Rongai apartment feasibility study

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by

Francis Gichuhi

	Name	Distance from tarmac	Unit type	Rent	area.m2		rent/area	Occupancy rate %	Remarks

1	Greater Nile	120	1 bdm	8000	20		400


2	http://goo.gl/maps/5sUKi	120	2bdm	15000	60		250	80	Design has good lighting, ventilation. Low cost finishes.Parking

3	http://goo.gl/maps/LbUos	300	2bd, 3 bd	17000	60		283.3333	90	Good light, vetnilation, parking, middle cost finishes.

4	http://goo.gl/maps/rNeQm	300	2bd	12000	50		240	80	Good light, ventulation, middle cost finishes, parking

5	http://goo.gl/maps/XlyQU	350	2 bdm	15800	70		225.7143	70	Poor light, ventilation, minimum parking
			1bd	10800	40		270	80
			bedsitter	7000	20		350	100

6	http://goo.gl/maps/9zjtA	450	2 bd	14000	60		233.3333	80	good light, ventilation, parking

7	http://goo.gl/maps/kWo0l	130	2bd	15000	60		250	100	good light, ventilation, parking, high cost finishes.
			1bd	10000	30		333.3333	100
			bedsitter	7000	20		350	100



	Analysis.

	Apartments that have poor light, ventilation and no parking have the lowest occupation rate. In one apartment, we found that a 1 and 2 bdmed unit have been unoccupied for the last 3 years.

	Apartments with good design, good finishes and ample parking had the highest occupancy rates. There were no vacant houses .

	The proposed design has the best cost per rent, at kes 400 per m2, compared to the others.

	The closest to match the proposed profitability are the bedsitters renting at kes 7,000, with kes 350 per m2.

	The proposed design is an improvement of a bedsitter since the bedspace will be private from the living area, hence justifying kes 8000 rent.

	1 bedroomed units also have good returns at kes 333 per m2.

	The 2 dedroomed units have been consructed too many, hence stiff competition, resulting in lower rental prices, hence less profitable.

	Most 2 bedroomed units had an average of 80% occupancy with low rents .

	Most bedsitters had 100% occupancy.

	http://classifieds.capitalfm.co.ke/property/residential-property-to-rent/flats-appartments-to-rent/africa/ke/nairobi/nairobi/bedsitter-to-let-rongai-211721.html

	The above bedsitter is renting for kes 8000 and is 200m form tarmac and has 100% ocupancy rate.

	http://www.buyrentkenya.com/bedsitter-to-let-tumaini-flats-for-rent-in-nairobi-ongata-rongai-8000-kshs-in-kenya-2013~adv3989.htm

	The above link shows bedsitters being rented out for kes 8000. The bedsitters are currently at 100% occupancy and the rate has since been hiked upwards to kes 9,000

	http://www.wanasoko.com/post.php?postid=71474

	The above link shows somenone looking to rent a bedsitter in Rongai, showing the high demand and low supply of the same.


	From the above, we can observe that bedsitter rents are rising while 2 bedroomed rents are going lower. Bedsitter rents give the best return .



											14166.67

Francis Gichuhi Kamau, Architect.
info@a4architect.com

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