Escaping Lagos Rent Increases: 5 Signs It’s Time to Purchase Your First Home.
The journey from renting to owning a home in Lagos is often portrayed as a distant dream for many Nigerians. With property prices in prime locations like Ikeja GRA, Surulere, Ogudu GRA, Lekki phase, Ikoyi and Victoria Island averaging ₦150 million for a standard two-bedroom apartment, homeownership seems out of reach. Yet according to the Nigerian Bureau of Statistics, more than 15,000 first-time homebuyers successfully entered the Lagos property market in 2024 alone.
How did they know they were ready? When is the right time to make this life-changing transition? As Lagos continues its rapid expansion—with the city’s population projected to reach 30 million by 2030—understanding when to enter the property market could be one of the most significant financial decisions of your life.
Here are five definitive signs that you’re ready to leap from tenant to homeowner in Africa’s most dynamic city.
1. Your Rent Payments Exceed Potential Mortgage Installments
Adewale, a 34-year-old financial analyst, had been paying ₦5.5 million annually to rent a two-bedroom apartment in Lekki. “I was shocked when I calculated that my monthly rent was 842,000 higher than what my mortgage payments would be for a similar property,” he recalls.
This realization is increasingly common among Lagos professionals. Our analysis of current market conditions shows that with interest rates on mortgage loans now averaging 15-18% (down from 22% in 2023), monthly mortgage payments for properties in areas like Surulere, Gbagada, Lekki phase 1, and parts of Yaba have fallen below equivalent rental costs.
According to the Lagos State Mortgage Board, 68% of new homeowners report spending less on monthly mortgage payments than they previously did on rent.
If your monthly rent exceeds potential mortgage payments by 10% or more, it may be time to consider purchasing. This financial tipping point often occurs when you’ve been renting in the same area for 3-5 years while rental prices have continued to climb at the average Lagos rate of 12% annually.
2. You Have Stable Employment and Income Growth
When Funmi graduated from university in 2019, homeownership wasn’t even on her radar. Six years later, as a senior marketing executive with three years at the same company and a salary that had grown by 40%, she found herself in a different position.
“I realized I had maintained the same job for over three years, with consistent salary increases. The stability gave me confidence to commit to a long-term financial obligation,” she explains.
Financial stability isn’t just about having a high income—it’s about predictability and growth trajectory. The Nigerian Mortgage Refinance Company recommends a minimum of two years’ stable employment history before applying for a home loan.
Our research indicates that successful first-time homebuyers in Lagos typically have experienced annual income growth of 15-20% for at least two consecutive years before purchasing.
This income stability provides the financial foundation and the confidence needed to take on a significant long-term commitment like a mortgage.
3. You’ve Accumulated Sufficient Savings Beyond the Down Payment
The traditional advice about saving 20-25% for a down payment remains valid, but in Lagos’ unique property market, preparedness extends beyond this initial investment.
Hassan, an IT professional who recently purchased an apartment in Maryland, shares: “Beyond my 20% down payment, I had saved an additional six months of living expenses plus about 7% of the property value for unexpected costs. This financial buffer made all the difference.”
Our clients who report the smoothest transition to homeownership typically have:
- 20-25% of the property value for down payment
- 5-8% for closing costs, documentation, and legal fees
- 3-6 months of emergency funds separate from property-related savings
Lagos State Real Estate Transaction Department reports that 39% of failed property purchases in 2024 resulted from buyers unprepared for additional costs beyond the down payment.
The most successful homebuyers set aside funds not just for the purchase but for the ownership journey that follows.
4. You’re Emotionally Ready for the Commitment and Responsibility
The psychological aspect of homeownership is rarely discussed but critically important. For Chinyere, a 36-year-old healthcare administrator, the realization came after a significant water leak in her rented apartment.
“As I waited days for the landlord to fix it, something clicked. I realized I wanted the control and responsibility of homeownership, even with all its challenges. I was tired of being at someone else’s mercy for my living conditions,” she explains.
This emotional readiness often coincides with life stage transitions—marriage, family planning, or career advancement—but can also emerge from a desire for stability and control.
In our survey of 500 recent first-time homebuyers in Lagos, 72% cited “emotional readiness for responsibility” as equally important to financial preparedness in their decision-making process.
Suppose you find yourself researching neighborhoods during lunch breaks, calculating mortgage payments for fun, or feeling frustrated by the limitations of renting. In that case, these are strong indicators that you’re emotionally prepared for homeownership.
5. You Plan to Stay in Lagos for at Least 5-7 Years
The break-even point—when owning becomes financially advantageous compared to renting—varies by location but averages 5-7 years in most Lagos neighborhoods.
Tunde, who purchased a home in Magodo GRA in 2023, carefully considered this timeline. “I evaluated my career path, family plans, and Lagos’s infrastructure development projects before committing. I needed to be certain I’d stay long enough to make the investment worthwhile.”
Lagos continues to develop rapidly, with significant infrastructure projects like the Blue Line Rail expansion, Fourth Mainland Bridge, and Lekki Deep Sea Port reshaping accessibility and property values.
Properties in areas benefiting from these infrastructure improvements have seen an average appreciation of 15-18% annually over the past three years, compared to the city-wide average of 10%.
If your life plans align with remaining in Lagos for the medium to long term, the cumulative benefits of property appreciation, equity building, and stability make homeownership increasingly attractive.
Moving Forward: Your Next Steps
If you recognize these signs, you’re likely ready to begin the homeownership journey. The path forward includes:
- Getting pre-approved for financing to understand your purchasing power
- Conducting neighborhood research based on your lifestyle, commute, and budget
- Working with a reputable real estate professional who understands first-time buyer needs
- Developing a clear understanding of property documentation requirements in Lagos
- Creating a timeline and action plan for your property search
At Brick and Click Realty, we’ve guided over 1,200 first-time buyers through this transformative journey. Our specialized First-Time Homebuyer Program combines educational resources, personalized guidance, and exclusive access to properties suitable for new entrants to the market.
Ready to take the next step?
Click link below to Download our comprehensive “Lagos First-Time Buyer’s Guide” or schedule a no-obligation consultation with one of our dedicated first-time buyer specialists.
Your journey to homeownership may be closer than you think.
