Average annual rent for a two-bedroom apartment in Lekki Phase 1 has climbed to N10 million, making it the fastest-growing residential rental market among Lagos Island’s prime neighbourhoods over the past five years.
This is according to the Lagos Island Residential Market Report 2026 by Lagos Realty, which tracks residential rental prices, property values, and land prices across Ikoyi, Victoria Island, Lekki Phase 1, and Ikate between 2022 and 2026.
The report shows that while Ikoyi remains Lagos Island’s most expensive residential market in terms of rental, home sale, and land values, Lekki Phase 1 recorded the strongest rental growth during the review period, reflecting sustained demand for residential properties in the area.
According to the report, Lekki Phase 1 posted a five-year compound annual growth rate (CAGR) of 35.9 percent in residential rents, the highest among the four locations surveyed.
Victoria Island ranked second with a rental CAGR of 33.5 percent, followed by Ikate at 29.6 percent, while Ikoyi recorded the slowest growth at 22.6 percent over the same period.
The report suggests that rising demand, expanding infrastructure, and the neighbourhood’s growing appeal to professionals, families, and investors have continued to support rental growth in Lekki Phase 1 despite broader economic challenges.
Although Ikoyi continues to command the highest rental and property values on Lagos Island, the stronger pace of rent appreciation in Lekki Phase 1 indicates that the area has become one of the city’s most sought-after residential locations.
The findings highlight changing dynamics in Lagos’ high-end residential market, where demand is increasingly shifting towards neighbourhoods offering a combination of modern housing, improved infrastructure, and proximity to commercial districts.
The report also underscores the resilience of Lagos Island’s premium property market, with all four submarkets recording positive rental growth over the five years despite inflationary pressures and rising construction costs.
As demand for quality residential accommodation continues to outpace supply in key locations, rental values across Lagos Island’s prime neighbourhoods are expected to remain on an upward trajectory.