The median rent for three-bedroom apartments in Nigeria has reached a new high of N750,000 per year, as reported by The PUNCH in a comprehensive survey. The study covered 15 major cities across the country and revealed that cities like Lagos, Abuja, and Port Harcourt had some of the highest rental rates, reaching up to N1.5 million annually for a three-bedroom flat.
Conversely, cities such as Minna, Lokoja, and Ilorin offer more affordable options, with three-bedroom apartments available for as low as N300,000 in Lokoja. The survey considers the median market rent, which represents the midpoint between the highest and lowest rental rates for a given unit type in a particular geographical area.
Experts attribute the rising rental costs in Nigeria to the increased prices of building materials and maintenance. Real estate developers have faced the challenge of higher business costs, leading them to raise rents to recover expenses and maintain profit margins.
Michael Ajibola, a Lagos-based realtor, emphasized that affordability remains a significant issue in the real estate sector, especially due to the impact of the exchange rate on construction projects. Across the six geopolitical zones of Nigeria, affordable housing options are scarce, causing financial strain on renters.
Ajibola suggested that the government should create more housing schemes targeting low-income earners to address this growing issue. Additionally, he noted that estate developers often prioritize high-income earners over the masses in the current economic climate.
Philemon Nweze, an estate agent in Enugu, highlighted that rental rates in the state have surged by over 50% in the past three years. The rising costs of building materials, coupled with challenges related to accessing foreign exchange, have contributed to this increase.
As rental prices continue to rise, many Nigerians are feeling the strain of housing costs, highlighting the need for government intervention to create more affordable housing options for citizens.