With scarcity of land, more and more developers in India are
thinking of going vertical. Mixed-use realty development has been very popular
internationally and that is where the focus of Indian developers is shifting.
Generally in a mixed-use development building the first three
floors are kept for commercial use and the rest for residential. People don't
want much noise or chaos where they live, keeping this thing in mind about five
per cent of space is used for retail.
In Mumbai, Phoenix Mills is into developing mixed use projects. In
Lower Parel, Phoenix has a hotel on top of a mall and in Kurla there is a mall
on lower floors and office on the top. While the mall will provide steady
cashflows to the company, offices will repay the debt of the project.
Hiranandani Developers is another group which is developing mixed
use projects in Panvel near Mumbai and in Chennai. They have already developed
two such projects in the past which have residential complexes, offices and a
Consultants say mixed use projects are becoming popular due to
easy financial closure and use perspective. The popularity of such projects
with the multi-national corporate occupants is very high as these projects have
food courts, night clubs, multiplexes, coffee shops, etc. in the same vicinity.
Traffic problems can also be taken care off with such buildings.
Large townships with offices, retail, housing and commercial
projects is one fine example of mixed-use development. The risk for developers
is even reduced in such projects as if one segment is not doing well, the
developer can shift focus on another segment and once the whole township is
developed the developers can get a good premium. While investors can expect
higher return, end users get the convenience.
However, in India a major chunk of the population come under the low
income group category. The people in this category are those who do not go to
malls and rather do their day-to-day shopping from small shops near their
residences in their colonies.
But, once FDI is allowed in multi-brand retail, mixed-use realty
development will be the future of buildings in India.