Lagos is the most active rental market in Nigeria. In the state, over 80% of the residents, estimated at 22 million, live in rented accommodation, spending over 50% of their income on house rent.
This partly explains why it is difficult to find a ‘cheap’ house to either rent or buy in the city. Though this presents a huge opportunity for build-to-let or buy-to-let investors, it also fuels fraudulent activities in the market.
Many renters have had their fingers burnt, resulting in substantial income loss to fraudsters.
According to market analysts, some locations in the city are considered the cheapest relative to what is obtained in other locations. Such areas, they say, are for renters who are low-income and have tight budgets.
A market report by Estate Intel, an online property research startup, lists the six locations as Ojo, Ikorodu, Alagbado, Agege, Ikotun, and Egbeda, where average rents for 1-bedroom apartments range from ₦325,000; ₦220,000; ₦270,000; ₦350,000; ₦350,000; and ₦240,000 per annum, respectively.
“From our analysis, we found that most of the preferred areas of living (due to closeness to office areas and city centres) are unaffordable because of the higher costs of living,” Deborah Jesusegun, a senior researcher at Estate Intel, noted.
Jesusegun pointed out that these ‘cheapest’ areas typically fall towards the outskirts of Lagos, stressing that, when looked at closely, the top six of these areas for both 1-bedroom and 2-bedroom apartments fall towards the border areas of Lagos and Ogun State.
1. Agege
Agege is worth considering for rental accommodation.
It has a growing population and boasts a wide range of residential buildings, from old houses to modern apartments.
What makes Agege a good option for those looking to rent in Lagos is its accessibility to other parts of the city.
The area is known for its efficient transportation system, including its proximity to the Lagos-Abeokuta Expressway which makes it easy for residents to travel to other parts of the city.
Agege presents a haven for people looking for low cost of living just as its affordable housing and cost of basic amenities give residents comfortable lifestyle at an affordable price.
Renting in Agege can be very cost-effective, especially when compared to other areas in Lagos.
Although, worthy of note is the fact that Agege is a haven for some notable touts in Lagos. But in a properly secured apartment, you may have no trouble to contend with.
2. Ikorodu
Though located on the outskirts of Lagos, Ikorodu is a bustling suburb that offers affordable rents It is far from the city center, no doubt, but it is easily accessible by road and water transport.
As one of the largest and fastest growing towns in Nigeria, Ikorodu has a wide range of housing options that are suitable for individuals, families, and businesses.
The cost of living in Ikorodu is lower than in many other areas in Lagos, making it an attractive location for renters who want to save on rent expenses.
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However, living in some area of Ikorodu could expose you to some security issues occasioned by a festival often commemorated in the location. Understanding when this festival holds is extremely important if you live there.
3. Alagbado
Alagbado is another affordable area to consider if you’re looking for a place to rent in Lagos, Nigeria. Located in the Ifako-Ijaiye Local Government Area of Lagos, Alagbado offers relatively cheap housing options that are suitable for individuals or families.
The cost of living in Alagbado is relatively lower than many other areas in Lagos, which makes it an excellent choice for those who are budget-conscious.
It’s also well connected to other parts of the city, with good road networks and public transportation options available.
You can find various house types in Alagbado, including apartments and flats.
The cost of renting a one-bedroom apartment in Alagbado is usually between ₦100,000 to ₦200,000 per year, depending on the location and facilities available.
4. Ikotun/Igando
Another cheap area in Lagos to rent a home is Ikotun/Igando. This area is located in the Alimosho Local Government Area of Lagos State. One of the advantages of living in Ikotun/Igando is its proximity to the Lagos State University (LASU) and the Alimosho General Hospital.
Housing options in Ikotun/Igando range from mini-flats to 2-bedroom apartments, making it ideal for small families or individuals on a tight budget.
The area has several local markets where residents can get groceries and other household items at a cheaper rate.
However, one of the downsides of living in Ikotun/Igando is its location.
The area is quite far from the central part of Lagos and getting to work or school can be tasking, especially during rush hour. Also, some parts of the area have poor road networks and might be inaccessible during the rainy season.
5. Egbeda
Egbeda is another affordable area to rent in Lagos, Nigeria. It is located in the Alimosho local government area of Lagos.
One of the reasons Egbeda is a popular location to rent in Lagos is because it is close to the Ikeja business district and the Lagos State University.
This means that residents have easy access to job opportunities and quality education.
The cost of rent in Egbeda varies depending on the type of accommodation and location.
However, the average price of a two-bedroom apartment in Egbeda is between ₦300,000 and ₦400,000 per annum.
This makes Egbeda a great option for individuals or families on a tight budget.
Egbeda is developing and is fast becoming an urban centre in Lagos.
As such, there are many amenities and facilities in the area, including hospitals, supermarkets, and restaurants.
It is also well connected to other parts of Lagos, with good road networks and transportation systems.
