Rongai apartment feasibility study

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

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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