Mixed-use reality projects slowly gaining edge in India
The Indian infrastructure has gained huge momentum in present times and has contributed significantly towards the growth of Indian economy. Taking into account the recent Real Estate developments, Mixed-use projects can be deduced as one of the most lucrative jaunts for both the domestic and international investors in India. Mixed-use developments play a vital role in Indian-urban reality projects and stretches its roots far back to ancient India where an office-cum-residential enclave was not that uncommon. Few old architectures of the prime cities of India still display buildings having drug and confectionery stores at the ground floor and a residential abode in the upper level, bearing its lineage with mixed-use developments.
A brief insight on Mixed-use projects
To enlighten in this aspect, Mixed-use projects can be simply put up as a conglomerate of various sectors such as entertainment, shopping, retail, hospitality, residential and corporate venues, operating under one roof. Such a concept has hit the headlines in the last few years, since it offers small budgeted buyers commercial spaces at prime locations, at the same time promotes liquidity among the developers- a win-win situation for both. Now that assures an investor that his/her money will not go down the drain. Quite appealing!
Examples of Mixed-use projects across major cities
Mixed-used developments inject an extra dash of life in the projects and make use of the location completely. Consequently, the corporate and residential market experiences a significant boom, without taking any risk into consideration. Few instances, which corroborate the dispersion of mixed-used reality projects may include:
Express Avenue Mall and Marg Junction in Chennai
WorldMark by Bharti Realty Aerocity in south Delhi
Trilium in Amritsar (Punjab)
T Nirmal Lifestyle Mall in Mulund(Mumbai)
DLF Place in Saket
Supernova-Radiance Place in Noida
Brahmaputra City Centre Mall in Guwahati,
Brahma Athena in Gurgaon
Bombay Boulevard in Mumbai
One of the driving reasons why mall developers intend to offer space to hotels is FSI. As an attempt to completely use the available FSI, mall developers offer space to food, multiplexes and entertainment sectors also.
Benefits of Mixed-use developments to retailers
By promoting a mixed-use project, retailers can make use of the available FSI(floor space index) and gain extensively. Usage of the available FSI enhances the essence of the project for the retailers. Mixed-use projects also reduce the project risk for the retailers significantly, by deleting the occurrence of any possible loss.
Mixed-use proportion and classification city-wise
According to Jones Lang LaSalle investment report, retail mall in the prime cities of India failed to do much headway in 2011, although the operational stock in 2012 was nearly 65 million sq ft (all over India). Retail infrastructures are restricted to 5 lakhs-7 lakhs sq feet in Tier 1 cities( Mumbai, Kolkata, Delhi-NCR, Bangalore, Chennai, Pune and Hyderabad), while in Tier 2 cities (Population more than 1 million) it is 3 lakhs-5 lakhs sq feet.
However, with a tremendous hike in rates in India, dice seems to be loaded for investors willing to splurge money in infrastructure. Rent ranging between 9-15% of the retailers’ income, much more than global 4-10%, hiring a space for commercial use surely requires calculated thought and execution.
Experts of real estate advisory firms further confirm that big occupants look for 5 lakhs sq ft and above space for their corporate venture, however, small agencies in search of key location opt for 1000-2000 sq ft area. Hence, with adequate space offers at prime locations, prosperity seems to be in the bag for small occupants. Market reports ratifies that a number of multi-use projects will soon emerge in Tier-2 and Tier 3 cities because of reasonable rentals and growth of the mall culture
