1. Table of Contents 1. Table of Contents. 1 1. Introduction.
2 2. Vision & Mission. 3 3.
Objective. 3 4. Scope of the Project 7 5.
Project Cost and Schedule. 7 6. Risk Identification.
8 7. Key Stake holders. 8 8.
Estimated Timeline (2 units) – 12 months. 9 9. Conclusion.
9 1. IntroductionCalgary is the third largestmunicipality in Canada with a population of 1.2 million according to the latestcensus. About 40,000 new immigrants arrive each year from all over the world.
It is considered to be one of the most livable cities in the world providingexcellent quality of life, safe communities, lower taxes and proximity tonature. In the next five years, Calgary Suburbs will see an higher than normal growth1.The city is therefore increasing the density of inner city developments tolimit outward growth. To better utilize the land availability in establishedinner city communities, developers are maximizing the space by using the lotsefficiently. This helps the builders with construction of more spacious homesand duplexes on smaller lots. The city and the builders are aiming to create moreaffordable inner-city housing in family friendly and desirable communities.The inner-city Calgaryneighbourhoods were established 60 to 100 years ago. Most of the bungalow stylehouses need to be teared down for a re-built due to age, style and change inthe building codes.
Other factors promoting inner-city development is thedowntown focused living. One fifth of the total jobs in Calgary are located indowntown. So, buying an inner-city home is not only a great alternative toliving in the far away suburbs, it is also a great investment over thelong-term.Housing prices in Calgary has seenan exponential growth in the last decade and inspite of the slowdown in theoverall economy, the prices have not seen much of a correction in the nearpast. Inner city properties are getting pricy year over year mainly due to thelocation and proximity. This has resulted in skinny homes with lower-maintenanceyard compared to homes in the suburbs, and proximity to inner-city amenities.2.
Vision & MissionThe vision of this start-up is tobe the most trusted and innovative real estate builder in the inner-city developmentsproviding enhanced life style coupled with sustainable quality living in termsof affordability and accessibility. The purpose of this start-up is to acquire suitableor discretionary inner-city land for re-development and build houses using progressivearchitectural engineering and environmentally friendly construction materials. Thisstart-up has also partnered with a company to bring in vast real estateexpertise with infills experience for many years.
3. ObjectiveCalgary’s housing market which is alreadyseeing densification in the inner-city development will reshape the city in thenext 10 to 15 years. The city planningforesees the future growth in the current city boundaries, which means more andmore families are expected to move into the city over the next few decades. Theequation of land to house cost ratio is changing now. The traditional 2/3 to 1/3cost of land to house is not feasible as the life style expectations. Smallerlots and bigger houses are the requirements of the newer generation. The intentof this start-up is to capitalize on the emerging trend of the housing marketand develop into a sustainable and reputable provider of modern and affordablehousing in the city. Some of the salient features of this start-up is to createmore value for money by providing simple yet modern design that reflects urbanlifestyles.
Some of design features of this start-up would include:3.1. Smart Homesi) Superiordesign by maximizing living space by intelligent interior space planningii) Green roof terraces where possibleto reduce storm water run-off and provide oxygen-rich additional outdoor livingspace.
iii) Systems for rainwater harvestingand secondary water source for indoor or outdoor green spacesiv) Radiant heat systems in basementfloors for an efficient, comfortable and dust-free heat sourcev) Electriccar charging station in garagevi) Home Automation 3.2. Efficient Construction Techniquesi) Usingcold pressed steelii) Less woodiii) Recycled materialsiv) Pre-engineered and Pre-fabricatedv) Lightweight and easy transportation 3.3. Modular Stylei) Buildand ship in Modulesii) Durableiii) Sustainableiv) Affordable The idea here is to covert the oldbungalow style homes and build two single homes or side-by-side attached homesutilizing more vertical space and provide reasonable square feet in the samesquare footage of the available land space.
This concept has gained greatacceptance as new families and grandparents have the options to stay closer, familieswilling to upsize or downsize can stay in the neighbourhood together. Also, Calgariansprefer to have neighbourhoods that provides an easy lifestyle, meaning betteraccessibility to work, transportation connectivity; access to amenities, suchas shopping, dining and recreation; close to schools; and they have affordablehousing with smart spaces that work for growing and changing families. Calgary’s inner-city is mostlyfocused on daytime business. The shifts in land-use & zoning rules aregradually transforming inner-city lifestyle and that will boost revenue for thecity. Increasing the density of inner city means more utilization of theinner-city infrastructure and amenities.4.
Scope of the ProjectHigh level project scope includesthe following:4.1. Acquiring suitable land (parceldevelopment and applicable land use district)4.2. Engaging Architects (Design,Development Permits and Building Permits)4.3. Choosing the right Builder4.
4. Construction4.5. Project Management 4.6. Advertising & Marketing4.7. Completion & Warranty 5.
Project Cost and Schedule High level costing of the project is as shown. S.No. Item Description $ Amount 1 Land Cost Single Size lot 550,000 2 Design & Permitting For two single homes 30,000 3 Demolition & Construction For two single homes 756,000 4 Project Management For two single homes 40,000 5 Marketing For two single homes 30,000 6 Total Cost Including GST 1,476,300 7 Profit 12% 177,156 8 Sale Price Each Unit 826,728 A detailed costing will be developed during in thesubsequent stages of the project report 6.
Risk Identification6.1. Permits &Zoning6.2. Project Financing6.3. Overall Real Estatemarket trends6.
4. Liquidity &Interest rate 7. Key Stake holders7.
Financial Institutions / VentureCapitalists7.3. Airport Authority, Calgary7.4. City of Calgary7.
5. Energy Providers & Distributors8. Estimated Timeline (2 units) – 12 months8.1. Land acquisition8.2. Design – 6 weeks8.3.
Financing &Approval – 2 weeks8.4. Permits – 4 weeks8.5. Demolition & Construction– 32 weeks8.6. Completion &Handover – 4 weeks The level one schedule of the aquisiton andconstruction process is as shown below.
Detailed schedule will be establishedin the due course of the development of the project report.9. ConclusionCanadian real estate market seems to be all overthe place with property values increasing in some places and other places seeinga dip. With cities like Toronto and Vancouver almost at its peak and with thenew tax regulation, Calgary seems to be the next destination for foreign buyers.
Foreign investors who want to invest in Canada will shift to Calgary consideringthe attractive returns in Alberta. The province is crawling out of the slowdown,so it is not exactly clear in the minds of the investors the direction it will takein the next few years. One thing is clearthat the real estate market seems to be stabilized in the last few years. With moresustainable solutions and integrating innovative technologies in the real estate,there seems to be a great potential in offering greener, energy-efficient and smarthomes making it more attractive to the first-time buyers and investors to the modernconcept of inner city lifestyle in the expanding city of Calgary. 1 http://www.avenuecalgary.com/City-Life/11-New-Development-Trends-In-Calgary