International Subdivision development costs?

3 Replies

I have an associate who is currently building a subdivision in Samoa, but he has been having issues bringing services into the development. He seems to be under the assumption that it would cost 12k per lot just for bringing in Power, Water and a concrete pad. I was under the assumption that with labor and materials as affordable over there as they are, that it could be done more affordably. For those of you who have developed subdivisions internationally, what was the cost per lot that you incurred while applying services?

It surely can be done more affordably, but as with all things, you get what you pay for. When you reduce the money on materials and pay the minimum on wages, you will find tools disappear, materials will arrive late and in poor condition, likely not to the spec of the order. I have seen these developments done on a budget, and they usually feel like it!

Last thing you want is for the quality to dip to dangerous levels. It costs serious capital to bring electricity to all the lots in your residential development. If you want to try and cut costs on something so important, you may find the faulty wiring could be the death of you!

Don't forget all the local palms that need to be greased.  I know developers in emerging markets and there is a lot of backroom deals needed to get things done.  Keep in mind that in the US, we have a deed and a proof of ownership trail.  In some foreign countries, possession becomes absolute law.

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