Questions and Answers
What is the first step in the outlined process?
Which step involves estimating the present value of gross realization?
What must be prepared to ensure that the maximum built-up area is utilized?
During which step is the cost of common amenities and facilities estimated?
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What does Step 4 involve estimating?
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What is determined by studying the local real estate market?
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What is included in the estimate for construction of the buildings?
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How is the present value of cost related to construction estimated?
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Study Notes
Data Collection and Site Inspection
- Collect information on recent sales of flats and shops, focusing on genuine instances.
- Conduct site inspections to evaluate pros and cons of sold flats and shops.
Building Plans Development
- Create efficient building plans ensuring flats and shops match all aspects of sold properties.
- Maximize the total built-up and carpet area in design.
Market Value Estimation
- Assess market rates for flats and shops based on square meter values.
- Compare hypothetical building plans against sold properties to determine market value for each unit.
Gross Realization Calculation
- Estimate potential total sales revenue from all flats and shops in the hypothetical building.
- Calculate the expected gross realization amount.
Sales Period Estimation
- Determine the estimated duration required for selling all flats and shops.
Present Value Assessment
- Calculate present value of gross realization as of valuation date, using a deferral for half the project period.
- Apply interest rates derived from local real estate market analysis.
Cost of Construction Analysis
- Evaluate construction costs for buildings, incorporating essential utilities (water, sewerage, electricity, safety features).
- Consider development costs for common spaces and amenities akin to those available in sold properties.
Present Value of Costs
- Estimate present values for various costs:
- Construction of buildings
- Development of common open spaces
- Provision of amenities and facilities consistent with sold properties.
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Description
Explore the essential steps involved in real estate development, from data collection on recent sales to site inspection and building plan preparation. This quiz covers the advantages and disadvantages of flats and shops to ensure effective planning and maximum space utilization.
