1.

Problem Statement
Under the National City development programme launched by the Sri Lankan government it is proposed to develop Diyathalawa area- a rural yet a beautiful hill side small town in Uva Province Sri Lanka. With its unique geological background and pleasant climate and the fact that it being surrounded by many tourist attractions such as Nuwara Eliya, Bandarawela and Haputhale etc, Diyathalawa can be also considered as an area which has the potential to become one of Sri Lankas premium tourist destinations. According to the proposed program of development, Urban Development Authority has reserved and area of about five acres located within the Institute of Surveying and Mapping in Diyathalawa. It is an area of considerably mild sloped, mount shaped land with a flat summit. The Military Base in Diyathlawa surrounded the concerning area from three side whilst other bordered to the main road. This particular portion of land can be used for Industrial purposes, a pumping stations or any other development scheme. But considering its location, social, environmental and economic aspects and most importantly influence of the government military base, the best option is to convert and develop this particular section into a residential area. Constructing a housing scheme in this land can be the stepping point in this long term major development plan. It will be a more cost effective, profitable and sustainable decision taken considering long term advantages. This proposed housing scheme has the ability to attract more investors into these areas and expand the range of possibilities. This proposed housing development scheme contains solutions to most of the problems of the locals. Due its locality Diyathalawa undergo some problems such as difficulties in transportation, lack of other infrastructure facilities, threat of landslides etc. But commencement of one development project will soon be followed by a rapid improvement in existing system of transportation and other infrastructure facilities in within the entire area. This specific project is to identify all the constraints, obstructions and difficulties in geological, social, environmental, economic and technical etc perspectives, which we might face in developing this selected land and overcome them by coming up with the best, most suitable and profitable design for the proposed project.

2. The Proposal
What is the Proposal? The proposal is to construct a housing scheme on an uneven terrain with a fair slope spanning an area of approximately 5 acres. Client Portfolio The proposal is to target a client portfolio consisting of three main groups. The primary target market segment would be real estate investors who would intend to purchase houses for investment purposes rather than for permanent residence. It was identified that due to several constraints and lack of infrastructure in the area the market for permanent residential purposes would be low and hence expected to generate very low profit margins as a result of this low demand. The return on investment might not be justifiable by simply targeting houses for permanent residential purposes. Therefore it is proposed that the housing scheme is primarily targeted towards investors rather than for rather than for permanent residential purposes. This aspect would be further justified in the next subtopic of this segment of the report. Common facilities such as a gymnasium , a restaurant, bar and other recreational facilities would be provided such that investors who acquire houses for investment purposes would be able to rent these houses for short time periods to guests such as newly-wed couples, tourists who seek adventure activities or even as a holiday bungalow to families. This would help enhance the return on investment of these potential investors. These common facilities together with the scenic beauty of the environment would most definitely be a good marketing tool to attract real estate investors and also mean that a higher price could be charged from our organizations perspective. The next target market segment would be targeted towards those who intend to acquire houses for permanent residential purposes. The proposed area for development is within close proximity of the Institute of Surveying and Mapping, Diyathalawa as well as a military base. Hence it is believed that the housing scheme could be pitched towards higher ranked military officers and survey officers who intend to permanently reside in the area.

In addition though it would be a rarity the housing scheme would also welcome any other clients who intend to purchase houses for permanent residential purposes owing to their job profession or career opportunities. The type of Houses Houses belonging to this scheme would range from middle class to semi luxury houses. The semi luxury houses would be two storied, narrow houses primarily constructed at higher elevations and on stepper terrains of the land. These houses would be targeted towards real estate investors who intend to acquire properties and houses for investment purposes and rent it to newly-weds, tourists and also as a holiday bungalow to families. The semi luxury houses would have direct access to the common facilities of the housing scheme such as the gymnasium, restaurant, bar, other recreational activities etc. This would be further described in another subtopic of this segment of the report. Also these houses would be a mix of cabana styled small single room houses as well as a few two bedroom houses to be used as family holiday bungalows by the investors who purchase them. The middle class houses would be two to three bedroom houses targeting military officers, surveyors, or any other potential clients who intend to purchase houses for permanent residential purposes. Justifying the Proposal Why target real estate investors rather than only those who intend to acquire houses for permanent residential purposes? The proposed area for development can be deemed fairly rural and far from a highly developed city such as Colombo. The area, its lack of facilities, gloomy weather conditions that is good for a short stay but not for permanent residence, lack of good infrastructure, health and education would mean that this area is not an area someone would migrate to for unless forced to as a result of his/her job or occupation. Also it is expected that most of those who are from the area and intend to purchase houses would most likely be already having their very own ancestral properties. As a result of the above mentioned reasons the demand for houses for permanent residential purposes would be very low. This would mean that high prices cannot be charged

there by resulting in low profit margins. However instead if houses are sold for investment purposes it could be sold at higher prices thereby resulting in higher profitability. But in order to attract such investors it is essential that we as an organization ensure that they would gain good returns on their investments made. It is necessary that we enhance their return by improving facilities, providing a gymnasium, restaurant and other recreational facilities. This would help improve the rentable income of these properties thereby increasing their return on investment. Investors would be willing to pay a higher price as long as there is sufficient return on investment. Most importantly the ability to sell houses at a higher price would improve our organizations profitability as well. Semi luxury houses were selected for the real estate investor segment of houses because these houses would be for rentable purpose and thus would need to be of higher quality and needs to be different from traditional middle class houses that most would normally live in. Super luxury houses were however not selected as part of this project as it might not provide sufficient income to compensate the increased cost. This would again result in low profit margins. It would also mean that large investments would have to be made by investors and that there would not be a corresponding increase in their rentable income. These semi-luxury houses would be constructed on fairly steeper slopes and higher elevations to provide better scenic beauty and aesthetics which would enhance the return on investment of those who seek to acquire houses for residential purposes. A permanent residential segment was still however incorporated as there still will be a demand for permanent residential purposes in the form of military officers and surveyors who intend to own a house as they would have to reside in the area for a longer time duration. These houses would not attract a high price as a result of the area and as a result of this middle class houses were selected instead of semi-luxury or super-luxury houses. These houses would not have direct access to common facilities but would gain access to common facilities for an additional fee. Any others who would like to purchase a home for permanent residential purposes may still acquire houses belonging to this segment as well.

3. Important Characteristics Considered

4. Design Procedure Adopted

5. Feasibility of the proposal considering technical, economical and socio-environmental aspects

6. Achieving higher status using different guidelines