Which Real estate company would build a 'palace' in my park?
A company’s profit, or net income, equals total sales minus total expenses. Despite the emphasis with which television and media insist on the presence of high profits in new economy sector, health care and real estate seem still to be on top levels. These two sectors dominate for many years the Sageworks list of the America’s 15 most profitable privately-held businesses.
Most profitable sectors in America
Real estate, one of the highest profitable sectors, are continously looking for new areas to build on. For example in 2011 Donald Trump finished its Ocean Club in Panama. Just to report: the value of the building is 1,2 billion while the total cost is 400 millions (in american dollars). And we need to consider the selling price determines the profit. Interesting to see, Panama real estate price per meter square does not go upper than 5 thousands dollars, for what concerns one of the most prestigious building.
That's not the New York Manhattan situation, in which 5 thousands dollars per meter square is the minimum, and close to Central Park you can find the highest price. How big is the profit in building close to Central Park?
The value of a small palace, 210 m/sq apartments with 10 floor, when posted inside Central Park, would be close to 30 millions. Total expenditure (not reasonably over) 4 millions. Do you notice a higher proportion? Not so bad... As happens in many southern american cities, the space for green area is limited and that's due to buildings speculations. Keeping a park entire, in a high value area, costs in terms of opportunity. But that's part of the reason of the high value!