The median rent for a three-bedroom apartment in Nigeria has surged to a record high of N750,000. A comprehensive assessment of the average three-bedroom apartment rents in 15 major cities across the country, using data from propertypro.ng and estate agents, reveals that in cities like Lagos, Abuja, and Port Harcourt, the cost has soared to as much as N1.5 million annually.
In contrast, cities such as Minna, Lokoja, and Ilorin offer the lowest rental rates in this category, with three-bedroom flats available for as little as N300,000 in Lokoja.
This survey also encompassed cities like Jalingo, Asaba, Keffi, Enugu, Makurdi, Uyo, and Gusau. The concept of median market rent represents a balanced rental rate, taking into account various types of flats, in an annual survey that considers rates across different regions to strike a midpoint between the highest and lowest rental prices.
Experts attribute this nationwide increase in rental rates to the rising costs of construction materials and maintenance. Real estate developers, grappling with the aggressive surge in business costs, have been compelled to raise rents to recover expenses and maintain profit margins, according to Michael Ajibola, a Lagos-based realtor. He emphasizes that affordability is becoming a major challenge in the property market.
Moreover, the impact of the fluctuating dollar exchange rate on construction projects has significantly affected the rental market, particularly in Lagos. Ajibola suggests that, nationally, affordability remains a concern in all six geopolitical zones, placing strain on tenants.
In response to these challenges, Ajibola calls for government intervention through housing schemes designed to benefit low-income earners. Additionally, Philemon Nweze, an estate agent in Enugu, highlights that rental rates in the state have surged by over 50 percent in the past three years.
Furthermore, an anonymous source from a company manufacturing aluminum doors and windows attributes the increment in building material prices to a harsh business environment characterized by difficulties in accessing foreign exchange and other industry challenges.
