Mixed-Use Developments: Centum Real Estate Insights
Written by: Erick Ochieng Edited by: Linet Kanario
For several years, Kenya has been in the middle of what has been dubbed a ‘housing crisis’. Based on the World Bank’s statistics, the housing market in Kenya has a cumulative deficit of 2 million units and continues to grow at a rate of 250,000 units annually. The supply, on the other hand, is constrained, with only 50,000 units being developed annually. However, while house-building numbers continue to fall, the demand for homes is growing alongside the population growth.
Kenya is not the only country in a quest to level up and accelerate construction. Globally, there is an increasing demand for infrastructure which has encouraged construction companies, governments and architects across the world to assess new development methods and techniques. While it’s not a new concept, mixed-use development has emerged in these quests as both a partial solution to the housing crisis and a more sustainable method of urban planning and construction for the built environment sector.
What Are Mixed-Use Developments?
Mixed-use developments (MUDs) have redefined urban planning globally, integrating residential, commercial, retail, and recreational spaces within a single development. These developments promote sustainability, economic growth, and create vibrant communities. According to The Urban Land Institute (ULI), such developments are increasingly favored for their ability to maximize land use and enhance the quality of life.
The Rise of Mixed-Use Developments
Mixed-use properties aren’t a new phenomenon, but in the wake of the housing crisis, greater awareness of sustainability and the impact of the pandemic, they’re growing in popularity. The increasing demand for live-work-play environments has driven the rise of mixed-use developments. Some of the notable mixed-use developments in Kenya are Two Rivers Mall, Vipingo Development, Garden City, Tatu City development and the recently launched Business Bay Square (BBS) Mall in Eastleigh.
MUDs are increasingly becoming a popular destination for locals and tourists alike, offering a diverse range of retail outlets, restaurants, cinemas, and recreational facilities. Internationally exposed Kenyans are increasingly seeking for local brand experiences that align with what they see regionally, continentally and internationally, leading to more demand in such models.
Key Components of Mixed-Use Developments
- Residential Spaces – Offering diverse housing options, from affordable apartments to high-end residences.
- Commercial and Office Spaces – Providing workspaces to reduce reliance on central business districts.
- Retail and Entertainment Facilities – Creating vibrant social hubs with shopping malls, cinemas, and restaurants.
- Green and Recreational Areas – Enhancing livability through parks, sports facilities, and pedestrian-friendly zones.
Benefits of Mixed-Use Developments
Building A Sense of Community
One major advantage of mixed-use buildings is their capacity to encourage a strong feeling of community. These integrated spaces promote social interactions and foster lively, dynamic neighborhoods by combining residential, commercial, and recreational areas. Inhabitants enjoy convenient access to facilities such as stores, eateries, and green spaces, which help create a vibrant environment and enhance their overall well-being.
Optimal Use of Land
Effective use of space is important in urban growth, especially in densely populated regions. By combining various functionalities in one structure, mixed-use developments maximize limited urban space. This will reduce urban sprawl and preserve green spaces, resulting in more sustainable and environmentally friendly cities.
References
Urban Land Institute (2023). Trends in Mixed-Use Development.
World Green Building Council (2022). Sustainable Building and Property Value.
