Financial Feasibility Analysis in the Implementation of Modular Houses for Subsidized Housing Projects

Ferry Friyadi Ashari

Abstract


The housing crisis in Indonesia, especially for low-income communities (MBR), demands innovative solutions to address a backlog of over 12 million housing units. This study evaluates the financial feasibility of modular housing in subsidized housing projects using analyses of Return on Investment (ROI), Net Present Value (NPV), Internal Rate of Return (IRR), payback period, and market analysis based on demographic data and consumer preferences. The findings reveal that subsidized modular housing projects can offer competitive returns with an ROI of 150%, a positive NPV of IDR 5.45 billion, and an IRR of 34.12%. The project's payback period is estimated at 2.6 years, significantly faster than conventional construction methods. Market analysis indicates high demand for modular housing units among MBR segments, underscoring the project's relevance. The study also highlights cost-efficiency, with construction expenses reduced by up to 28.4% compared to traditional methods. The research concludes that modular housing is not only financially viable but also addresses MBR socioeconomic needs through sustainable design. Strategic recommendations are provided for the government and developers to optimize modular technology as a long-term solution to Indonesia's housing crisis.

Keywords


financial feasibility; modular homes; subsidized housing;

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References


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DOI: https://doi.org/10.17509/jaz.v8i2.78500

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