Lagosians have indicated a preference for annual rent payments compared to the monthly payment according to data from a survey on the state’s real estate industry.
The report by BuyLetLive titled “Residential Occupier Report” in the first half of 2024 stated that 63% of respondents prefer a yearly rent payment over a monthly payment.
The data from the survey conflicts with popular opinions and plans by the Lagos State government to introduce monthly online rent payments in the state’s real estate sector.
What the data is saying
According to the report, about 62.6% of our Lagos respondents still prefer annual rental payments over other payment methods.
The data from the survey conflicts with popular opinions and plans by the Lagos State government to introduce monthly online rent payments in the state’s real estate sector.
The state government revealed this in a document titled “EKO Revenue Plus Summit,” which was themed “Unlocking New Revenue Streams for Lagos State.” The plan outlines the goal of generating N2.5 billion annually from approximately 100,000 subscriptions each year.
The report indicates that the digital platform will be co-owned by the Lagos State government, with agencies like the Lagos State Ministry of Housing and other MDAs serving as technical partners.
Another 36.4% also indicated interest in moving between the next 6 months to 12 months.
The report noted that the rental preference of Lagosians indicates a strong demand for affordable housing in the state.
Furthermore, the survey reported that most Lagosians prefer to pay between N1 million and N3 million as annual rent payments as noted by 34.5% of respondents.
Also, 11.8% of respondents prefer rent prices between N100k and N500 thousand while 26.4% prefer yearly rent payments between N500k and N1 million.
On the other hand, only 7.3% of respondents could afford rent payments of N5 million to 10 million as 20% would choose a rent payment between N3 million to N5 million.
In terms of apartment size, most Lagosians reported in the survey showed a preference for 2-bed room ad 3-bed room apartments with 38.2% and 35.5% respectively choosing the apartment category.
Also, 16.4% and 9.2% of respondents choose 4 bed room and 1 bedroom apartments respectively as their preferred apartment type.
Outlook for Lagos real estate sector
The report projected the real estate market in Lagos to continue to display residence despite a slew of macroeconomic malaise in the past one year.
It noted that the pace of increase in prices will slow down in the second half of the year compared to the pace of increase in the last one year.
The report also stated that economic instabilities in the country (inflation and exchange rate volatility) were derailing both local and foreign investments in the sector with investors taking a “wait and see” approach. It is projected that such a strategy will result in competition for existing housing units in high-demand areas.
It emphasised that despite the economic problems, the real estate sector is bound to grow in the coming years due to population growth and rapid urbanisation.
What you should know
A recent Nairametrics report highlighted that rents in Lagos State have skyrocketed by over 100% in the past four years, far exceeding the growth of stagnant or modestly increased incomes. This significant gap is putting immense financial pressure on the budgets of ordinary Lagosians.
The Lagos State Government has consistently denounced arbitrary rent hikes and excessive charges by landlords, encouraging residents to speak out against these practices rather than endure them quietly.
To address this issue, the state government has created a new agency to regulate and monitor both tenants and landlords, ensuring fairness in the rental market. They stressed that laws are often neglected if not enforced or contested.
