Mixed-use (residential + commercial) developments are rampant nowadays specially in the Philippines. In fact, mixed-use is the norm in the Philippine real estate industry today. Of course, these developments must have a value that owners can take advantage of. The article will discuss how valuable these developments are for both the developers and homeowners and even for the commercial establishment owners.
Value for everybody
For the developers
Like what most developers will tell you, mixed-use properties offer the best of both worlds. The primary goal of these developers is diversifying and reducing risks especially after the economic crisis of 2008 when the demand for offices significantly declined. These developers realized better returns, and so other developers followed suit.
For these developers, such real estate development model gives them the opportunity of earning higher returns due to the flexibility in land usage notwithstanding the need for bigger tracts of lands. Self-sustainable as they are, the development risks are not only distributed, but there is a prospect to restructure the projects based on the current demands in the market for the type and purpose of the property.
Further, demands for both commercial and residential spaces tend to feed one another. Residents, who get to benefit from the commercial spaces, are not limited to the dwellers of the mixed-used projects alone. People living and renting nearby can also become the commercial establishment’s customers. This is more beneficial if there are other necessary services like hospitals and schools and other entertainment centers within the vicinity. In return, the demand for the residential spaces is created.
For the homeowners
Mixed-use properties are also advantageous because of the projects’ social infrastructures and commercial establishments. For some of them, the primary advantage is living in a community where the workplace is also situated, leading to lower travel time and cost.
Developers continue doing more mixed-used projects so they can cash in on the recent demand for self-sustainable dwellings that include basic physical and social infrastructures. Not only that, these projects capture all the segments from residential to commercial to retail that most of the homebuyers are looking for nowadays with their busy lifestyle.
An India-based real estate developer says that mixed-use developments provide homeowners with all sorts of possible conveniences within an area. Aside from the residences, establishments and offices, there will be facilities and amenities that owners and other occupants can maximize for personal and even corporate use.
If we are going to look at it from a long-term perspective, while the initial cost of paying for a unit is high (be it for a residential or commercial purpose) is high, the benefits of living, staying and communing with these facilities and nearby infrastructures will be immense.
Thereby, the commercial and residential combination creates investment-friendly environments. There are sellers and buyers under one roof which is unquestionably impossible to achieve for standalone residential or commercial development projects alone.
The way forward
Investing in mixed-used projects located in developed locations is more sustainable than those projects being drawn up on upcoming locations due to the presence of physical and social infrastructures. There will be higher appreciation on the part of the investors with these infrastructures, fueling the economic and social growth of the location.
If the developers can make the self-sufficient townships a much better living environment despite being located on upcoming locations, no doubt, homebuyers will seriously consider investing on the mixed-use project. This means well-planned and well-structured mixed-used projects still count.
Evidently, mixed-used projects create a win-win situation between the developers and homeowners, developers and business operators and owners and business operators. Indeed, such a development model gives an opportunity to experience the best of both worlds (residential + commercial) that no other property model can give.