Flinstone Engineering is ready to launch a program that is new to the Ethiopian real estate industry; build small scale production center, Capital Reported. The program is expected to be launched on May 17, 2014 for interested buyers.

The manufacturing building is going to be around the Gotera area and the building is going to be erected on a 1100 square meters area. The building is to be built within three years, and according to Flinstone.

The new manufacturing building is going to be an eight stories building with 134 production shops. The first five floors of the building will be production units while the sixth is going to be offices. The rest two floors will be used for marketing and business support. The ground floor will be a storage area.

The building is planned to have light industries, furnished with production facilities. Manufacturers will be able to sell their product there at the building.

According to Flinstone’s officials, the company has made detailed researches prior to engaging in this new real estate idea.

Biruk Shimeles, head of Flinstone, explained, “we forecast that the current residential and shopping real estate development will collapse in the near future because wealth will be concentrated on very few people, who are buying one house from developers, and primary buyers will not own adequate capital to buy their own houses”. He continued, “But to combat the challenge people need to acquire more capital. For this reason we have designed a new program that will increase productivity with less cost”. Biruk believes the new scheme will help create a sustainable market for the real estate sector.

Flinstone’s plan is enabling buyers to own a production area by paying a large installment amount. And according to the data the company has analyzed, the target group should be able to buy the units of the building.

Primary and secondary data collected and analyzed by Flinstone reveal that lack of access to finance and well developed property are the challenges for the Ethiopian middle class to flourish.

According to people involved in the making of the research, 42 percent who planned to produce footwear, 53 percent who wished to engage in apparel and 85 percent who planned to engage in printing were willing as well as able to buy production units.

Source: Capital