Mixed-Use African Developments Driven By Lack Of Infrastructure
Mixed-use developments will feature prominently among topics discussed at the upcoming West Africa Property Investment (WAPI) Summit, which is to be held on 28 and 29 November in Nigeria. In many parts across the continent, the lack of infrastructure remains a huge driving force for demand for mixed use developments.
In fact, the past few years have seen an even greater increase in interest in mixed use development schemes, comprising some or all of retail, office and residential facilities. These types of developments continue to remain attractive to investors, as they allow risk to be spread across numerous property segments within one development.
Mixed use developments are being horizontally and vertically integrated. For example, employment and housing in separate buildings, but on the same plot, drives the phenomenon of avoiding traffic congestion. It is contributing to scarcity of land in prime locations, however.
Public And Private Sector Working Together
In the face of increasingly tight public sector budgets, governments remain keen on partnering with the private sector to bring mixed use developments to fruition. Private developers are also keen to work with government on these developments, as that means that much of the red tape that could stall projects are taken care of by government departments vested in seeing the projects come to fruition.
Africa, like other continents, is drawn to mixed use developments resulting from population growth, increased consumer spending, productivity and a growing middle class. Mixed use developments provide far greater accommodation mixes including retail, hospitality, office and entertainment spaces, along with residential spaces.
It attracts investment and development, and continues to provide incentive for multi use nodes that offer growing business and lifestyle destinations. Older buildings being revamped can also successfully attract occupiers, with mixed use buildings being concentrated on one block, as opposed to being spread out. One thing is for certain, however, and that is that the mixed use trend is here to stay.
Image courtesy of : WAPI