Prime Lagos rents keep climbing

Knight Frank's report for the first half of 2026 says prime rents in several Lagos locations have more than doubled since 2023. Annual rent for a three-bedroom home ranged from about ₦22 million in Lekki Phase 1 to ₦45 million on Banana Island. The report also put real estate at 13.1% of Nigeria's GDP.

A separate Lagos Island rent report put the average two-bedroom rent in Ikoyi at ₦17.25 million a year, up from ₦8 million in 2022, with Lekki Phase 1 averaging ₦10 million.

Tax changes worth knowing

Under the Nigeria Tax Act 2025, Knight Frank notes, residential sales and leases are exempt from VAT, and withholding tax on rents paid by individuals for residential property has been removed. Check with your tax adviser how this applies to you.

The Peermont view

High annual rents, usually paid a year or more in advance, are pushing more companies towards furnished corporate leases with monthly billing. That is good news for owners of well-located, well-furnished apartments.