A lack of infrastructure, congested traffic, and scarcity of land in prime locations are among the reasons mixed-use developments have become popular in parts of West Africa, particularly Nigeria and Ghana.
The last few years have seen an increase in interest in mixed-use development schemes which include retail, residential, office and hotel and conference facilities.
Investors in the African Western region are attracted to the prospect of mixed-use developments as they gain access to multiple property segments within a single development, thus spreading risk across their real estate interests.
Africa is attracted to mixed-use developments as a result of population growth, productivity and increased consumer spending and a growing middle class who require innovative real estate solutions, believes Paul Onwuanibe, CEO at Landmark Group Africa, quoted by bizcommmunity.com.
The inclusion of hospitality, entertainment, office, retail and residential space in one structure provides comfort, convenience and increased security for the property owner or tenant.
In Ghana, mixed-use developments drive infrastructure implementation and upgrade in the cities. The trend is visible particularly at a neighbourhood level, where most developments are concentrated.
The growth and success of mixed-use developments in Ghana can be attributed to developers and funds entering the market who implement developments based more on a neighbourhood-scale than a project-level scale.
Developments in Ghana and Nigeria are rather based on a neighbourhood-scale as opposed to a project-level scale, commented Bolaji Edu, Broll Nigeria CEO, quoted by the same source.
The main factors that contribute to the success of mixed-use developments at a suburban level include scarcity of land, redevelopment, traffic congestion, lack of proper infrastructure outside the city.
The developments are vertically or horizontally integrated to serve more needs like housing and employment in the same complex, thus eliminating traffic or infrastructure challenges.
Furthermore, mixed-use developments guarantee better property maintenance and safety for the municipal and government structures. Governments like Nigeria have been keen on partnering with the private sector to redevelop land and promote urban renewal.
The West Africa Property Investment (WAPI) Summit, which takes place 28-29 November at the Eko Hotel & Suites in Lagos, Nigeria, will look at real estate development trends and investment opportunities in the region.
For more info on the 2017 WAPI Summit, go to www.WAPIsummit.com.
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River Park Estate is a mixed-use urban development called River Park Housing Estate and located in Abuja, Nigeria. The Estate offers an integrated mix of houses, apartments, shopping malls, parks and recreation areas, places of worship, schools, children’s playgrounds and clinics.
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