Why Investing In Mixed-Use Property Projects Is The Way To Go

Published on Feb 24th-2015
Integrated townships in Bangalore
Since the 2008 global economic slowdown and the resultant financial pressures, property developers have been making smarter real estate decisions by launching mixed-use projects. These projects are an ideal combination of residential and commercial spaces that are made available to end users.

Many developers in the recent past have spoken about the benefits of mixed-use property projects and how these projects prevented them from falling victim to the slow functioning economy. Moreover, in a world that has a growing population but scarce land, mixed-use projects are very much necessary. Here are 3 reasons as to why investing in mixed-use property projects is a wise decision on your part.

Two Cooks Master The Broth

In order to make ends meet when the financial crisis struck, many developers had started to launch residential spaces within their commercial properties as the demand for the latter dropped. This invariably gave room for developers to reduce risk and diversify. Inevitably, as more people started investing in these projects, their returns were greater than for the ones investing in stand-alone properties.

From the perspective of developers, the first and foremost benefit derived from this project is that it targets all aspects of real estate, be it residential, commercial, or retail. These projects also make for flexible land use, in the sense that the properties can be restructured as per the demand.

Looking at it from the eyes of a home buyer, won’t you be more satisfied if you’re close to both work and social infrastructure facilities? Living in a mixed-use property is the epitome of living in a self-sustained township, which is the current ongoing trend. Whether it’s residences, shopping malls, office spaces, supermarkets, and even high luxury amenities, it is all available in one place and in one area.

To put it simply, residential and commercial properties are in a symbiotic relationship with one another. While those living in houses want to be near their offices, schools, hospitals, and malls, the presence of commercial properties in itself creates the demand for residential housing. As a result, buyers and sellers are brought together under one roof, in an investment friendly environment where the returns are fruitful for both parties.

Location Doesn’t Matter

Whether it’s in a developed or developing locality, a mixed-use property project goes well anywhere. A project in a developed locality has the upper hand but by a very small margin. A mixed-use project that is situated in a fastly developing locality fares better because of the presence of many physical and social infrastructure facilities.

Mixed-use projects require large tracts of land for its development. As cities are getting more congested, real estate is now being developed at peripheral areas of the city where the air is cleaner and there is a lot more greenery. Here, well-planned townships very often come up and offer a better living environment. Though these projects are sought by both investors and end users, the projects usually come up only on the external fringes of the city.

This eases the pressure on infrastructure resources within city limits and allows for more intelligent and better planned real estate to be developed at the city outskirts. What’s more is that investors can procure high returns from these investments. These projects are what fuel the social and economic growth and demand of the area.

Optimistic Future With Bright Investments

The concept of mixed-use property projects is only now getting privatized, as before only public sector companies used to set up integrated townships for their employees. Initially, these projects were considered to be risky-business as it was unheard of in India. But now, they are vastly gaining popularity over the country after its stable success.

Mixed-use projects is a term that is known all over the world, and it is now the future of real estate in our country. As more people are aware of this phenomenon, developers can freely incorporate this project into their plans.

Here are some prominent ongoing townships around Bangalore
About the Author
Ashlesh Mukherjee works as a content editor at CommonFloor which is India's largest online real estate portal.It is dedicated for selling,buying and renting properties online.