Ikate two-bedroom apartment prices hit N205 million as off-plan demand grows

The average selling price of two-bedroom apartments in Ikate rose to N205 million in 2026, more than doubling over five years as strong off-plan demand gathered pace.

The disclosure was contained in the Lagos Island Residential Market Report 2026 by Lagos Realty, which tracked residential rental prices, sales values and land costs across Ikoyi, Victoria Island, Lekki Phase 1 and Ikate between 2022 and 2026.

The report noted that sales activity in Ikate accelerated sharply between 2024 and 2026 as new residential towers approached completion, with two-bedroom apartments recording strong off-plan demand.

What the report is saying

According to the report, the average selling price of a two-bedroom apartment increased from N90 million in 2022 to N205 million in 2026, making it the standout performer in Ikate’s residential sales market during the review period.

It noted that sales activity accelerated sharply between 2024 and 2026 as new residential towers approached completion, with two-bedroom apartments attracting strong off-plan demand from buyers.

The report added that continued developer investment and a robust pipeline of projects could support further price discovery as more developments are completed.

Other apartment categories also recorded notable price appreciation over the five-year period.

• The average selling price of one-bedroom apartments rose from N72 million in 2022 to N120 million in 2026, while three-bedroom apartments increased from N145 million to N255 million.
• Four-bedroom homes appreciated from N180 million to N345 million, while five bedroom properties rose from N245 million to N450 million, reflecting continued growth in the premium residential segment.

More insights

Land values also recorded strong growth in Ikate over the period under review. Average land prices increased from N385,000 per square metre in 2022 to N955,000 per square metre in 2026, representing a 148% cumulative increase over five years.

• According to the report, the rise in land values was driven by increased developer interest and Ikate’s transition from a predominantly low-density neighbourhood into a mixed-use residential district with more apartment developments and gated estates. It added that waterfront and lagoon-facing parcels continued to command a premium over inland plots.

Rental values also increased across all apartment categories during the review period.

• The average annual rent for one-bedroom apartments rose from N2 million to N6 million, while two-bedroom rents increased from N3 million to N8.5 million. Three-bedroom apartments climbed from N5 million to N10.5 million, representing a compound annual growth rate of 20.4%.
• Larger homes recorded even stronger rental growth, with average annual rents for four-bedroom properties rising from N5.25 million to N15 million, while five-bedroom units increased from N6 million to N20 million.

What you should know

The sustained increase in residential property values and rental rates across Ikoyi, Victoria Island, Lekki Phase 1 and Ikate over the past five years aligns with accounts from Lagos residents who say housing costs have risen sharply across the state.

While many tenants have attributed the frequent rent increases to landlord opportunism, previous interviews by Nairametrics with landlords, property managers and estate agents suggest the trend is being driven by inflation, rising construction and maintenance costs, naira depreciation, strong housing demand and limited housing supply.

The supply challenge remains significant. While the Federal Government estimates Nigeria’s housing deficit at more than 15 million units, some private sector estimates put the shortfall as high as 28 million homes. In Lagos alone, the housing deficit is estimated at about 2.3 million housing units, underscoring the supply constraints that continue to support higher property prices and rents across the state’s residential market.