper living
For Lagos renters, the headline annual rent is only one part of the calculation.
A cheaper apartment farther from work could result in significantly higher transport costs and longer commuting times. Tenants should also investigate electricity, water supply, security, road access, service charges and additional fees before signing a tenancy agreement.
Still, with luxury rents continuing to rise, locations such as Badagry, Epe, Ikorodu, Ojo, Alimosho and Mushin demonstrate that Lagos’ rental market has sharply different price points.
Source: Getty Images
For households struggling with the cost of accommodation, moving away from the city’s most expensive neighbourhoods could provide a more manageable path to securing a two-bedroom home.
Lagos is changing the rent law
Legit.ng earlier reported that Lagos is moving to reshape the way millions of residents rent homes, with a proposed tenancy bill seeking to tackle excessive rent increases, questionable agency charges, fraudulent agents and long-standing disputes between landlords and tenants.
The bill, currently before the Lagos State House of Assembly, could significantly change how rental transactions are conducted across the state if it becomes law.
But while tenants may welcome tighter regulation, landlords and estate agents could face a very different reality.
Source: Legit.ng
