The Shifting Values of Lagos’ Commercial Hub, Allen Avenue
Mr. Abidemi Ojo, a seasoned real estate professional, takes us a trip down memory lane as he shares his experience of how Allen Avenue has transformed from a regular street in Lagos to a hub of highbrow properties and a hotspot for real estate investments. Learn how the emergence of highrise buildings impacted the value of other properties, and find out what he has to say about the future of real estate on Allen Avenue.
Abidemi Ojo
Abidemi Ojo (ANIVS, MSc.) is the Managing Partner of Abidemi Ojo Consulting (a firm of Estate Surveyors and Valuers) and the Chief Executive Officer of Squarefeet Concepts (a real estate development company). He is a seasoned real estate professional with over two decades of experience leading high-performing teams in various real estate agencies, property management, facilities management, and valuation engagement.
In July 2014, he became an associate member of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) and subsequently a registered member (RSV) of the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) in July 2015. He is also a member of other professional bodies.
He is widely travelled, a good motivator, has exceptional leadership skills for achieving goals, and loves research and reading. He is happily married with children.
Please give us details of your first property transaction.
Having been in the real estate business for quite a while now, I have sold many properties across Lagos. However, I have been on Allen Avenue for many years, which has made me privy to many property transactions on this side of Lagos. Our company is also based in Allen Avenue, so I would share some of the property transactions I am familiar with.
There is this property in the middle of Allen Avenue. It is now occupied by one of the leading telecommunications companies. Before the telco occupied the building, the property was occupied by a company that sells carpets and rugs. However, someone repurchased the building in 2000 for about N50m and leased it to the telco, which is still there to date.
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How was the location of the property then compared to today?
Allen Avenue in Lagos has undergone many changes over the years. When the area was first developed, it was just a regular street without any fancy road dividers. But as time passed, they added road dividers, which made the street look more sophisticated. Even though the government did little in infrastructure, people started building their properties on Allen Avenue.
One group particularly interested in the area was the Lebanese. They bought properties and built highrise structures. This caused a ripple effect where the value of nearby properties increased. So, even if you had a simple bungalow next to a fancy 7-storey building, the value of your property would go up because of the fancy building next door. This concept is what we call “shifting values.”
Nowadays, there are many high-end properties and showrooms on Allen Avenue. The LG showroom, for instance, used to be a residential property, but now it’s worth a lot more because LG bought the land for six times what it was sold for just a few years earlier.
In a nutshell, Allen Avenue has evolved a lot, and the value of the properties on the street has increased significantly due to the construction of highrise buildings and fancy showrooms.
What is the estimated price or rental value of the building now occupied by the telecommunications company?
The property now occupied by the telecommunication company is now worth at least N350m today. That is a 600% increase! I say this based on evidence of the sale prices of other buildings. For instance, there is a well-positioned building at the beginning of Allen Avenue. The building is currently being used as a showroom for a furniture company. The property was purchased for N40m, but they just resold it sometime in January 2023 for N630m.
What is the future of real estate on Allen Avenue?
Real estate is an excellent investment, and it’s especially true in Nigeria. Properties in Nigeria appreciate rapidly, and Allen Avenue is one of the best places to invest in. If you’re looking for a promising future, investing in property on Allen Avenue is worth considering.
What makes Allen Avenue such a great investment opportunity? Well, for starters, the location is fantastic. It’s in Ikeja, the capital of Lagos, and attracts people from all over. People come from Ogba, Ojodu, Yaba, and many other places to do business on Allen Avenue. With telecommunication companies like MTN and Glo, and the Federal Inland Revenue Services having offices on Allen Avenue, it’s clear that this place has great potential.
In fact, Allen Avenue is even starting to compete with Victoria Island, which is known for its exceptional infrastructure. With the Lagos State Government building a new link bridge, property prices are expected to skyrocket. Investing in Allen Avenue now will yield significant returns in the future. So, if you’re looking for a wise investment opportunity, Allen Avenue is worth considering.