Place-Making

Amenity that earns its operating cost

14 June 2023 · 6 min read

Landscaped park with palm trees inside a contemporary residential community

Every amenity is a permanent service charge. The question is not whether it sells units, but whether residents will still fund it in year seven.

Amenity decisions are made by sales teams and paid for by residents. That mismatch explains most of the empty clubhouses and dry water features in Egyptian communities delivered over the past decade.

We model amenity as an operating line first: annual cost per unit, expected utilisation, and the service charge level at which collection begins to fail. Anything that cannot survive a seventy percent collection rate is a liability.

Landscape, shade and walkable streets outperform built amenity on almost every measure — lower running cost, higher daily use, less dependence on an operator.

Where built amenity is justified, it should be sized for the completed community, phased with it, and capable of a second use when the first one fades.