Mixed-Use Developments: What's Driving The Trend?
Category Press - News
South Africa, Cape Town, October 2019; The development of mixed-use buildings as an urban living trend is growing in popularity in South Africa. So what's behind this increased demand?
According to DG Properties, affordability is a huge factor behind this growing popularity as many of these mixed-use developments are launching apartments onto the market at highly affordable prices. Another recognised driver is growing demand from Millennials. "Home ownership in the suburbs - once typified as the quintessential property dream - has declined among the millennial generation who prioritise living in vibrant areas which are close to their work and leisure amenities. Millennials are looking for location over square footage. They want to ditch their cars and travel on foot, bicycle, Uber or rely on public transport," says DG. "But it's not just Millennials in search of mixed-use developments. Older professionals who want to escape the daily commute to the office, as well as the elderly who are downscaling and looking for convenience and safety, are all turning their attention to mixed-use developments. Traditionally, people had a negative attitude to the idea of sharing space with commercial areas but this has changed."
CONVENIENCE AND RENTAL RETURNS
DG Properties, explains that mixed-use developments blend commercial office space with retail and residential living, creating an all-in-one location that's built for convenience. "But their attraction doesn't end there: mixed use developments also create exciting investment opportunities with the option of attractive rental returns as most are situated in central urban spaces, so the demand from potential tenants is high."
MAXIMISED USE OF LIMITED URBAN SPACE
"As the world population continues to rise, suitable land for development is becoming scarce. In many cities throughout the world, mixed-use developments are being built to use space effectively in the context of a rapidly growing population and this is no less true for South Africa," continues DG, who says that the high density nature of mixed-use developments means that they can help to reduce urban sprawl through a more effective use of space. This has made them an attractive proposition in cities facing rapid population growth like Cape Town.
SUSTAINABILITY
Mixed-use developments have also been seen as a green and sustainable option. "While the effective use of space itself creates a more sustainable option, a number of developers are using sustainable and environmentally friendly materials that improve energy efficiency for tenants. As well as increasing the life cycle of the building, the energy efficiency factor is a draw-card for tenants."
GETTING THE BALANCE RIGHT
However, DG cautions that in order for mixed-use developments to be a success, getting the right mix of retail, office and accommodation is crucial. If each unit does not complement the other, developers can potentially face a situation of struggling to fill the new space. "For example, if there are retail units in the form of shops, café's and bars, there needs to be the right combination of accommodation and office space for these businesses to receive footfall and patronage. Developers also have to consider the needs of each business and ensure that these needs aren't to the detriment of other units in the developments - i.e. noise disturbance from a restaurant that could potentially affect apartments above it etc."
REDEFINING LUXURY MIXED-USE DEVELOPMENTS
"DG is currently working with developers on a number of extremely exciting mixed-use developments. We're seeing how the right combination of retail, residential and commercial units can work to really create a vibrant and in-demand building. One such development is The Rubik, a luxury mixed-use building situated in the heart of Cape Town's CBD on the corner of Loop and Riebeek Streets."
The apartments, penthouses and offices within The Rubik feature floor to ceiling windows, 24 hour concierge security, state-of-the-art technology, fixtures and finishes, minimalist elements and lots of clean open spaces. These features - coupled with the prime location and spectacular views over Table Mountain, Lion's Head and the ocean - offer highly desirable inner city living, with prices starting from R2,2 million. "The beautiful and modern The Rubik has a distinctly international feel that is in tune with global trends and influences," says Stefanutto. "This exciting building, which will stand as a design beacon in Cape Town's CBD, allows buyers to live and work in a distinctive space within the bustling centre of one of the world's most beautiful cities. Loop Street is vibrant and cosmopolitan, known for its night life, historic buildings, art galleries, antique shops, restaurants, bars and cafés."
REVITALISED ICON
Another example of a mixed-use development in Cape Town's CBD is Foreshore Place, an iconic 70's high-rise in the city's downtown financial district, which is being redeveloped into a mixed-use building which will feature 34 storeys of ultra-modern, luxury residential and commercial premises.
Situated on the corner of Adderley Street, Riebeek Street and St Georges Mall and previously known as the ABSA building, Foreshore Place will have 15 floors of commercial space with the ground floor offering banking facilities, coffee shops, food and other shops. Above this will rise 11 floors of residential units. The fourth floor of Foreshore Place will feature a business and resident's lounge and entertainment terrace.
The residential component will feature its own impressive lobby with 24hr concierge security with access control and CCTV, a laundry area, fully installed VOIP, high-speed fibre connectivity, satellite television ports, air-conditioning, parking bays and much more. The commercial floors will also enjoy their own dedicated lobby with 24 hour concierge security and destination controlled lifts. All offices will have high-speed fibre connectivity, with other features for commercial tenants including disabled restrooms, modern kitchens and communal areas, parking for vehicles, bicycles, e-bikes and scooters, and storage facilities.
"Prices at Foreshore Place start from R1 164 million for the studio apartments. One bed apartments start at R1 569 million, and the two bedroom units start at R3 789 million, ranging up to R4 364 million," explains Stefanutto, who says that living in Cape Town's CBD is particularly attractive, because everything you need is right on your doorstep. "Cosmopolitan, convenient living is in high demand amongst Capetonians, as well as foreign investors, which means that more and more mixed-use developments are under construction in the CBD." "Gone are the days of inner city living being a novelty, and enter the days of "Great City Addresses", such as these mixed-use developments, that are inspiring to live in. We are looking forward to working with developers on more mixed-use developments and seeing the impact these buildings have on our urban spaces in the years to come," concludes DG.
Author: Weekend Argus, November2019 - Nicola Jenvey