FEASIBILITY STUDY FOR HIGHRISE HOUSING IN PANGANI, NAIROBI ON A 0.25 ACRE PLOT.
Land Cost.
A 0.25 acre plot in Pangani costs around KES 50m.
A maximum of 10 floor levels is possible, similar to the Chinese 10 floor building opposite thwe Pangani Mosque.
Car Parking.
This can park 28 cars per underground level. For 2 underground levels, this will park 56 cars.
Assuming a 3 bedroomed unit of 90m2, the building can house 6 units per floor and 60 units for the maximum possible 10 floor levels.
This number of units fits well with 2 underground levels of car parking. The extra cars will park along the street.
Construction cost.
A construction cost per m2 of KES 43,000 is envisioned to cater for the underground plus high rise costly construction costs.
The building construction will cost kes 230m. The total construction cost when you add up the building cost, road works, fence, sewer, professional fees,marketing, land and bank interest will total approximately kes 360m as tabulated below.
Return on Investment.
This gives a 25% Return on Investment if the houses are sold at KES 7,500,000 each, which is within market rate.
Property appreciates over time. The construction period can take a minimum of 1 year of which the property value will have increased at a rate of 20% per annum.
Below are the calculations that support the above .
| Cost Item |
Kshs |
% |
| Land |
50,000,000.00 |
13.82521609 |
| Preliminary |
1,800,000.00 |
0.497707779 |
| Construction |
226,800,000.00 |
62.71118018 |
| External Works |
11,340,000.00 |
3.135559009 |
| Contingency |
4,536,000.00 |
1.254223604 |
| Professional fees |
11,340,000.00 |
3.135559009 |
| Project Management fees |
2,268,000.00 |
0.627111802 |
| Marketing |
12,750,000.00 |
3.525430102 |
| Financial Charges |
40,824,000.00 |
11.28801243 |
| Total |
361,658,000.00 |
100 |
| Financing Plan |
Kshs |
% |
| Developer |
134,858,000.00 |
37.28881982 |
| Debt Finance |
226,800,000.00 |
62.71118018 |
| Presales |
45,000,000.00 |
12.44269448 |
| Total |
361,658,000.00 |
112.4426945 |
| PROFIT | ||
| TOTAL SALES FOR 60 UNITS |
450,000,000.00 |
|
| TOTAL EXPENDITURE |
361,658,000.00 |
|
| NET PROFIT |
88,342,000.00 |
|
| % Profit Margin |
24.42694479 |
|
| Take home ammount. |
138,342,000.00 |
Francis Gichuhi Kamau. Architect.
info@a4architect.com
0721410684
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