The Lagos real estate market has always been somewhat chaotic. For years, tenants and homebuyers have struggled with the rising cost of transactions, particularly agency and legal fees that often push housing further out of reach for the average Lagosian. But now, the Lagos State Government is stepping in with a bold new plan designed to restore order, protect consumers, and make housing more affordable.
Through its regulatory arm, the Lagos State Real Estate Regulatory Authority (LASRERA), the government has announced a groundbreaking collaboration with the Chairmen of all 57 Local Government Areas (LGAs) and Local Council Development Areas (LCDAs). The goal? To regulate and reduce agency and legal fees while tightening oversight of property transactions across the state.
According to the Commissioner for Housing, Hon. Maruf Akinderu Fatai, this move is about cutting costs and restoring sanity to the built environment and ensuring that housing which is a basic human necessity, remains accessible to everyone. “The aim of the collaboration is not only to reduce the exorbitant fees being charged by some property agents, but to bring sanity to the real estate sector and make life easier for the average Lagosian,” he explained.
At the heart of this initiative is a new directive: agency fees must not exceed 10 percent of the total transaction value. Anything beyond that is now considered exploitative and unacceptable. This is a huge shift in a market where residents have often been saddled with double-digit percentages, legal add-ons, and hidden charges.
But the reforms go even further. The government has reiterated its long-term vision to move toward monthly rent payments, a system that would ease the financial burden on tenants who currently face the daunting challenge of paying one or two years’ rent upfront. For many working-class Lagosians, such a shift could be life-changing, freeing up income for other essentials and improving overall financial stability.
The Special Adviser to the Governor on Housing, Hon. Barakat Odunuga-Bakare, emphasized the importance of working only with LASRERA-registered agents and developers. She warned that engaging with unregistered operators exposes both landlords and tenants to unnecessary risks, from fraudulent deals to disputes that could easily have been avoided. “LASRERA exists to protect both tenants and landlords, and we will not relent in our effort to restore sanity to the built sector,” she said.
By involving LGA and LCDA Chairmen, the state is pushing regulation down to the grassroots where the majority of housing transactions actually take place. This localized oversight could help curb exploitation in areas often overlooked by high-level policies, making the impact of regulation more widespread and effective.
For investors, the new reforms bring a fresh layer of security and transparency. Knowing that fees are capped and that only registered agents are allowed to operate adds confidence to the Lagos property market. It also positions Lagos as a model for regulatory innovation in Nigeria’s real estate sector.
At the end of the day, these reforms are about balance and making sure that developers and agents earn fairly for their work while protecting tenants and buyers from excessive charges. It’s a welcome development for anyone who believes that real estate should be a pathway to opportunity, not exploitation.
For us at Geoponts Properties, this move aligns perfectly with what we stand for: transparency, professionalism, and genuine value in every transaction. As a LASRERA-compliant agency, we sell properties with peace of mind. Whether you’re looking to buy, lease, or invest, we’re here to guide you through the process with clarity and confidence.
Because in Lagos real estate, it’s not just about securing a property, it’s about securing your future.
Ready to work with a trusted real estate partner? Contact Geoponts Properties today and let’s help you make the smartest move in the market.
