About 98.5 per cent of Lagos residents live in rented apartments, according to a new report by BuyLetLive.
The report stated that with the inflation and exchange rates in the country consistently rising, residential occupiers in Lagos were predominantly composed of residents interested in renting apartments rather than owning them.
“Our analysis indicates that 98.5 per cent of respondents in Lagos live in rented apartments,” it noted.
It added that economic pressures, including high inflation and a volatile exchange rate, had led to an upward trend in property prices in Lagos State, resulting in a surge in demand for rental properties.
“This demand is particularly strong in affordable areas that offer amenities and proximity to workplaces. The top three residential areas in high demand in Lagos are Yaba, Surulere, and Gbagada. Despite the increasing demand, the supply of housing in these areas remains insufficient to meet the growing needs.
“The current housing deficit in Lagos State is over three million units. This highlights a significant gap between the demand for and supply of residential properties in the state,” it indicated.
The Technical Secretary of the Nigerian Society of Engineers, Victoria Island Branch, Babatunji Adegoke, said the cost of owning a home exceeded the average worker’s income.
He asserted, “Furthermore, high mortgage interest rates are not appealing to many. Social housing options are rarely available, and when they are, they are unaffordable for the average income earner.
“Additionally, homeownership continues to rise due to ongoing inflation. As a result, many people are more concerned about meeting their basic needs rather than prioritizing homeownership.”
A resident of Yaba, Lagos State, Justice Nwuchegbuo, said the state was the country’s industrial hub that attracts a vast influx of migrants seeking better opportunities.
He remarked, “These migrants contribute significantly to the state’s population growth, such as Migrants are primarily middle- and low-class individuals, who cannot afford the cost of building their own house.
“The high cost of land acquisition and construction in Lagos State, coupled with the rising cost of building materials, makes it challenging for people to transition from tenants to landlords. Despite their desire to construct their own house, the increasing expenses force them to remain tenants.
“As a result, the demand for rental apartments far exceeds the available supply, leading to a significant increase in rental costs. With approximately 98.5 per cent of Lagos State residents being tenants, the shortage of available housing drives up prices. Even small apartments, like self-contained units command high prices, ranging from 500,000 to over a million naira, depending on the location.”
In a similar vein, a resident of Surulere, Oluwatosin Babalola, said the state was a major hub of commerce and finance, offering a plethora of employment opportunities, making it an attractive destination for many.
She commented, “However, the high cost of real estate in the state means that owning a property is a daunting task for most residents. With prices constantly on the rise due to high demand and limited space, affordability becomes a significant concern.
“As a result, 98.5 per cent of Lagos residents opt for rented apartments. Renting is not only more affordable but also frees tenants from additional expenses such as land use charges and other government fees. Furthermore, renting allows residents to choose apartments near their workplaces, ensuring easier mobility and a better work-life balance.
“For those migrating to Lagos, renting is often the preferred option as it provides flexibility and does not require a long-term commitment. Without the burden of permanent residency, renters can easily relocate or adjust their living arrangements as needed. Overall, the rental market in Lagos thrives due to these factors, providing a practical solution for residents seeking affordable and convenient housing options.”
It was reported by The PUNCH that rents in Lagos surged by 91.32 per cent over the past five years, posing a challenge to residents seeking affordable housing. (Punch)
