Top 10 Cities in Nigeria with the Highest Rental Yields

Investing in Nigerian real estate is a lucrative opportunity, especially with the country’s housing deficit and growing urban population. One of the most critical metrics for evaluating a property’s investment potential is rental yield. This guide explores the top 10 Nigerian cities with the highest rental yields and what makes them stand out for property investors in 2025.

What is Rental Yield?

Rental yield is the annual return on investment (ROI) a property owner earns from renting out a property. It’s typically expressed as a percentage.

For example, if you buy a property in Lagos for ₦50 million and rent it out for ₦3 million annually, the rental yield is 6%. Higher rental yields indicate better returns, making such properties attractive to investors.

Top 10 Cities in Nigeria with the Highest Rental Yields

1. Lagos

Why Lagos?

As Nigeria’s commercial hub, Lagos offers high rental demand from professionals, expatriates, and students. Locations like Lekki, Ikeja, and Surulere are prime hotspots for rental properties.

• Rental Yield: 6–8%
• Average Rent:
  • 1-bedroom: ₦800,000 – ₦1.5M/year
  • 2-bedroom: ₦1.5M – ₦3M/year
  • 3-bedroom: ₦3M – ₦5M/year
• Best Areas: Lekki, Victoria Island, Ikeja, Yaba

2. Abuja

Why Abuja?

Abuja, as the capital city, caters to government officials, diplomats, and expatriates. High-end locations like Maitama and Asokoro yield significant returns.

• Rental Yield: 5–7%
• Average Rent:
  • 1-bedroom: ₦1M – ₦2M/year
  • 2-bedroom: ₦2.5M – ₦4M/year
  • 3-bedroom: ₦4M – ₦6M/year
• Best Areas: Maitama, Wuse, Gwarimpa

3. Port Harcourt

Why Port Harcourt?

The oil and gas industry drives Port Harcourt’s demand for rental properties. Professionals and expatriates prioritize proximity to workplaces in areas like Trans Amadi.

• Rental Yield: 5–6%
• Average Rent:
  • 1-bedroom: ₦600,000 – ₦1M/year
  • 2-bedroom: ₦1.5M – ₦2.5M/year
  • 3-bedroom: ₦3M – ₦4M/year
• Best Areas: Old GRA, Trans Amadi, Woji

4. Kano

Why Kano?

Kano’s bustling trade and industrial activities support strong rental yields. The city is ideal for affordable housing investments catering to traders and middle-income earners.

• Rental Yield: 5–6%
• Average Rent:
  • 1-bedroom: ₦400,000 – ₦700,000/year
  • 2-bedroom: ₦800,000 – ₦1.2M/year
  • 3-bedroom: ₦1.5M – ₦2M/year
• Best Areas: Sabon Gari, Tarauni, Nassarawa

5. Ibadan

Why Ibadan?

With its growing tech hubs and academic institutions, Ibadan attracts students and young professionals. Affordable property prices and a rising middle class make it a strong contender.

• Rental Yield: 4–5%
• Average Rent:
  • 1-bedroom: ₦300,000 – ₦500,000/year
  • 2-bedroom: ₦700,000 – ₦1M/year
  • 3-bedroom: ₦1.5M – ₦2.5M/year
• Best Areas: Bodija, Oluyole, Akobo

6. Enugu

Why Enugu?

Enugu’s peaceful environment and growing infrastructure attract professionals and government workers. The city is also gaining attention for affordable housing.

• Rental Yield: 4–5%
• Average Rent:
  • 1-bedroom: ₦400,000 – ₦600,000/year
  • 2-bedroom: ₦800,000 – ₦1.2M/year
  • 3-bedroom: ₦1.5M – ₦2.5M/year
• Best Areas: Independence Layout, GRA, New Haven

7. Uyo

Why Uyo?

Uyo is a rising star in Nigeria’s real estate market, thanks to its serene environment and infrastructural development. Demand for rental housing is increasing among professionals.

• Rental Yield: 4–5%
• Average Rent:
  • 1-bedroom: ₦350,000 – ₦500,000/year
  • 2-bedroom: ₦700,000 – ₦1M/year
  • 3-bedroom: ₦1.2M – ₦2M/year
• Best Areas: Shelter Afrique, Ewet Housing Estate

8. Benin City

Why Benin City?

Benin’s cultural and commercial activities attract students, civil servants, and traders. The city offers affordable housing options with steady rental demand.

• Rental Yield: 3–4%
• Average Rent:
  • 1-bedroom: ₦300,000 – ₦500,000/year
  • 2-bedroom: ₦600,000 – ₦800,000/year
  • 3-bedroom: ₦1M – ₦1.5M/year
• Best Areas: GRA, Ugbowo, Sapele Road

9. Abeokuta

Why Abeokuta?

Abeokuta benefits from its proximity to Lagos and offers affordable investment opportunities. It’s popular with students and young families.

• Rental Yield: 3–4%
• Average Rent:
  • 1-bedroom: ₦250,000 – ₦400,000/year
  • 2-bedroom: ₦500,000 – ₦700,000/year
  • 3-bedroom: ₦800,000 – ₦1.2M/year
• Best Areas: Oke-Ilewo, Idi-Aba, Laderin

10. Calabar

Why Calabar?

Calabar’s tourism industry and peaceful lifestyle draw renters, including government workers and expatriates.

• Rental Yield: 3–4%
• Average Rent:
  • 1-bedroom: ₦300,000 – ₦500,000/year
  • 2-bedroom: ₦600,000 – ₦900,000/year
  • 3-bedroom: ₦1M – ₦1.5M/year
• Best Areas: State Housing Estate, Satellite Town

Best Practices for Investors

1. Focus on High-Demand Areas: Choose neighborhoods with strong infrastructure and employment hubs.
2. Understand Local Market Trends: Study rental trends and property appreciation rates.
3. Partner with Reliable Agents: Work with trusted real estate professionals to streamline the process.
4. Consider Property Management Services: Ensure your property is well-maintained to attract quality tenants.

Final Thoughts

By targeting cities with high rental yields, investors can maximize their ROI while contributing to Nigeria’s growing housing market. Whether you’re buying a luxury apartment in Abuja or a family home in Ibadan, understanding rental trends is essential for success.

What’s your experience with property investments in Nigeria? Let us know in the comments!