I have been searching for a rental property for my friend for the past 2 months now (somewhere close to the island), from my search what i have discovered is the ridiculous prices which properties are labelled with.

I would have not been offended if this properties were actually worth it. It looks to me as if people just wake up oneday and decide that the rent for their house should go at a particular rate.

What Basis are they using:
Is it the location,
The value of the land,
the type of property,
the security,
the space,
Availability of water or power,
Accessability of the area?

because if its all these then rental shuld not be as expensive.

The other day i saw a property for rental In Araromi street @ Onike, the property is being renovated (not yet completed), Walked in to check it out and i was told that only the back property (three bedroom flat)was available, the good thing about the property was that it had parking space close to the junction easily accessible, (it had toilet and bathroom in all rooms), other features were that it had an average sized kitchen. buit all rooms including master's bed room were bothering on small, no dining area, the back house had no breathing space (fence blocking the air)it was the smallest apartment in the bulding and guess what? It was going for N850,000 (yes, a small flat in yaba), you have to pay 2years rent in advance a security deposit of N50,000 and legal and Agency fee every thing in total goes to N2.09Million.

Yet an average 3 bedroom flat in that area goes for between 350K to 400K per annum (new or Old), "trust me I asked arround". now someone please explain to me in language that i can understand the reason for more than 100% increment in rent?

I am sorry if it seems as if I am venting off, but the ridiculous prices which are called for rental pricies nowadays call into question the BASIS FOR SUCH ESTIMATES.

MY QUESTION IS HOW DO YOU DERIVE THE COST OF A PROPERTY?

No takers?