Investment plot for the construction of a residential building in Bar.

Investment plot for the construction of a residential building in Bar.

Location: Bar, Šušan district.

Excellent location.

The location is in a flat part of the city within walking distance of all infrastructure.

According to the urban plan, it is possible to build a structure with a total area of 13,000 m2 on the site.

• Minimum building area of the structure at its base: 1,260 m2.
• Maximum building area of the structure at its base is 2,363 m2.
• Minimum allowed area of the finished structure: 4,725 m2. (gross)
• Maximum allowed area of the finished structure: 13,234 m2 (gross)
• Allowed number of floors: 11 floors

Area of the urban plot: 3,151 sq.m.

Distance from the sea: 700 m.

Received technical specifications.

Sales conditions: 22% compensation + 200,000 euros

Business Plan

Let's calculate the main indicators of the business plan based on the given data.

1. Total construction area: Assume that construction will be carried out on the maximum allowed area: 13,234 m2.

2. Number of apartments: Assume that the average area of one apartment will be 75 m2. (this is an approximate value; in reality, it may vary depending on design and marketing strategy). Then the total number of apartments: 13,234/75 = 176.45. To simplify, we will assume there are 176 apartments.

3. Construction cost: 13,234 m2*1,000 euros/m2. = 13,234,000 euros.

4. Revenue from apartment sales: 13,234 m2 * 2,000 euros/m2. = 26,468,000 euros.

5. Plot price: 200,000 euros.

6. Portion of apartments the seller will take: 176 apartments * 22% = 38.72. Let's make it 39 apartments. Area of apartments the seller will take: 39 apartments* 75 m2. = 2,925 sq.m. These apartments will need to be deducted from the total revenue: 2,925 m2* 2,000 euros/m2. = 5,850,000 euros.

7. Net profit: Revenue from apartment sales minus construction costs minus plot price minus price of apartments for the seller:
26,468,000 euros - 13,234,000 euros - 200,000 euros - 5,850,000 euros = 7,184,000 euros.

Thus, based on the provided data, investing in this project can yield a profit of 7,184,000 euros. However, it should be noted that this is a rough business plan and in reality, there may be additional costs and risks that need to be considered when creating a more detailed business plan.