Lagos Has Highest Rent Index Among African Cities
By Adedapo Adesanya
Lagos State has the highest rent index among selected cities in Africa, a new index from Numbeo seen by Business Post shows.
In its Africa: Cost of Living Index by City 2023 rankings, Lagos scored 56.0 points, higher than other advanced cities on the continent like Dakar in Senegal (22.2 points), Abidjan in Cote D’Ivoire (17.0 points), Accra in Ghana (15.7 points), as well as South African cities of Cape Town (20.4 points), Pretoria (12.4), and Johannesburg (13.7) among others.
Rent has been an issue for many Nigerians who pay as low as N300,000 per annum for a self-contained apartment and could reach up to N1.5 – 3 million yearly in some highbrow areas. For some locations in Alimosho Local Government Area, a small-room apartment goes for a minimum rate of N90,000 per annum, while a two-bedroom apartment can cost N650,000 per annum based on negotiation and familiarity.
In the Ifako-Ijaiye area of the state, a self-contained apartment goes for as low as N250,000 – N300,000, a resident shared with Business Post, adding that a two-bedroom apartment can cost N500,000 – N600,000.
In the Ogudu area of the state, a resident, Seyifunmi, whose last name was not given, told our correspondent that rent for a one-bedroom is N800,000 per year in a “fairly good street.”
However, she shared that this comes with some drawbacks. In her words, “Parking is hellish.”
Miss Joe, a resident of Gbagada, corroborates claims about the high rent in the state, noting that a simple, decent one-bedroom apartment range is around N500,000 to N800,000 per annum.
“That’s decent, when you want something really good and fine, maybe in an estate too, this starts from N700,000 [a year].”
Explaining the rationale behind Gbagada, she said, “I think Gbagada is like the new Surulere or Yaba. The fact that Gbagada is a more central location in Lagos than any of the above is my most unique selling point. Also, Gbagada is relatively safe with some good roads.”
She noted that housing in Gbagada and its environs, including Pedro, Oworo/New Garage, and Ladi-lak had increased significantly in the past four years. This, she points out, is because “demand is up much more than availability.”
“It has also attracted real estate developers who build to make quick and high returns, and most of these buildings are substandard,” she added.
The Numbeo index rankings also showed that other parameters, including Cost of Living, have shut up in Nigeria’s most populous city. The Cost of Living Index stands at 38.8 points, while the Cost of Living Plus Rent Index adds up to 47.0 points, also the highest among the benchmarked cities.
Other indicators from Numbeo showed that Lagos has a Groceries Index of 39.5 points, also the highest, while the Restaurant Price Index stands at 33.1 per cent, wit the Local Purchasing Index one of the lowest at 7.6 points.