08/03/2019
How to maximize the development capacity of your plot
By
Silas Anguzu
The development capacity of land is the maximum amount of human activity, working and recreation that a particular piece of land can accommodate. The development capacity is determined by :-
1. The physical nature of the plot i.e. the unique terrain that determines what you can and can’t do.
2. The capacity of social infrastructure including water and sewer services.
3. The economic conditions that determine the cost of construction per unit
So how much of the potential of a property are you able to utilize? It all depends on cash flows. A point reaches were it becomes prohibitively expensive to provide social infrastructure as the building gets bigger. For example, a plot utilizing a septic tank for sewage management can only handle a certain number of people. It’s a limitation otherwise one could end up building a complete sewage treatment plant as was the case in Arua Referal Hospital and will happen at both Mulago Hospitals Kiruddu and Kawempe.
First you would want to determine the maximum holding potential of your plot. Second you want to determine the profitability and point of diminishing returns. Lastly, how much money you can access from financiers to make the project a reality.
