From Outskirts to Elite: A Look into Magodo Real Estate Progression
Magodo
In this edition of Castles Lifestyle Magazine, we sat with Mr. Femi Adewuyi, CEO of Atlas Properties, who tells us about his first property sales in Magodo in the late 90s. He also opens up about his business ideas during the period and the lessons to be learnt.
Mr. Femi Adewuyi
Mr. Femi Adewuyi, CEO of Atlas Properties, started his journey into the real estate business by working with Continental Properties in 1998 for ten years before starting his real estate firm. He became a junior partner with Continental Properties in 2003. He left the company and later joined as a Senior partner in 2006.
Can you remember your earliest property transaction?
The first property I sold was in Magodo, Isheri. That was in the year 2000, and it was sold for N750k. It was just bare land. Magodo then was a new scheme of the Lagos State Government, and many of the allottees either did not have money to complete the land purchase from the government or did not want to hold on to the land. With my boss Seyi Oyetunde, CEO of Continental Properties, what we did during this period was market speculation. We approached the owners who had Letters of Allocation of specific plots from the Government. Because at this stage, the allottees had to find money to pay; otherwise, they would lose the land. We could offer them fairly low amounts for their rights to the allotment. We used to pay as little as N200,000 – N300,000 for the allotments, depending on the amount paid by the allottee or the stage he had reached in the titling process.
Our firm will then pay the fees, like Capital Development Levy etc., to the Government, get the title – Certificate Of Occupancy and then resell the land. So at N750k, the purchaser is buying land with the necessary documents and ready to pay a premium above the N200,000 that lands without documents are going for.
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How was Magodo, Isheri, when you sold the land, compared to today?
Magodo, Isheri was a neighbourhood people did not want to move to. First, they saw it as an outskirt of Lagos because it is close to Berger, which means that residents would have to commute daily to the commercial parts of Lagos to work. Secondly, it was not developed then, with limited amenities and facilities.
But today, Magodo is considered a high-end area. Development has taken place, the facilities are now there, and the population has grown. The same place people were once running from has become a highly sought-after residential area with modern amenities and a thriving commercial sector. Today plots of land in Magodo are in the tens of millions, often as high as N70m. Imagine the progression. We sold for N750k in 2000 with the letter of allocation and capital development. Today, you will rarely find bare land in Magodo, Isheri.
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What can you say are the changes in Magodo, Isheri today?
Let me put it this way – the changes are out of this world. Magodo is now known to be a place for the rich and affluent in society. It is now exclusive.
Getting plots of land in Magodo today is almost impossible. The whole place has been bought-out. If you get vacant land in Magodo today, it will probably be in the gorge or a swampy area. I would say everywhere in Magodo is built up, and there are no lands.
Looking forward, what are the prospects of real estate in Magodo?
Real estate development has peaked in Magodo Isheri and its environs, mainly because there is no vacancy. If you are buying now, you are likely buying a developed property with the hope of demolishing and rebuilding. On the other hand, the seller will sell at the price of a developed property, so you can imagine the price. That is how far Magodo has gotten in terms of real estate today and, of course, in the future.
Final words?
Real estate is the only sure investment you can have. If you have an opportunity to invest, go into real estate. There are lessons you can pick from Magodo. The value of properties tends to appreciate over time. If you had bought land in Magodo when we sold, you would be smiling to the bank today. We can also see the importance of proper land titles. People were willing to pay more for land that had the proper title and with all the issues on it resolved. Practitioners in the market today can learn from this and look at adding value to low-priced properties and then selling on at a premium.
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