A 40 x 60 plot translates roughly to 13m by 20m.
This can have a potential of 6 bedsitter units per floor.
Average rent for a bedsitter in Membley area is 5 to 6 000kes per month.
Assuming 3 storeys are constructed, the rent collected will be kes 6000 x 6 units x 3levels=KES 108,000 per month.
Each floor level will have a plinth area of 72m2.
Construction cost per m2, assuming low to middle class finishes, will be kes 25,000 . The construction cost will be kes 25,000 per m2 x 72m2 =kes 1.8m per floor.
For 3 levels, this will be kes 1.8m x 3=5.4m
Number of Years to pay back.
It will take 5.4m/108000=4.17 years to return back the investment. On average, construction projects take between 10 to 15 years to return back their investment.
Therefore, this is a very profitable venture since the return is very quick.
Consultancy fees are as per CAP 525 of the laws of Kenya as described here.
Along Thika road, bedsitters are rented by Kenyatta University and Jomo Kenyatta University JKUKAT students who share the bedsitter two students per room. Also, a large number of single working class young adults working in Nairobi are potential tenants.
Francis Gichuhi Kamau, Architect.