The cost of renting a two-bedroom apartment in some of Lagos Island’s most sought-after neighbourhoods has risen sharply, with annual rent reaching as high as N17.25 million in Ikoyi.

The figure is contained in the 2026 Lagos Island Residential Market Report by Lagos Realty, which tracks rental prices, property values and land costs across four major residential markets between 2022 and 2026.

The areas covered are Ikoyi, Victoria Island, Lekki Phase 1 and Ikate.

According to the report, Ikoyi recorded the highest average annual rent for a two-bedroom apartment at N17.25 million, followed by Victoria Island at N15 million, Lekki Phase 1 at N10 million and Ikate at N8.5 million.

The report stated that, “Ikoyi has an average annual rent of N17.25 million for a two-bedroom apartment in 2026,” making it the most expensive of the four locations assessed.

In Ikate, the average rent increased from N3 million in 2022 to N8.5 million in 2026, representing a rise of 183.33 per cent.

The report linked the increase to rapid residential development in the area, where low-density housing has increasingly been replaced by apartment buildings and gated estates.

It also noted that Ikate has become attractive to renters seeking relatively cheaper accommodation on the Island, particularly those moving from more expensive parts of Lekki.

In Lekki Phase 1, the average annual rent for a two-bedroom apartment climbed to N10 million from N4 million in 2022, representing a 150 per cent increase.

The report described the area as the most active of the four markets in terms of transactions, with demand coming from young professionals, families and Nigerians returning from the diaspora.

Victoria Island recorded an average annual rent of N15 million, up from N6.57 million four years earlier.

This represents a 128.31 per cent increase.

The report attributed the sustained demand in the area partly to its status as a major commercial centre, with multinational companies, banks, diplomatic missions and Grade A office spaces attracting corporate tenants, expatriates and professionals.

It also pointed to the development of mixed-use residential projects around the Eko Atlantic and Ozumba Mbadiwe corridors as factors influencing the market.

Meanwhile, Ikoyi’s average rent rose from N8 million in 2022 to N17.25 million in 2026, representing a 115.63 per cent increase.

The report said the area’s luxury housing stock, limited availability of land and demand from high-income households, diplomats, expatriates and senior executives had contributed to rising rental costs.

It added that some luxury apartments in Ikoyi are priced in US dollars, particularly newer developments targeted at upper-income residents.

Overall, the report showed that average rents for two-bedroom apartments in the four Lagos Island markets have more than doubled since 2022.

Ikate recorded the steepest percentage increase, while Ikoyi remained the most expensive location.

The figures highlight the growing pressure on renters in Lagos, where increasing demand, limited housing supply and rapid property development continue to push accommodation costs upward.