Accounts & Finance

"To prepare a property development appraisal for the specified plot, we need to follow a structured approach to gather data, analyze it, and make informed estimates. Here’s a detailed plan to accomplish the assignment tasks:

1. Collect and Process Data

A. Estimating Gross Development Value (GDV)

Data Collection:

Asking Prices and Transaction Data:

Collect recent sales data of comparable properties in the Ka5 planning zone.

Gather asking prices from real estate listings and transaction data from property registries.

Sources:

Real estate websites.

Property registries.

Real estate agents.

CYSTAT (Cyprus Statistical Service).

Processing Data:

Analyze the data to identify trends in prices per square meter for similar properties.

Adjust for differences in property features, location within the zone, and current market conditions.

B. Construction Cost Estimation

Data Collection:

Gather recent construction cost data from quantity surveyors and industry reports.

Include costs for materials, labor, professional fees, and contingencies.

Sources: CYSTAT, quantity surveyors, construction industry reports.

Processing Data:

Calculate the cost per square meter for the type of development planned (e.g., residential, commercial).

Factor in local construction cost indices and inflation rates.

2. Estimate Other Costs

A. Costs to Consider:

Professional Fees:

Architects, engineers, project managers.

Legal and planning application fees.

Finance Costs:

Interest on loans, arrangement fees.

Marketing and Sales Costs:

Advertising, agent commissions.

Other Costs:

Infrastructure improvements, utility connections, contingency reserves."