Lagos Apartment Hunting: Hidden Costs That Add 30% to 80% to Your Rent [2025 Data]

That ₦1.2 million apartment you found online? You might actually pay ₦1.8 million or more just to get the keys.

Lagos apartment hunting comes with hidden costs most first-time renters never see coming. You budget for the rent, but then the Lagos rent total package hits you. Suddenly, you are facing agency fees, legal charges, caution deposits, and service charges that add 30% to 80% on top of the advertised price.

If you are moving to Lagos or just changing apartments within the state, you need to know exactly where your money is going. Understanding the full cost of living in Lagos starts with knowing what rent actually costs. This guide breaks down every Naira, compares the real costs across 20 suburbs, and helps you avoid the “agent” stories that end in tears.

What Is the Lagos “Total Package”? (And Why It Matters)

In Lagos real estate, the “Total Package” is the only number that matters. The advertised rent is just the base price—like the price of a flight ticket before taxes and baggage fees.

The Total Package breaks down like this—it’s not complicated, but knowing each part helps you negotiate:

1. Base Rent goes straight to the landlord.
2. Agency Fee pays whoever showed you the house.
3. Legal/Agreement Fee covers the paperwork (even if it’s just a template).
4. Caution Deposit is held “in case you break something”—good luck getting it back.

If you only have the exact rent amount in your bank account, you are not ready to move. You will likely be turned away at the negotiation table.

The Real Cost Breakdown

Here is what the math looks like for a standard apartment in 2025. In some budget areas, these percentages are even higher because agents charge fixed fees rather than percentages.

Fee Component	Standard Rate	What It Covers
Base Rent	100%	Annual cost to occupy the property.
Agency Fee	10% (New Bill proposes 5%)	The agent’s commission. Note: Often higher in budget areas.
Legal/Agreement Fee	10%	Drafting the tenancy agreement (lawyer’s fee).
Caution Deposit	5% – 10%	Refundable damage deposit (broken tiles, handles).
TOTAL PACKAGE	130% – 180%	The actual amount you must transfer.

Note: While the Lagos State Government has said caution fees and inspection charges can be unlawful, enforcement is weak. In reality, total packages often jump to 180% when landlords demand upfront service charges or “diesel deposits” along with the first rent.

Real Listing Examples (December 2025):

1. Mini Flat (Oral Estate, Ikota Lekki)

• Rent: ₦4.2m
• Agency: ₦420k (10%)
• Legal: ₦420k (10%)
• Caution: ₦420k (10%)
• Service Charge: ₦400k
• Total Package: ₦5,860,000 (40% markup)

2. 2-Bedroom Apartment (Orchid Road, Lekki)

• Rent: ₦5,000,000
• Agency: ₦500,000 (10%)
• Legal: ₦500,000 (10%)
• Caution: ₦500,000 (10%)
• Service Charge: ₦300,000
• Total Package: ₦6,800,000 (36% markup)

3. 3-Bedroom Serviced (Lekki Phase 1)

• Rent: ₦20,000,000
• Service Charge Deposit: ₦3,500,000
• Diesel Deposit: ₦2,500,000
• Caution: ₦1,000,000 (5%)
• Total Package: ₦27,000,000+ (35% markup before agency/legal fees are even added)

4. Budget Shared Room (Sangotedo)

• Rent: ₦70,000/month (₦840,000/year)
• Agency: ₦75,000 (one-time)
• Caution: ₦10,000
• Gate Key: ₦4,000
• Total First Payment: ₦159,000 (Move-in cost is 2.2x the monthly rent)

Cost of Renting in Lagos 2025: 20 Suburbs Compared

We conducted a detailed Lagos rental market analysis of current listings to give you the real picture. Prices vary wildly depending on whether you are on the Mainland or the Island.

This table compares the Base Rent against the Total Package you will actually pay.

Suburb	1-Bed Rent (Annual)	Estimated Total Package	Service Charge (Est.)	YoY Rent Change	Verdict
Ikoyi	₦8m – ₦15m	₦10.4m – ₦19.5m	₦1.5m – ₦4.5m	+25%	Premium
Victoria Island	₦5m – ₦12m	₦6.5m – ₦15.6m	₦1.5m – ₦4.5m	+65%	Premium
Banana Island	₦15m – ₦25m	₦19.5m – ₦32.5m	₦3m – ₦6m	+20%	Ultra-Premium
Lekki Phase 1	₦3m – ₦6m	₦3.9m – ₦7.8m	₦800k – ₦2.5m	+67%	Mid-Premium
Ikate	₦2.5m – ₦4.5m	₦3.25m – ₦5.85m	₦600k – ₦1.5m	+45%	Mid-Premium
Ajah	₦400k – ₦1.2m	₦520k – ₦1.56m	₦200k – ₦600k	+30%	Budget-Friendly
Sangotedo	₦350k – ₦900k	₦455k – ₦1.17m	Self-service	+25%	Budget-Friendly
Yaba	₦800k – ₦2m	₦1.04m – ₦2.6m	₦300k – ₦600k	+40%	Mid-Range
Surulere	₦700k – ₦1.8m	₦910k – ₦2.34m	₦300k – ₦500k	+29%	Mid-Range
Gbagada	₦800k – ₦2m	₦1.04m – ₦2.6m	₦300k – ₦1m	+29%	Mid-Range
Ikeja (GRA)	₦2.5m – ₦5m	₦3.25m – ₦6.5m	₦1m – ₦2m	+35%	Premium Mainland
Ikeja (General)	₦600k – ₦1.5m	₦780k – ₦1.95m	₦300k – ₦800k	+25%	Mid-Range
Magodo	₦1.5m – ₦3m	₦1.95m – ₦3.9m	₦400k – ₦800k	+30%	Mid-Premium
Ogba	₦500k – ₦1m	₦650k – ₦1.3m	Self-service	+20%	Budget-Friendly
Maryland	₦1m – ₦2.2m	₦1.3m – ₦2.86m	₦400k – ₦900k	+28%	Mid-Range
Festac	₦600k – ₦1.2m	₦780k – ₦1.56m	Self-service	+15%	Budget-Friendly
Ikorodu	₦250k – ₦600k	₦325k – ₦780k	Self-service	+10%	Budget-Friendly
Egbeda	₦400k – ₦800k	₦520k – ₦1.04m	Self-service	+18%	Budget-Friendly
Agege	₦300k – ₦700k	₦390k – ₦910k	Self-service	+15%	Budget-Friendly
Epe	₦250k – ₦500k	₦325k – ₦650k	Self-service	+40%	Emerging

Price Per Square Meter Analysis

To truly understand value, it helps to look at the cost density. Here is the current average price per square meter for rental properties in key areas.

Area	Price per sqm (₦)	Context
Ikoyi	1,500,000	Highest in Lagos
Victoria Island	1,200,000	Premium business district
Lekki Phase 1	800,000	Mid-premium
Ikeja	700,000	Premium Mainland
Magodo	650,000	Mid-Premium Mainland
Yaba	600,000	Mid-range
Ogudu	550,000	Strategic Mainland
Surulere	500,000	Mid-range
Ajah	450,000	Budget-friendly
Festac Town	400,000	Best Mainland Value
Ikorodu	300,000	Most affordable

Value Note: Festac Town offers some of the best value per square meter on the Mainland at approximately ₦400,000/sqm—lower than Gbagada (which averages similar to Surulere at ~₦500,000) and significantly cheaper than Ikeja (₦700,000).

What this data means for you: If you are looking for a mid-range spot in Yaba or Gbagada, you need at least ₦2 million in cash to cover the total package for a decent 1-bedroom. For the Island, specifically Lekki Phase 1, you are looking at nearly ₦4 million upfront. The further you move from the central business districts (VI/Ikeja), the cheaper the rent, but commute costs will rise.

Once you secure your apartment, check our guide on how to furnish your mini flat for under ₦500,000 or look for one-bedroom apartment design ideas.

For Expats and Diaspora Readers

The total cost of living in Lagos for an expat ranges from ₦15 million to ₦36 million ($9,375–$22,500) per year, depending on lifestyle choices. A single person’s estimated monthly costs (excluding rent) are approximately $559, while a family of four needs around $2,015 monthly for basic expenses. Factor this into your housing budget—your rent is just the beginning.

Investment Context: For readers considering buying rather than renting: “Apartment prices in Lagos have increased 5% to 7% annually over the past five years, driven by demand exceeding supply. Rental yields typically range from 4% to 6%, with higher returns in high-demand areas like Lekki and Ikeja.”

Lagos Agency Fees and Legal Fees: What You Actually Pay

This is where many arguments happen. You might see a house and think, “Why am I paying 10% for legal fees when they just printed a template from a cybercafé?”

Agency Fee Breakdown: 10% vs. The New 5% Bill

The agency fee pays the person who introduced you to the landlord. Historically, this has been standardized at 10%, but legal changes are underway.

• The Law: The Lagos State Real Estate Transaction (LASRERA) Law strictly regulates agents.
• The Update: According to the 2025 Tenancy Bill Analysis by Premium Times, there is a significant push to cap agency fees at 5% of the total rent collected. Agents violating this could face a fine of up to ₦1 million or 2 years imprisonment. As of December 2025, the Lagos State Tenancy and Recovery of Premises Bill 2025 has passed through public hearings at the House of Assembly with input from NIESV, REDAN, and the Nigerian Bar Association. Final passage is expected in early 2026.
• The Reality: Despite regulations, “multiple agents” scenarios persist where agents split fees, pushing costs to 15% or 20%.
• Verified Example: In an investigation by The Guardian Nigeria, a self-contained room listed at ₦750,000 resulted in a total package of ₦1,350,000. The agent charged ₦200,000 for agreement, ₦200,000 for commission, and ₦100,000 for service charge—nearly double the advertised rent.
• Your Move: Quote the new bill and Section 26(11) of the existing law. If they ask for more than 10%, walk away.

⚠️ Legal Note: The Lagos State Government, through the Commissioner for Housing, has warned agents to stop charging illegal fees. During a stakeholders’ meeting in April 2024, officials advised the Nigerian Institution of Estate Surveyors and Valuers (NIESV), REDAN, and AEAN to caution members. You can download the Lagos Tenancy Law 2011 (PDF) to understand your rights regarding advance rent limits (1 year for new tenants).

Update: Under the new 2025 Bill, sitting tenants on monthly agreements cannot be asked for more than 3 months’ advance rent—down from 6 months under the 2011 law.

Coverage Expansion: The 2025 Bill extends tenant protections to areas previously exempted, including Ikoyi, Victoria Island, Apapa, and Ikeja GRA. Under the old law, these premium areas operated under outdated provisions that offered less protection. The new bill ensures uniform application across all of Lagos State.

Landlord Inspections: Under Section 9 of the new bill, landlords have the explicit right to inspect their property during tenancy—but only after giving prior written notice to the tenant. They cannot show up unannounced.

Lagos Tenancy Bill 2025: What Changes

Feature	Current Law	New Bill
Agency Fee	10% cap	5% cap
Sitting Tenant Advance	6 months	3 months
Coverage Area	Premium areas exempt	All Lagos areas covered
Enforcement	Weak enforcement	₦1m fine + 2 years prison
Agent Remittance	Unspecified	7 working days to remit

Legal and Agreement Fees Explained

This fee covers the “Agreement.” This is the document that protects you if the landlord tries to kick you out early.

• The Reality: Often, there is no lawyer involved. The landlord uses a standard template.
• Your Move: Even if you pay the fee, insist on reading the agreement. Check clauses about “rent increment” and “generator hours.”

The Caution Deposit Controversy

This is usually 5% to 10% of the rent. It is supposed to be refundable when you move out, provided you didn’t break anything.

• The Problem: Many Lagos landlords treat this as “free money.”
• Legal Stance: As noted in legal analyses by Tee Legal Nigeria, caution fees and inspection fees have been declared unlawful in various directives, citing court cases like Alfred v. Governor of Lagos State (2019). However, enforcement remains a challenge.
• Your Move: Document everything. Take a video of the apartment before moving your bags in.

Service Charges in Lagos: The Hidden Cost Nobody Mentions

Rent gets you the roof. Service charge gets you the lifestyle. In managed estates, especially on the Island (Ikoyi, Victoria Island, Lekki), the service charge is mandatory and can cost anywhere from ₦1 million to ₦7 million per year.

This fee covers plumbing, on-site electricians, security managing your compound, CCTV, cleaning of common areas, waste disposal (LAWMA), and water treatment. Crucially, some estates include generator diesel, while others charge separately.

Serviced vs. Self-Serviced

• Fully Serviced: The landlord provides a generator, diesel, and security. You pay a high service charge, but you don’t worry about fuel.
• Self-Serviced: You bring your own generator and buy your own fuel. The service charge is lower (mostly for security and cleaning).

Location Type	Annual Service Charge	What’s Included
Lagos Island (Ikoyi/VI)	₦1.5m – ₦4.5m	Power (24/7 or 18hrs), security, CCTV, cleaning, waste disposal.
Lekki (Phase 1/Ikate)	₦800k – ₦2.5m	Security, treated water, partial power, estate dues.
Mainland (Gbagada/Ikeja)	₦300k – ₦1m	Security, water, waste disposal. Rarely covers power.

Pro Tip: Always ask if the service charge is “all-inclusive.” Many Lekki estates charge ₦1 million that covers everything except actual power consumed. Even in “serviced” estates, electricity consumption is often billed separately.

• High Usage: Electricity alone can run ₦150,000 to ₦500,000 per month depending on house size and AC usage.
• Low Usage: Economical tenants paying only ₦20,000–₦30,000 monthly rely on fans, turn off lights constantly, and avoid high-power gadgets.

If you choose a self-serviced apartment, you will need to invest in equipment like a rechargeable fan, organize your own generator room setup, and buy your own fuel.

I Visited 10 “Cheap” Apartments on PropertyPro: Reality vs. Photos

I spent two weeks looking for a “budget” apartment to see if the online deals were real. I used popular platforms like PropertyPro and Jiji. Here is the truth about what listing photos hide.

Apartment 1: The “Newly Built” in Yaba

• Advertised Price: ₦800,000
• The Photo: Shiny tiles, bright lights, clean walls.
• The Reality: The building was still under construction. There were no windows, just holes in the wall. The agent told me, “Pay now, we will finish it next week.”
• Verdict: Scam risk. Never pay for a house that isn’t finished. “Next week” in Lagos construction means six months minimum—ask anyone who has tried.

Apartment 2: Ikeja (Alausa)

• Advertised Price: ₦1,000,000
• The Photo: Modern exterior with a gatehouse.
• The Reality: The room was tiny with almost no ventilation. The “serviced” aspect only meant the generator runs from 7 PM to 10 PM.
• Verdict: Poor Value. You will suffocate in the heat or spend a fortune on your own fuel.

Apartment 3: Ajah (Badore Road)

• Advertised Price: ₦500,000
• The Photo: Spacious compound with interlocked stones.
• The Reality: The road to get there was flooded (and it hadn’t even rained that day). The “kitchen” was a small corridor with no sink.
• Hidden Cost: The agent casually mentioned a ₦180,000 “diesel contribution” and a ₦50,000 “infrastructure levy” only after I had inspected.
• Total Package: Jumped from ₦500,000 to ₦780,000 instantly (a 56% increase). If you are on a tight budget, you might have to look for ways to decorate a one-room apartment to make it feel like home despite the cost.

Apartment 4: Ogba

• Advertised Price: ₦600,000
• The Reality: The apartment interior was decent and livable. However, neighbors whispered that the compound floods waist-deep during heavy rains.
• Verdict: Risky. A dry room is useless if you can’t drive into your house in July.

Apartment 5: Gbagada Phase 2

• Advertised Price: ₦1,200,000
• The Reality: Very clean, secure, and well-maintained. The catch? They hid a mandatory ₦400,000 service charge that wasn’t in the listing.
• Verdict: Budget Buster. Great house, but only if you have ₦2m+ in cash ready.

Apartment 6: Festac Town

• Advertised Price: ₦650,000
• The Reality: Excellent value for space. Old-school sturdy building with big rooms.
• Verdict: Location Dependent. If you work on the Island, the 2-hour commute will destroy you. Only consider if your job is on the Mainland.

Apartment 7: Surulere (Mini Flat)

• Advertised Price: ₦700,000
• The Reality: Actually decent. But the agent demanded a ₦5,000 “inspection fee” before he would take me there.
• The Lesson: I refused. Legitimate agents show you the house first. If you pay an inspection fee, they often take you to a terrible house just to fulfill the obligation, keep your money, and stop picking your calls.

Apartment 8: Agege (Pen Cinema)

• Advertised Price: ₦350,000
• The Reality: Advertised as a “self-contained,” but the kitchen was shared with the landlord’s family.
• Verdict: Privacy Nightmare. Read the description twice, then ask three times.

Apartment 9: Sangotedo ( Monastery Road)

• Advertised Price: ₦450,000
• The Reality: The house was fine, but it was 15 minutes by bike (okada) from the express road.
• Verdict: Hidden Commute Cost. You will spend ₦1,000 daily just getting to the bus stop. That’s ₦300k a year in extra transport fares.

Apartment 10: Ikorodu

• Advertised Price: ₦300,000
• The Reality: Amazing finishing. POP ceilings, spacious, painted perfectly.
• Verdict: Remote Worker’s Dream. This is the only true “deal” on the list, but only if you don’t have to cross the bridge during rush hour.

6 Lagos Rent Scam Red Flags I Missed (So You Don’t)

Lagos has many fake agents. Protect your money by watching out for these signs.

1. The “Inspection Fee” Demand: If an agent asks for ₦3,000 or ₦5,000 just to take you to the location, be careful. Real agents earn their commission (10%) when you pay rent. They shouldn’t charge you to view.
2. The “Form Fee” Trap: As investigated by The Guardian, some agents require you to pay ₦3,000 to ₦10,000 for a “form” before they even take you on inspection. After filling the form, many lead you to “apartments that were far from the ideal they’d advertised—many were rundown and barely suitable for habitation.”
3. Price Too Good to Be True: If the average rent in Lekki Phase 1 is ₦3 million, and you see a listing for ₦800,000, it is a scam. There are no miracles in Lagos real estate.
4. “The Landlord is Abroad”: This is a classic story. The agent says the landlord is in London and can’t meet you, so just pay into this personal account. Never pay unless you have verified ownership or met the facility manager.
5. No Written Agreement: If they say “Don’t worry, we are family here, no need for paper,” run. No paper trail means no legal protection under the Lagos Tenancy Law.
6. Pressure to Pay Immediately: “Someone else is coming with cash in one hour!” This is the oldest trick. The “other person with cash” usually doesn’t exist. Take your time.

How I Negotiated 20% Off My Lagos Rent (The Script I Used)

You can negotiate rent in Lagos. Landlords want cash flow, not empty houses. Here is exactly how I did it.

Step 1: Research Comparable Rents Before negotiating, I checked 5–7 similar apartments in the same area. I knew the market price.

Step 2: Identify Landlord Pain Points A house that sits empty for 3 months costs the landlord money. Use this.

Step 3: The Negotiation Script I didn’t just ask for a discount. I offered value.

Me: “Sir, I really love this flat. I know you are asking for ₦1.5 million. I have seen similar flats in this street going for ₦1.3 million. However, I am ready to pay right now for two years upfront if we can agree on ₦1.3 million per year. You won’t have to worry about rent collection for 24 months.”

Step 4: Negotiate Non-Rent Costs The landlord refused to lower the rent below ₦1.4m. So I pivoted.

Me: “Okay, I accept ₦1.4m. But I can only pay 5% for agency fees, not 10%. And I want the caution fee capped at ₦50,000.”

Result: I saved ₦100,000 on rent and ₦70,000 on fees.

Mainland vs. Island Rent: Which Actually Saves You Money?

Is it cheaper to live on the Mainland and commute, or live on the Island and pay higher rent?

Factor	Lagos Island	Lagos Mainland
Average 1-bed rent	₦5m – ₦15m	₦600k – ₦2.5m
Service charges	₦1.5m – ₦4.5m	₦300k – ₦1m
Commute cost	Lower (if working on Island)	Higher (fuel, car maintenance)
Toll Fees	None (internal)	Lekki-Ikoyi Link Bridge costs
Flood risk	High in VI/Lekki/Ajah	Variable (High in some parts)
Electricity	Better in serviced estates	Depends on the area (NEPA is unreliable)

The Verdict: A “cheaper” apartment on the Island might come with higher flood risk during the rainy season and costlier service charges. However, if you work on the Island, living on the Mainland (like Akute or Ikorodu) means spending 4–5 hours in traffic daily. That time has value too. Some Mainland properties in places like Surulere or Ikeja GRA offer better value when you look at the total quality of life. Beyond rent, consider Lagos food prices and transportation when calculating total monthly expenses.

Why Lagos Rent Keeps Rising (And What Smart Renters Do)

You aren’t imagining it—rent is skyrocketing. Here is why:

• Population Growth: Lagos grows by nearly 3% every year. That is roughly 800,000 new people needing homes, but we aren’t building 800,000 new houses.
• Cost of Materials: The price of cement rose from ₦3,000 in 2020 to over ₦12,000 in 2025. Iron rods jumped from ₦128,000 per ton to over ₦1.2 million. Landlords pass these construction costs to you.
• Inflation: As the Naira loses value, landlords increase rent to maintain their purchasing power.

The gap between earnings and housing costs is severe. Recent data cited by The Guardian puts the average monthly salary for young workers in Lagos at about ₦150,000 to ₦175,000. Meanwhile, a modest two-bedroom apartment costs ₦1.5 million to ₦2 million annually in middle-income areas—nearly an entire year’s salary for some workers.

Real Life Case Study: When Abimbola Florence, a writer, moved to Lagos in 2022, she thought her savings would be enough. Three years later, she has saved up three different times just to afford an apartment. “You need to have the complete money available,” she explained. “It’s one thing to save and another to find somewhere that fits your budget.”

What Smart Renters Are Doing:

1. Look for Emerging Areas: Instead of Lekki Phase 1, look at Ikate or Sangotedo. Instead of Yaba, look at Gbagada or the outskirts of Surulere.
2. Target Owner-Occupied Buildings: If the landlord lives in the building, the service charge is usually lower, and the building is maintained better.
3. Time Your Search: Avoid December and January. Everyone is looking then, so prices go up. Try looking in the middle of the year (May–July) when demand is lower.

Is There a Tech Solution on the Horizon?

Future Hope: Housing advocates suggest Lagos could adopt an “open rent” system similar to the UK, where homeowners post vacancies directly on platforms without agent middlemen. As one youth advocate noted: “Technology startups need to develop solutions where homeowners can post vacant rooms directly. It makes things extremely easy and eliminates hidden charges.”

Planning to move soon? Learn how to declutter quickly before moving to make your transition smoother.

Frequently Asked Questions About Lagos Apartment Costs