b) A developer (target rate 15%) is considering the development of a block of flats. He asks you to evaluate a 10000 sq.m. plot (net area) that falls within the residential planning zone Ka4 (building density 120%). Unfortunately there is no comparable evidence for vacant sites. However there are some indications that prices for new flats in the area vary from 2,300 to 2,700 per square meter. Assuming that the construction cost for similar developments is around 1,400/sq.m (all included), and the finance yearly interest rate is 5%, estimate the maximum bid for the plot's purchase. The project is expected to be absorbed in 4 years (from construction start). b) A developer (target rate 15%) is considering the development of a block of flats. He asks you to evaluate a 10000 sq.m. plot (net area) that falls within the residential planning zone Ka4 (building density 120%). Unfortunately there is no comparable evidence for vacant sites. However there are some indications that prices for new flats in the area vary from 2,300 to 2,700 per square meter. Assuming that the construction cost for similar developments is around 1,400/sq.m (all included), and the finance yearly interest rate is 5%, estimate the maximum bid for the plot's purchase. The project is expected to be absorbed in 4 years (from construction start)