The Newest Real-Estate Megatrend

Mixed-use developments are one of the most popular real-estate movements of the last 12 months, and are providing advantages all round

For those interested in modern design, high levels of security, and a quality lifestyle, the idea of mixed-use developments is very appealing. Mixed-use developments are properties which fulfil multiple purposes, and include offices, residential spaces, and retail. All of the different elements in a mixed-use property are essentially ‘under one roof’ and are designed to complement each other.

Investing in property is one of the most common investment strategies in the world, but the choice of which type of property is complicating with every passing day. The beauty of a free market is that it runs on an investor’s prerogative, and property trends are reasonably easy to follow. While ten years ago the trend was to buy property to rent out long term, that has changed since the invention of short-term rental apps. However, as we entered a new decade, another trend came to the forefront in the local market – investing in mixeduse developments. ‘Mixed-use’ has become a buzzword in the South African real-estate industry, and here we investigate three of the biggest benefits of this megatrend...

Convenience

The single most appealing aspect of mixed-use developments is the convenience they bring to the lives of those that live and work there. Those who live far from their places of work are often heavily affected by the commute. It takes time and money just to get to work, and the dread that it brings is a big reason behind the popularity of these new developments. The introduction of mixed-use developments has opened up opportunities for people to live in closer proximity to their place of work. Even just having a shopping centre in the building you work in eliminates travel between work, grocery shopping, and home. The convenience that comes with mixed-use developments is far-reaching. “Congestion is a major issue that people want to avoid, and mixed-use suburbs help with this as they allow people to live closer to where they work, with businesses now moving out of the city centres and closer to the suburbs” says Craig Mott, Cape Town Regional Sales Manager for the Rawson Property Group.

Investment Opportunities

Aside from the benefits that mixed-use developments provide to those in them, there is great opportunity for investors. The demand for these properties is high, and only seems to be increasing as property developers get more innovative. If you are willing to bear with the property market ups and downs, investing in off-plan developments will see huge returns. The investment opportunities that come with mixed-use developments are unique and exciting. Because most mixed-use development facilities offer new or refurbished accommodation, convenient amenities, or are situated in interesting urban spaces, the demand for renting is relatively high.

Security

As people look to buy and rent, they are becoming more and more aware of the importance of high security. Over the years, the growing demand for residential security in South Africa has seen many families move toward securityestate living for the high level of security they provide. However, because most security estates are in suburban areas and not in close proximity to city centres, the younger generation found themselves in a tricky position − wanting security and being central. This is where mixeduse developments come in. They provide the safety of estate living as well as the convenience of often being more central. Because most mixed-use developments are built from scratch, developers are placing emphasis on implementing cutting-edge security. The various spaces within mixed-use developments all require their specific security systems, resulting in a higher overall level of safety.

The South African property market has cottoned on to the global trend of mixed-use developments. Developers, buyers, and tenants are all reaping the benefits of the move towards these types of properties. They are making it significantly easier to work, live, and play in one space. Mixed-use developments are a productive use of space, add value to urban areas, and create a sense of community.