08/05/2026
PRICE WITHOUT VALUE: The Hidden Crisis Undermining Lagos Rental Stability
By Rotn ESV Modeyin Bayo Kingsley
In Nigeria’s most vibrant real estate market, a silent crisis is unfolding—one that threatens not only tenants and landlords but also the long-term stability of the property sector itself. Across Lagos, rental pricing is increasingly drifting away from professionalism and market reality, giving rise to a troubling practice: arbitrary rent.
At its core, arbitrary rent refers to the fixing of rental values without proper market analysis, professional valuation, or reference to comparable properties. Instead of being guided by data and established standards, rent is often influenced by speculation, emotion, and opportunistic motives. In the race for quick financial gains, some landlords and agents impose inconsistent and unjustifiable rents, disregarding the principles that sustain a healthy property market.
Nowhere is this more evident than in Lagos. From Lekki to Ikeja and other high-demand corridors, tenants are confronted with a confusing and unpredictable rental landscape. It is not uncommon to find identical properties within the same neighbourhood commanding vastly different rents—not because of superior features, but due to arbitrary decisions. With demand for housing continuing to outpace supply, the environment has become fertile ground for unchecked pricing and exploitation.
A recent real-life scenario in Ogudu clearly illustrates this growing concern. In early April, a landlord with two vacant three-bedroom flats initially indicated that an annual rent of ₦3 million was acceptable for either residential or commercial use. However, when the first prospective tenant agreed to pay ₦3 million for residential purposes, the offer was declined. Subsequently, another prospect expressed interest in using the property for commercial purposes, prompting the landlord to increase the rent to ₦3.5 million before considering acceptance.
In a further twist, when the second vacant unit was marketed at ₦3.5 million and a new prospect showed willingness to proceed, the landlord again rejected the offer, insisting instead on ₦4 million as the acceptable rent. All of these changes occurred within the span of one month. This pattern reflects a clear case of arbitrary and unjustified rent adjustments—devoid of market consistency, professional guidance, or pricing discipline.
The consequences of this trend are far-reaching. For tenants, it creates uncertainty, financial strain, and frequent displacement. For landlords, it leads to higher vacancy rates, unstable income streams, and diminished long-term returns. For the industry as a whole, it erodes trust and undermines the credibility of estate agency practice, replacing professional valuation with guesswork.
Beyond individual transactions, the broader economic implications are equally concerning. Arbitrary pricing distorts market signals, making it difficult for investors to make informed decisions. It pushes middle-income earners out of prime locations, contributes to urban congestion in peripheral areas, and deepens housing inequality. What emerges is not merely a pricing issue, but a systemic imbalance affecting the social and economic fabric of the city.
Addressing this challenge requires a deliberate and coordinated response. Estate Surveyors and Valuers must reclaim their central role in determining rental values, guided by data, market intelligence, and professional standards. Landlords must adopt a long-term perspective that prioritises stability and sustainability over short-term profit. Regulatory authorities, on their part, must strengthen oversight and enforce compliance within the real estate sector.
Ultimately, the future of property management in Lagos depends on a simple but critical principle: value must drive price. When rent reflects true market value, it promotes fairness, stability, and investor confidence. When it does not, the entire system becomes vulnerable to distortion and decline.
Eliminating arbitrary rent is therefore not just a professional obligation—it is an economic necessity. Restoring discipline to rental pricing will not only protect stakeholders but also lay the foundation for a more transparent, resilient, and investment-friendly property market.
Rotn ESV Modeyin Bayo Kingsley is the Lead Consultant at Bayo Modeyin Consulting, Estate Surveyors and Valuers.
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