Product Description- Condominiums are multi-story apartments built in large urban centers. Depending on income level of potential tenants, condominiums can be built with low cost building materials with minimum facilities and limited by some what sufficient living spaces. Other condominiums could be fancy and luxurious with all facilities and amenities. The type and standard of condominiums to be built depend on the expected income class of potential tenants. This project idea envisages the construction of low cost condominiums with the basic and essential facilities intended to be rented for employees of the various branches of the regional government and for other people of similar economic background.
Market Potential- the decentralization of government services and the consequent expansion of the state apparatus at regional, zonal and woreda level has dramatically increased the number of employees of the federal and regional governments. This has created a severe shortage of housing at the regional, zonal and woreda capitals. Currently there are thousands of state employees and people of other walks of life who do not have descent housing. Thousands are forced to pay exploitative rents for sub-standard accommodations and many do not have choices but to stay in crammed and dirty so called “hotel-rooms”.
There are some attempts to solve the housing problem on of which is the provision of small plots of land so that people can build their own houses. But due to many constraints, only few have built their own houses. One option for reducing the acute shortage of housing in the zonal and woreda capitals and in Bahir Dar is to encourage investors to build low cost condominiums in these urban centers. The condominiums will have many candidates for renting, and they will be financially attractive to the investors. After all, of all investment ventures, constructing buildings for rent is the most risk free and one of the most rewarding.
Source of Raw Material- Building condominiums requires hollow blocks, nails, corrugated iron sheets, cement, paints, reinforcement bars, wood poles. These building materials have to be secured from different sources within the country.
Process and Technology- The main process includes studying the real estate market, securing the land, building the condominiums and renting them.
Estimated Investment- For building a condominium of about 20 housing units with 35m2 for each unit, total investment will be 20 X 35m2 X Birr 2000/m2=1,400,000. The amount of investment will increase as the number of housing units per condominium building increases.
Benefits- alleviate the housing shortages in the urban areas of the region, provide descent accommodation for many people, and stimulate construction activities in the region.
Location- All zonal capitals, Bahir Dar, Combolcha