Land in Bar, Montenegro, 3 151 sq.m

Investment plot for the construction of an apartment building in Bar.

• Minimum construction area of the facility at its base: 1,260 sq.m.
• The maximum construction area of the facility at the base is 2,363 sq.m.
• Minimum permissible area of the finished facility: 4,725 sq.m. (gross)
• Maximum permissible area of the finished object: 13,234 sq.m. (gross)
• Allowable number of floors: 11 floors

Let's calculate the main indicators of the business plan based on the data provided.

1. Total construction area: Assume that construction will be carried out on the maximum allowable area: 13,234 sq.m.

2. Number of apartments: Let's assume that the average area of one apartment will be 75 sq.m. (this is an approximate value; in reality it may differ depending on the layout and marketing strategy). Then the total number of apartments: 13,234/75 = 176.45. To simplify, we will assume that these are 176 apartments.

3. Construction cost: 13,234 sq.m.*1,000 euros/sq.m. = 13,234,000 euros.

4. Profit from the sale of apartments: 13,234 sq.m. * 2,000 euros/sq.m. = 26,468,000 euros.

5. Cost of the plot: 200,000 euros.

6. Part of the apartments that the seller will take: 176 apartments * 22% = 38.72. Let it be 39 apartments. Area of apartments that the seller will take: 39 apartments* 75 sq.m. = 2.925 sq.m. These apartments will have to be deducted from the total income: 2,925 sq.m.* 2,000 euros/sq.m. = 5,850,000 euros.

7. Net profit: Profit from the sale of apartments minus the cost of construction minus the cost of the plot minus the cost of the apartments for the seller:
26,468,000 euros - 13,234,000 euros - 200,000 euros - 5,850,000 euros = 7,184,000 euros.

Thus, based on the data provided, investing in this project can bring a profit of 7,184,000 euros. However, it should be remembered that this is a rough business plan and in reality there may be additional costs and risks that should be taken into account when drawing up a more detailed business plan.