W1-2-60-1-6

JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY

UNIVERSITY EXAMINATIONS 2018/2019
EXAMINATIONS

ABR 2305: PRINCIPLES OF REAL ESTATE VALUATION

DATE: MARCH 2019 TIME: 2 HOURS
INSTRUCTIONS: ANSWER QUESTION ONE AND ANY OTHER TWO QUESTIONS

QUESTION ONE (COMPULSORY)

a) A commercial building in Parklands which was constructed last year (2018) has a total
floor space of 1,400 square metres with a lettable floor area of 1260 square metres. The owner
has approached you to value the same for insurance purposes. Commercial rents in Parklands
are at Kshs. 500 per square metre per month net. Assuming permission will be available at the
same plot ratio and site coverage before rebuilding in the event of total destruction and
reconstruction will be completed within 24 months and the cost of construction is at Kshs.
30,000 per square metre. Stating any other necessarily assumptions clearly value the building for
insurance purposes.