BANGALORE: In major cities, land regulations and growth patterns have made it conducive for property owners to design their properties in such a manner so as to harness maximum returns. One such option is the mixed land use of property. This development pattern not only allows for more floor space index (FSI) it also creates a social fabric for that locality.
The high street shopping destinations such as Indiranagar 100 Feet Road, Koramangala, New BEL Road and Jayanagar are examples of such growth, where residential properties have been redesigned and customised to accommodate retail outlets as well as office spaces.
“According to the zoning regulations, residential zones in the city are also allowed to have commercial and retail areas up to 20-30 percent of the total built-up area depending on the category it falls in and already areas like Richmond town, Malleswaram, Jayanagar, R T Nagar, etc have such development present. Bangalore is a more or less a circular city with the Outer Ring Road and the proposed Peripheral Ring Road defining the boundaries. The radial corridors and main arteries of the city have been designated as mutation corridors according to the development control rules. Plots on such corridors are permitted to have residential development, commercial development, light industries, warehouses, transportation related uses, and urban amenities,” says Naveen Nandwani, Director – South India, Cushman and Wakefield.
Mixed use developments create a captive catchment for retailers and other components. The model is successful in both metro and Tier I cities. In fact, in the light of the changing retail dynamics, the response for such projects in Tier II cities has also been encouraging.
In some cases, mixed use developments can also help decrease the base rental and increase revenue for developers who operate on a revenue share model, which also increases feasibility for retailers. They generate a wholesome social fabric and create destination developments.
Shubhranshu Pani, Managing Director – Retail Services, Jones Lang LaSalle India, says the concept of mixed use development with retail, entertainment, shopping and accommodation all under one roof helps diversify the tenant mix in the total construction, and also derisks the developer’s investment. It also allows the developers to fully use the FSI and location. “Such developments leverage on the location and provide multiple solutions under one canopy”, he says.
Mixed-use developments have evolved to increase the viability of the projects and to use the location’s advantage. Residential and office markets are witnessing buoyant growth and are considered as more risk-free development. A new concept, which is also evolving, particularly due to FSI norms, is serviced apartments as an offering within mixed-use developments.
Malls have good reason to give space to hotels or office complexes these days,” adds Pani. “In the city, arterial roads like Whitefield Road, Bannerghatta Road, Hosur Road and Kanakapura Roads are most likely to witness such mixed use development. Integrated townships are also allowed to have residential, industrial, commercial and high-technology development. However, as such townships need to have minimum 40 hectares of land, they can come up only in the peripheral areas of the city,” explains Naveen.