We present to you a series of articles where we will share our company's experience. In this article, we will tell you about a successful development project!
If you are also ready to invest in such a project - contact us, we will be happy to cooperate!
Since 2017, we have been working on residential building projects in Marupe. Marupe is a popular district near Riga that is actively developing. Many private houses and townhouses are being built here, there is well-developed infrastructure (walking areas and paths, schools, kindergartens, shops), and this is a place chosen by young successful families.
Our company's partner, who is engaged in construction, developed a project for two townhouses (the area of one half is 170 sq.m., including terraces and canopies, with interior space of 120 sq.m.).
A land plot of 1800-2000 sq.m. is required, on which two sections are erected. The house is built from blocks, with complete interior finishing, with a landscaped territory.
Having been convinced by our partner's example that such townhouses are built quickly, rent well and sell well, we decided to attract an investor and implement a similar project.
At the end of 2018, a land plot of 2500 sq.m. was selected. We made calculations, opened a company, our investor invested money. A project for 4 sections was developed (two large and two small). Construction was completed at the end of 2019.
For further rental and sale, 3 sections were provided. Two sections were rented out. One section was rented out "with the right to buy." This means that after the agreed rental period, the tenant purchased the property at an agreed price.
The rental payment corresponded to our calculations (750 euros and 800 euros for the large sections).
But the moment of sale turned out to be especially successful. We sold one section at the end of 2021. According to calculations, the sale price was 160-165 thousand euros, but we managed to sell it for 180 thousand euros. We found a buyer for the second section in May 2022. We expected to get 155-160 thousand euros, but we were able to sell it for 205 thousand.
In this project, our investor was fortunate that construction was completed before the pandemic (when there was not such a sharp increase in the cost of building materials as there is now), and the sale came at a time of shortage (in Marupe, demand exceeds supply).
Nevertheless, we continue to build slightly more compact projects (for two sections), because we have standard layouts and finishing, and we have established construction contacts. This allows us to maintain reasonable costs, even taking into account all current risk factors.
If you are interested in a similar project - contact us! We will select a land plot, perform calculations, organize a legally correct working model, conclude a construction contract, suggest an accountant, organize project management, and then take on finding tenants and sales.
Have questions? We are waiting for your email or call!
Phone number: +371 29774775 (Viber, WhatsApp)