NAIROBI, Kenya, July 14 – The demand as well as the development of mixed-use properties has been on a progressive rise in Kenya’s urban and suburban areas over the last few years.
This is largely driven by the rapid urbanization rate, which is currently estimated at 4.3 % per annum, with the number of people living in urban areas expected to increase from 13.3 million in 2018 to 21 million by 2030.
The International Council of Shopping Centers defines mixed-use developments (MUDs) as real estate projects with planned integration or a combination of retail, office, residential, hotel, recreation, or other functions.
A good example of a mixed-use development project is the Freedom Heights real estate project along Langata road developed by Laptrust Pension Scheme.
Freedom Heights development comprises a shopping mall with retail, office, and recreational spaces; 252 apartments of two-, three-, and four-bedroom units; playground; kindergarten; utility services plot that supplies power, piped gas, fresh water, and recycled water to the mall and the residences.
The residents can live, work, shop, and play without commuting. All they need to do is to walk down the block.
MUDs provide a lot of benefits to developers and residents. For developers, MUDs allow for the consolidation of infrastructure as opposed to designing and building independent systems.
Developers are also cushioned against volatile economic situations since they have diversified revenue streams. Additionally, retail and office spaces within MUDs can command higher rent than stand-alone developments as they provide a built-in customer base.
MUDs offer a sense of community. Residents can socialize, shop, and live in close proximity, fostering a sense of belonging and encouraging community interaction.
This sense of community is especially vital in urban areas, where people can feel isolated and disconnected.
Looking at it from a sustainability aspect, MUDs reduce the development’s carbon footprint since they provide easy access to shops, schools, recreational parks, banks, and other amenities.
There is a natural reduction in car use and street congestion, thus minimizing air pollution and promoting energy conservation. This also benefits the residents by reducing associated transport costs and promotes a healthy lifestyle.
The downside of MUDs is the complexity in managing them. A broad set of property and facility management skills are required to maximize the benefits of the development and minimize potential conflicts.
Effective management requires an understanding of how commercial uses intersect with residential uses, the need to attract the right mix of tenants and residents, and strong stakeholder management skills.
Mixed-use developments present unique opportunities as they provide solutions to the problem of grossly under-occupied office spaces and low footfall in stand-alone shopping centers.
Developers targeting Millennials and Generation Z, who constitute approximately 75% of Kenya’s population, should consider MUDs that provide holistic “live/work/shop/play” hubs.
The writer is the Executive Director of LASER Property Services—a real estate company that provides professional services in Project & Development Management, Property Valuations, Property Management, and Property Consultancy Services
댓글