Project Background and Objective

The real estate business deals with the sale and purchase of the land. The focus should be given on the cost of equity and cash reserves for the calculation of the real cost of the property. The development of the feasibility report helps in completing the project within the given time frame.

The given project is about the real estate business which is looking forward to construct a duplex residential building in the regional centre of the state. The size of the land should be allotted according to the land required to construct a duplex residential building. The price of the land should be fixed according to the affordability of the customers.

The aim of this project is to develop a feasibility report for analysing the return on equity by analysing the value of duplex cost with the rent collected from tenants. The purpose of the project is to focus on the project schedule to complete the project within the given timeline.

The objectives of the given project are as follows:

• Development of the cost estimation plan for analysing the return on equity by comparing the value of the duplex with the rent received from tenants
• Development of the feasibility report
• Development of the project schedule and time frame of activities
• Analysis of the Constraints and goals associated with the project
• Analysis of the Macro environment business drivers
• Analysis of the Micro environment business drivers

The economic feasibility helps in analysing the financial stability of the real estate proposed project for building a duplex residential building. The development of the cost estimation plan helps in developing a cost variation report for analysing the difference in the value of the building and the rent received from the tenants. It helps in analysing the long term stability of the proposed project. The decision making skills and expertise of the manager will also get enhanced by providing the accurate report of financial status of the firm. The economic feasibility helps in focusing on the following:

• Increment in the revenue received from tenants
• Decrement in the revenue received from tenants
• Helps in analysing the return on investment (Otieno, 2014)
• Helps in analysing the return on equity
• Helps in analysing the total cost spend on developing the residential duplex building in the regional centre of the state (Merrit, and Ricketts, 2012)
• Helps in analysing the total earning of the project
• Helps in analysing the risks associated with the proposed project
• Helps in analysing the cost benefit ratio

The development of the cost benefit ratio helps in analysing the value of the duplex cost. The analysis of the return on equity helps in increasing the efficiency of optimising the cost of the duplex residential building. The emphasis should be given on increasing the return on equity by increasing the value of the rent received from the tenants. The extra cost paid to the agents and dealers should be minimised for enhancing the value of the property. It helps in increasing the profitability of constructing the sailing the duplex to the tenants. The measurement of return on investment helps in analysing the actual cost of the project. The cost spent on constructing the duplex should be taken into consideration for fixing the value of rent to the tenants (Monappa, 2017). The value of rent should be affordable so that it helps in increasing the sale of the property. The feasibility of the property can be measured by the lowest price paid by the tenants.

Project Feasibility Study and Timeline

The competitive feasibility helps in analysing the global competitors of the real estate project. The new and innovated features should be associated with the proposed project so as to remain ahead of the global competitors which helps in increasing the sale of the property (Kang, 2010). The focus should be given on the following:

• Features and services provided by the competitor
• Market Analysis
• Quality of duplex provided by the competitor
• Cost at which the duplex is available to the tenants
• Distance of the proposed project from the competitors residential buildings

The success of the project depends upon the availability of the resources. The effective and efficient management of the resources at the construction site helps in completing the project within the allocated time and cost (Halil, Nasir, Hassan, Shukur, 2016). The availability of the resources depends upon the following:

• Ability of the contractors to made resources available at the construction site (Hyari and Kandil, 2009)
• Ability of the contractors to made resources available in the emergency situation
• Ability of the contractors to made resources available at lowest price with best quality
• Connectivity and transportation facility between the contractor and the site of location (Raz, Shenhar,  and Dvir, 2011)

The development of the residential duplex building depends upon the demographic factors. The demographic factors can be categorised as

Location of the residential building: The development of the residential building is going to be constructed in the regional areas of the state (Upadhyay, Gupta, and Pandey, 2016). The success of the project depends upon the availability of the market, hospitals, schools, transportation, and others from the site of residential building.

People and the nature of tenants: The behaviour of the people should be analysed and judged to retrieve the information regarding the affordability of the price (Prasad, Reddy, Kumar, Reddy, 2012). It helps in fixing the amount of price which the tenant has to pay.

Language and the cultural difference: The differences in the language and culture helps in predicting the background of the people living in the location near the residential building.

Population: The analysis of the population helps in analysing the probability of the sale of the property because the increase number of population increases the probability of sale of property.

The micro environment factors which are responsible for increasing the sale of the residential duplex building are discussed below:

The effective and efficient design of the duplex building can be constructed on the skills and talents of technical and internal expertise of the working team involved in developing the design. The training and development program should be arranged for the working employees to enhance their capability to develop a well-organized duplex residential building design. The quality of service should be provided to the customers so that the sale of the property can be increased to an high extent (Mansfield community, 2013). The technical feasibility helps in analysing the demand of the current requirement of the residential building design. The drawbacks of the previous building should be summarised to develop an effective design. The manpower should be employed according to the working plan of the construction of residential building (LLveskoski, 2014). The existing problems of the customers should be analysed so that the project can effectively satisfy the demand of the consumers and results in the increase of return on equity.

Sources of Real Statistics and Information

The construction activities of the project should be designed according to the time allocated to every activity. The duration of the activities helps in completing the project within the proposed deadline of project plan (Kharaiweish, 2013). It is the key responsibility of the project manager to allocate sufficient amount of time to complete the given task because the short duration of time to complete the proposed activity can result in the failure of the project.

The major component to analyse the feasibility of the construction project is the voice of customers. The level of satisfaction and the quality of service they are looking forward to be achieved in the dream house (Firmanzyah, Veronika, and Trigunarsyah, 2016). The expectation and the desire of the customers should be judged before designing the construction plan of the project. The matrix should be prepared to analyse the need and requirement of the customers which are required to be implemented in the construction of the duplex house.

Conclusion

It can be concluded that the price of the land should be fixed according to the affordability of the customers and return on equity. The development of the cost estimation plan for analysing the return on equity by comparing the value of the duplex with the rent received from tenants. The effective and efficient management of the resources at the construction site helps in completing the project within the allocated time and cost. The reserve cash flow for the proposed project is around $ 800000. The proposed project of developing a residential duplex is completed within the cost of $ 720000. The quality of service should be provided to the customers so that the sale of the property can be increased to a high extent. The technical feasibility helps in analysing the demand of the current requirement of the residential building design. The new and innovated features should be associated with the proposed project so as to remain ahead of the global competitors which helps in increasing the sale of the property. The effective communication plan should be developed for systematic synchronisation of demand and supply at the construction location to develop the project within the allocated time.

References:

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