Authored by the expert who managed and guided the team behind the Nigeria Property Pack
Everything you need to know before buying real estate is included in our Nigeria Property Pack
Kano is northern Nigeria's commercial capital, and understanding rental yields here in 2026 requires looking beyond national averages.
This article breaks down the current rental yields in Kano, covering everything from gross and net returns to neighborhood variations and landlord costs.
We constantly update this blog post to reflect the latest market data and trends.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Kano.
Insights
- Prime districts like Kano Municipal and Sabon Gari deliver 8-12% gross yields in 2026, roughly double what you would find in Lagos premium areas.
- Kano's rental vacancy rate sits under 5% in central districts, which is remarkably tight for a city with property prices 40-60% below Lagos levels.
- The tech hub emergence in Tarauni district has pushed residential property prices up faster than anywhere else in Kano since 2023.
- One-bedroom apartments in Kano rent for ₦400,000-₦700,000 annually (roughly $280-$490 USD), which is about one-third of comparable Lagos rates.
- Sabon Gari's retail vacancy rate of just 4.1% makes it one of the tightest commercial property markets in northern Nigeria.
- The federal Renewed Hope Cities project in Kano is due for commissioning in 2026, adding thousands of new housing units to the market.
- Kano landlords face Local Government Tenancy Fees ranging from ₦15,000 to ₦1,000,000 annually, a cost many first-time investors overlook.
- Property prices in Kano have appreciated 5-7% annually since 2020, with cumulative rent growth of 25-40% over five years in most neighborhoods.
- Short-term rental apartments near Kano's city center achieve 97-100% occupancy rates, outperforming most other Nigerian cities outside Lagos.
What are the rental yields in Kano as of 2026?
What's the average gross rental yield in Kano as of 2026?
As of early 2026, the average gross rental yield in Kano sits between 5% and 7% for typical residential properties, which positions Kano as one of the stronger yield markets among Nigeria's major cities.
The realistic range of gross rental yields in Kano spans from about 4% in premium neighborhoods like Nassarawa GRA up to 12% in prime commercial districts like Kano Municipal and Sabon Gari, depending on property type and location.
Compared to Lagos and Abuja where prime properties typically deliver 6-8% gross yields, Kano offers slightly better returns for investors willing to look beyond Nigeria's two biggest cities, with the added advantage of significantly lower entry costs.
The single most important factor currently influencing gross rental yields in Kano is the combination of strong tenant demand from the city's 4.6 million population and relatively affordable property prices that have not yet caught up with the rental market's strength.
What's the average net rental yield in Kano as of 2026?
As of early 2026, the average net rental yield in Kano ranges from 3.5% to 5.5% after accounting for all landlord expenses and taxes.
The typical difference between gross and net rental yields in Kano is about 1.5 to 2.5 percentage points, which is slightly smaller than in Lagos where higher property taxes and management costs eat into returns more aggressively.
The expense category that most significantly reduces gross yield to net yield in Kano is the Local Government Tenancy Fee, which can range from ₦15,000 to over ₦1,000,000 annually (roughly $10-$700 USD or €10-€600 EUR) depending on property value and specific local government area.
The realistic range of net rental yields for standard investment properties in Kano spans from about 2.5% in premium areas with high service charges up to 8-9% in well-managed properties in high-demand commercial zones, with most typical investments landing in the 4-6% net range.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Kano.
We made this infographic to show you how property prices in Nigeria compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Kano in 2026?
A gross rental yield of 7% or higher is generally considered "good" by local investors in Kano, as this level comfortably exceeds what you would achieve in Lagos or Abuja while still offering stable tenant demand.
The gross yield threshold that typically separates average-performing properties from high-performing ones in Kano sits around 8-9%, with anything above 10% considered excellent but usually requiring either prime commercial positioning or short-term rental strategies.
How much do yields vary by neighborhood in Kano as of 2026?
As of early 2026, gross rental yields in Kano vary dramatically from about 4% in premium residential areas up to 12% in prime commercial districts, representing a spread of roughly 8 percentage points across the city.
The highest rental yields in Kano typically come from properties in commercial and mixed-use areas like Kano Municipal, Sabon Gari, and Tarauni, where strong business activity and tenant demand drive rents while property prices remain more accessible than in Lagos.
The lowest rental yields in Kano are found in premium residential neighborhoods like Nassarawa GRA, Hotoro GRA, and Gwale, where luxury property prices push purchase costs high relative to the rents that tenants will pay.
The main reason yields vary so much across neighborhoods in Kano is the significant gap between commercial-grade locations where business demand pushes rents upward and purely residential areas where buyers pay a premium for prestige and security that does not translate into proportionally higher rents.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Kano.
How much do yields vary by property type in Kano as of 2026?
As of early 2026, gross rental yields in Kano range from about 4% for large detached houses up to 10-12% for well-located apartments and commercial units, with mid-size 2-bedroom apartments typically hitting the sweet spot around 7-9%.
The property type currently delivering the highest average gross rental yield in Kano is the 1-2 bedroom apartment in commercial districts like Sabon Gari and Kano Municipal, where strong demand from young professionals and business travelers supports premium rents relative to purchase prices.
The property type delivering the lowest average gross rental yield in Kano is the large detached house in premium residential areas like Nassarawa GRA and Gwale, where high purchase prices of ₦75-125 million ($52,000-$87,000 USD or €45,000-€76,000 EUR) do not generate proportionally higher rental income.
The key reason yields differ between property types in Kano is that smaller units attract a much larger pool of tenants, including single professionals, students, and business travelers, while large family homes appeal to a narrower market that often prefers ownership over renting.
By the way, you might want to read the following:
What's the typical vacancy rate in Kano as of 2026?
As of early 2026, the typical residential vacancy rate in Kano sits at approximately 3-5% in central districts and 8-15% in peripheral areas, making it one of the tighter rental markets in northern Nigeria.
The realistic range of vacancy rates across different neighborhoods in Kano spans from under 3% in high-demand areas like Kano Municipal and Sabon Gari up to 15-20% in newer developments on the city outskirts where infrastructure has not yet caught up with construction.
The main factor currently driving vacancy rates in Kano is the pace of new construction relative to population growth, with areas like Bompai seeing higher vacancy due to rapid building that has outpaced local demand, while established commercial districts maintain near-full occupancy.
Kano's vacancy rate compares favorably to Nigeria's national average of 6-15% for mainstream neighborhoods, positioning the city as a relatively safe market for landlords who prioritize consistent occupancy over maximum rental rates.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Kano.
What's the rent-to-price ratio in Kano as of 2026?
As of early 2026, the average rent-to-price ratio in Kano is approximately 0.5-0.7% monthly (annual rent divided by purchase price then divided by 12), which translates to roughly 6-8% annualized and represents solid returns by Nigerian standards.
A rent-to-price ratio above 0.6% monthly is generally considered favorable for buy-to-let investors in Kano, as this level indicates that rental income will cover operating costs while still delivering meaningful cash flow, and it directly corresponds to a gross rental yield of about 7% or higher.
Kano's rent-to-price ratio compares favorably to Lagos where the ratio typically sits at 0.4-0.6% monthly in prime areas, and is roughly on par with other second-tier Nigerian cities like Port Harcourt and Ibadan that offer similar yield potential with lower entry costs.
We have made this infographic to give you a quick and clear snapshot of the property market in Nigeria. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Kano give the best yields as of 2026?
Where are the highest-yield areas in Kano as of 2026?
As of early 2026, the three highest-yield neighborhoods in Kano are Kano Municipal (the administrative and commercial center), Sabon Gari (the expatriate and trading hub), and Tarauni (the emerging tech district), all delivering gross yields in the 8-12% range.
The estimated average gross rental yield range in these top-performing areas of Kano Municipal, Sabon Gari, and Tarauni sits between 8% and 12%, with short-term rentals and commercial-residential mixed properties reaching the upper end of this range.
The main characteristic these high-yield areas in Kano share is strong commercial activity that generates consistent tenant demand from business travelers, young professionals, and traders, combined with property prices that have not yet inflated to Lagos or Abuja levels.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Kano.
Where are the lowest-yield areas in Kano as of 2026?
As of early 2026, the three lowest-yield neighborhoods in Kano are Nassarawa GRA (a premium residential enclave), Hotoro GRA (near the university with luxury housing), and Gwale (featuring upscale residential developments), where gross yields typically range from 3.5% to 5%.
The estimated average gross rental yield range in these low-yield areas of Nassarawa GRA, Hotoro GRA, and Gwale sits between 3.5% and 5%, as high property prices in the ₦100 million+ range ($70,000+ USD or €60,000+ EUR) do not generate proportionally higher rents.
The main reason yields are compressed in these premium areas of Kano is that buyers pay significant premiums for security, infrastructure, and prestige, but the tenant pool for high-end rentals remains limited, keeping rental income growth slower than property price appreciation.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Kano.
Which areas have the lowest vacancy in Kano as of 2026?
As of early 2026, the three neighborhoods with the lowest residential vacancy rates in Kano are Sabon Gari (with vacancy under 3%), Kano Municipal (around 3-4%), and Tarauni (approximately 4-5%), all benefiting from strong and diverse tenant demand.
The estimated vacancy rate range in these low-vacancy areas of Sabon Gari, Kano Municipal, and Tarauni sits between 2% and 5%, which means properties typically find new tenants within 2-4 weeks of becoming available.
The main demand driver that keeps vacancy low in these areas of Kano is the concentration of commercial activity, government offices, and emerging tech businesses that continuously attract professionals who need housing close to their workplaces.
The trade-off investors typically face when targeting these low-vacancy areas in Kano is higher competition for available properties and somewhat elevated purchase prices compared to peripheral neighborhoods, though the stability and consistent cash flow often justify the premium.
Which areas have the most renter demand in Kano right now?
The three neighborhoods currently experiencing the strongest renter demand in Kano are Sabon Gari (driven by traders and expatriates), Kano Municipal (attracting government workers and business professionals), and Tarauni (popular with tech workers and startups).
The type of renter profile driving most of the demand in these areas includes young professionals aged 25-40 working in banking, telecommunications, government, and the growing tech sector, along with business travelers and traders who need flexible accommodation near commercial centers.
Rental listings in these high-demand neighborhoods of Sabon Gari, Kano Municipal, and Tarauni typically get filled within 2-4 weeks for well-priced properties, compared to 2-3 months in less desirable locations on the city's outskirts.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Kano.
Which upcoming projects could boost rents and rental yields in Kano as of 2026?
As of early 2026, the three major projects expected to boost rents in Kano are the federal Renewed Hope Cities housing development (adding thousands of units in Sharada), the Kano State infrastructure program (with ₦6.9 billion recently approved for roads and drainage), and the ongoing commercial expansion in Tarauni's tech hub district.
The neighborhoods most likely to benefit from these projects include Sharada Industrial area (near the federal housing project), Tudun Wada and Nassarawa (along new road corridors), and Tarauni (as the tech hub attracts more businesses and workers).
Investors might realistically expect rent increases of 10-15% over 2-3 years in areas directly impacted by these projects, though the new housing supply from Renewed Hope Cities could moderate price growth in some segments by increasing competition for tenants.
You'll find our latest property market analysis about Kano here.
Get fresh and reliable information about the market in Kano
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What property type should I buy for renting in Kano as of 2026?
Between studios and larger units in Kano, which performs best in 2026?
As of early 2026, mid-size 2-bedroom apartments perform best in Kano in terms of combined rental yield and occupancy, offering the optimal balance between broad tenant appeal and manageable purchase prices.
The typical gross rental yield for studios and 1-bedroom units in Kano ranges from 7-10% (with annual rents of ₦400,000-₦700,000, roughly $280-$490 USD or €240-€420 EUR), while larger 3-bedroom units typically deliver 5-7% yields due to higher purchase prices and a narrower tenant pool.
The main factor explaining why mid-size units outperform in Kano is the demographic profile of renters, with young professionals, small families, and business travelers representing the largest demand segment, and these groups consistently prefer 2-bedroom layouts over studios or large family homes.
One scenario where larger units might be the better investment choice in Kano is targeting the expatriate and corporate housing market in areas like Sabon Gari, where companies seek 3-4 bedroom furnished homes for senior staff and are willing to pay premium rents for quality accommodation.
What property types are in most demand in Kano as of 2026?
As of early 2026, the most in-demand property type in Kano is the modern 2-bedroom apartment with reliable power backup and security features, located within 15 minutes of major commercial areas.
The top three property types ranked by current tenant demand in Kano are: first, 2-bedroom apartments in commercial districts; second, 1-bedroom flats near business centers; and third, 3-bedroom houses in established residential areas with good infrastructure.
The primary demographic trend driving this demand pattern in Kano is the city's young and growing population, with over 50% under age 15 and rapid urbanization at 3.9% annually creating sustained demand for affordable, well-located housing from first-time renters entering the workforce.
One property type currently underperforming in demand in Kano is the large luxury villa or mansion in premium GRA areas, as the tenant pool for high-end rentals above ₦4 million ($2,800 USD or €2,400 EUR) annually remains limited and turnover can be lengthy.
What unit size has the best yield per m² in Kano as of 2026?
As of early 2026, the unit size range delivering the best gross rental yield per square meter in Kano is 40-70 square meters, which typically corresponds to 1-2 bedroom apartments in well-connected locations.
The typical gross rental yield per square meter for this optimal unit size in Kano is approximately ₦10,000-₦15,000 per square meter annually (roughly $7-$10 USD or €6-€9 EUR per square meter per year), translating to yields of 8-10% when purchase prices are considered.
The main reason smaller units below 40 square meters have lower yield per square meter in Kano is limited market depth for studios, while larger units above 100 square meters see yield compression because construction and land costs scale faster than achievable rents in a market where most tenants have modest budgets.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Kano.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Nigeria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What costs cut my net yield in Kano as of 2026?
What are typical property taxes and recurring local fees in Kano as of 2026?
As of early 2026, the estimated annual property tax for a typical rental apartment in Kano ranges from ₦50,000 to ₦300,000 (roughly $35-$210 USD or €30-€180 EUR), depending on property value and local government area assessment.
Other recurring local fees landlords must budget for annually in Kano include Local Government Tenancy Fees of ₦15,000 to ₦1,000,000 ($10-$700 USD or €9-€600 EUR), plus state-level withholding tax of 10% on rental income if collected from corporate tenants.
These taxes and fees typically represent 8-15% of gross rental income in Kano, which is somewhat lower than Lagos where the Land Use Charge and higher property values push this percentage toward 15-20%.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Kano.
What insurance, maintenance, and annual repair costs should landlords budget in Kano right now?
The estimated annual landlord insurance cost for a typical rental property in Kano ranges from ₦30,000 to ₦150,000 (roughly $20-$105 USD or €18-€90 EUR), covering building structure and basic liability protection.
The recommended annual maintenance and repair budget in Kano is approximately 1-2% of property value or 10-15% of annual rental income, which translates to roughly ₦200,000-₦500,000 ($140-$350 USD or €120-€300 EUR) for a mid-range rental property.
The type of repair expense that most commonly catches landlords off guard in Kano is generator and inverter maintenance, as unreliable grid power means backup power systems require regular servicing and eventual replacement that can cost ₦200,000-₦500,000 or more.
The total combined annual cost landlords should realistically budget for insurance, maintenance, and repairs in Kano is approximately ₦400,000-₦800,000 ($280-$560 USD or €240-€480 EUR), representing 15-25% of typical rental income.
Which utilities do landlords typically pay, and what do they cost in Kano right now?
In standard Kano rental arrangements, tenants typically pay their own electricity (via prepaid meters), water, and waste disposal, while landlords are responsible for common area maintenance, security levies in gated compounds, and sometimes generator fuel costs in buildings with shared backup power.
The estimated monthly cost for landlord-paid utilities and shared services in a typical Kano rental property ranges from ₦10,000 to ₦50,000 ($7-$35 USD or €6-€30 EUR), with higher costs in compounds offering shared generator access or premium security services.
What does full-service property management cost, including leasing, in Kano as of 2026?
As of early 2026, the estimated monthly property management fee for full-service management in Kano ranges from 8-12% of monthly rent collected, which translates to roughly ₦40,000-₦150,000 ($28-$105 USD or €24-€90 EUR) monthly for typical rental properties.
The typical leasing or tenant-placement fee charged on top of ongoing management in Kano is equivalent to one month's rent or 10% of annual rent, roughly ₦100,000-₦250,000 ($70-$175 USD or €60-€150 EUR) for a standard 2-bedroom apartment.
What's a realistic vacancy buffer in Kano as of 2026?
As of early 2026, landlords in Kano should set aside approximately 5-8% of annual rental income as a vacancy buffer, which accounts for tenant turnover, cleaning, minor repairs between tenancies, and marketing time.
The typical number of vacant weeks per year landlords experience in Kano is 2-4 weeks in high-demand areas like Sabon Gari and Kano Municipal, extending to 4-8 weeks in less central locations or for properties priced above market rates.
Buying real estate in Kano can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Kano, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Nigeria Property Centre | It's Nigeria's leading property listing platform with thousands of active rental and sales listings across all major cities including Kano. | We extracted rental prices and property values by neighborhood and property type to calculate yield ranges. We also analyzed listing turnover as a proxy for vacancy rates and demand patterns. |
| Nigeria Housing Market | It's a specialized research platform providing in-depth analysis of Nigerian real estate trends, forecasts, and regulatory changes. | We referenced their 2025 market report for national yield benchmarks and construction cost trends. We also used their analysis of the 2025 Tax Act implications for landlord cost calculations. |
| Estate Intel | It's Africa's leading real estate data and research firm providing institutional-grade market intelligence across Nigerian cities. | We used their tax analysis for understanding the 2025 Nigerian Tax Act impact on rental income. We also referenced their occupancy and yield studies for northern Nigerian markets. |
| Bamboo Routes | It's a property investment research platform focusing on African real estate markets with detailed city-level analysis. | We referenced their Kano property price analysis and neighborhood yield comparisons. We also used their tenant demographic studies to understand demand patterns. |
| Giddaa | It's a Nigerian proptech platform providing property listings and real estate guides with practical landlord advice. | We used their property tax deductions guide to understand allowable landlord expenses under the 2025 Tax Act. We also referenced their cost breakdown for property ownership in Nigeria. |
| Jiji Nigeria | It's one of Nigeria's largest classified platforms with real-time rental listings reflecting actual market asking prices. | We cross-referenced rental asking prices with Nigeria Property Centre data to validate market rate accuracy. We used listing engagement metrics to gauge demand levels. |
| Central Bank of Nigeria | It's Nigeria's central bank providing official exchange rates and monetary policy data that affect real estate financing. | We used official exchange rate data to convert Naira figures to USD and EUR. We also referenced interest rate policies affecting mortgage costs. |
| The Guardian Nigeria | It's one of Nigeria's leading newspapers providing credible reporting on government policies and infrastructure projects. | We tracked infrastructure project announcements affecting Kano's property market. We also monitored housing policy developments from the Federal Ministry of Housing. |
| Numbeo | It's a global cost of living database with crowdsourced data on utility costs and living expenses by city. | We referenced utility cost data for Kano to estimate landlord operating expenses. We used their housing cost indices for comparative analysis. |
| Federal Ministry of Information Nigeria | It's the official government information ministry providing authoritative updates on federal housing programs. | We tracked announcements about the Renewed Hope Cities program in Kano. We used government statements to verify infrastructure project timelines. |
| Independent Newspaper Nigeria | It's a major Nigerian newspaper providing coverage of state-level government policies and budget allocations. | We referenced their analysis of Kano State's 2026 budget and infrastructure spending priorities. We used their reporting on local development projects. |
| Exchange-Rates.org | It's a reliable currency conversion platform providing real-time and historical exchange rate data. | We used current NGN to USD and EUR exchange rates to provide international context for Naira-denominated prices and yields. |
| Trading Economics | It's a global economic data platform providing macroeconomic indicators and currency data for Nigeria. | We referenced exchange rate trends and economic indicators affecting Nigerian real estate investment decisions. |
Get the full checklist for your due diligence in Kano
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
Related blog posts