A new Tenancy Bill, currently under consideration by the Lagos State House of Assembly, is poised to bring significant changes to the city's real estate landscape. The proposed legislation, which recently underwent a public hearing, aims to address a long-standing pain point for renters and investors alike: the high cost of real estate agent fees.
The most notable provision of the bill is the proposed reduction of agency fees on annual rents from the traditional 10% to just 5%. This move is designed to provide much-needed relief to tenants, making accommodation more accessible and affordable in a city known for its high cost of living.
For the Lagos real estate market, this is a multi-faceted development. Proponents of the bill believe it will foster a more balanced and transparent relationship between landlords, tenants, and agents. By reducing the financial barrier to entry for renters, it could also stimulate demand and create a healthier, more dynamic rental market. The bill is also expected to restore confidence among real estate investors by standardizing practices and reducing disputes.
"If the bill is passed into law, it will put an end to many of the recurring controversies between landlords and tenants," said Mr. Stephen Ogundipe, Chairman of the House Committee on Information. He added that the bill is not only designed to protect rights but also to "remove barriers to large-scale housing development by private investors."
As a leader in property services, Troloppe Property Services is closely monitoring the progress of this bill. We believe that regulations that enhance market stability and fairness are crucial for sustainable growth. This potential change highlights the evolving nature of the Lagos real estate sector and the importance of staying informed on legislative developments.
For a deeper analysis of this and other key trends impacting property values and investment opportunities in the city, download our latest market report: https://troloppe.com/storage/reports/TPS_Lagos_City_Report_H1_2025.pdf