FEASIBILITY STUDY FOR HIGHRISE HOUSING IN PANGANI, NAIROBI ON A 0.25 ACRE PLOT.

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

Francis Gichuhi (692 Posts)

Architect Francis Gichuhi . B.Arch. University of Nairobi. Registered Architect, Kenya. Member, Architectural Association of Kenya. Contacts. email info@a4architect.com. Telephone +254721410684


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