PROFILE ON REAL ESTATE / HOUSING DEVELOPMENT
I. SUMMARY
This profile envisages the establishment of a real estate development company with a capacity of 10 type 1 units, 6 type 2 unites and 4 type 3 units per annum.
The present demand for housing is estimated at 25,175 units per annum. The demand is expected to reach 38,932 unites by the year 2012.
The plant will create employment opportunities for 12 persons.
The total investment requirement is estimated at about Birr 2.52 million.
The project is financially viable with an internal rate of return (IRR) of 23 % and a net present value (NPV) of Birr 3.46 million discounted at 8.5%.
II. SERVICE DESCRIPTION AND APPLICATION
The real state / housing development in this profile mainly involve provision of construction service on residential houses. Three types of house are constructed under this service, namely:
1. Type-1, villa type A: This type of house has a plot and built-up area of 140 m2 and 85 m2, respectively. The house includes one living and dinning room, these bed rooms, one bath room, one kitchen and service quarter having maid room, traditional kitchen and WC.
2. Type - 2, G+1: This type of house has a plot and built-up area of 225 m2 and 90 m2, respectively. This type of house has one living and dinning room, three bed rooms, one bath room one half bath room (shower), one kitchen and service quarter having maid room, traditional kitchen and WC.
3. Type 3, G+2: this type of house has a plot and bu