Description

Property price: €4.8 million Investment volume: €15.8 million Location: City center: The plot is adjacent to a pedestrian zone and shopping center. Nearby is the central train station. Description: A 2,300 m² land plot is available for sale. The plot can be sold now or after construction. All necessary permits for development are in place. According to the existing permits, it is possible to build 7,400 m² of residential space and a large underground garage. The concept could be student housing or a retirement home. Both options are promising in the region and are in high demand. Investment Volume: The cost of the undeveloped plot is €4.8 million. Estimated construction costs are €11 million. The total cost of the completed project is approximately €18 million. The price of new housing in this area is €3,500 – €3,800/m². This means that the market value of the constructed housing will be between €25.90 million and €28.12 million. Equity participation with the current property owner and/or construction company along with an architectural firm is possible. There are tenants ready to lease the property for any use long-term, for 15-25 years with the possibility of extension. Estimated Project Timeline: Preparation of the project and working drawings, project approval, and obtaining construction permits: 6-8 months. Completion of all construction works until the project is operational ranges from one to one and a half years, depending on the chosen project and general contractor. Management and oversight of the construction will be carried out by a management company. Municipal Support: The acute shortage of student housing highlights the importance of this project. A new building with student apartments was constructed on the neighboring plot, and the apartments were sold within 2 months. Choosing this direction increases the importance of the project for the city. As the city is interested in the renovation of buildings and modern development of the vacant plot, the owner/developer will receive support from local government authorities at all levels.