Real Estate Investor Magazine South Africa March/April 2020 | Page 35

Sustainability
Sustainability is a word that pops up a lot in conversation
of late and it’s important to understand why. Sustainable
development is understood as the process followed to meet
the needs of the people, without compromising the needs of
future generations. The recent water crisis is a prime example of
how important practicing sustainability is, and how important
it is to plan ahead.
A major breakthrough in real estate development, especially
during drought and load shedding, has been sustainable
energy solutions. Consumers are increasingly aware of their
environmental footstep and the need for eco-friendly and
sustainable solutions in everyday life has become universally
important.
Sustainable solutions for residential homes are popping
up everywhere and there are many companies in South Africa
looking to capitalize off of this movement. Many developments
have led the way in implementing sustainable development in
their properties. Some have adopted features that save water,
while some, triggered by the prevalent load shedding have
based their sustainable cause on renewable and self-efficient
and/or sufficient electricity.
The Ridge, a green building in the commercial district of
Cape Town’s V&A waterfront, is made with a central focus on
sustainability. This building has proven to lead the way forward
for future developers in South Africa. David Green, the CEO
of the V&A Waterfront says this building seeks to create an
unparalleled internal environment with the highest level of
natural light and fresh air.
“This district of the centre has a commercial property focus,
including a mixed-use element with a strong emphasis on
urban mobility. Other upcoming developments include a
new 6500 m2 office building and the upgrade and restoration
of the historic villas targeting boutique financial, legal and
professional firms,” says David Green.
Student accommodation
A massive drawcard regarding development opportunity
in South Africa is the consistent demand for student
accommodation. There are large well-established universities
all over South Africa and smart developers are obliging by
developing residences for students to live.
Sales Project Manager at Engel & Volkers Developer Driven
Projects, Dustin Folkers is confident that investing in student
accommodation can result in excellent returns. “The annual
occupancy in student accommodation sits at around 97%, with
both the rental value and retail value increasing year on year,”
says Follkers.
An owner-operator of affordable student accommodation
that has presented a good sense of understanding of the need
for affordable student housing in South Africa is Citiq Prepaid.
Offering more than 3000 beds with an ambitious target of 10 000
new beds by 2023, Citiq’s keen focus is on the sustainability of their
services, and satisfaction at the heart of their operating model.
Location & mixed-use efficiency
Location has always been an important factor for developers
in property. Now it’s a matter of getting it right. Where there’s
been nothing, thanks to the development of mixed-use
developments, there will be everything.
A mixed-use precinct is a development that caters to the
live, work and play of people’s everyday lives. This means a
development won’t have to be in a prime area, but amenities will
be close-by. Mixed-use developments include offices, retailers,
restaurants and accommodation – creating an artificial central
business district. Mixed-use precincts tackle issues of traffic
congestion and centrality, providing property owners with the
same benefits of a central location without the hefty price tags.
“A major breakthrough in
real estate development,
especially during drought
and load shedding, has been
sustainable energy solutions.”
With many developments being built to cater for students
studying in a certain area, and the introduction of mixed-use
precincts implementing sustainable solutions in commercial and
residential areas, these developments are attracting property
buyers that are able to cater to their individual wants and needs.
In South Africa, various development companies have
introduced mixed use precincts around the country. At the helm
of this mixed-use property revolution are key developers, such
as the Amdec Group. In an effort to meet consumer needs for
quality and convenience, Amdec Group’s focus has been on the
creation and transformation of precincts to serve as multiple-use
spaces where public and commercial areas are interdependent.
“The resurgence of mixed-use living with an emphasis on
a convenience-based offering is something known as New
Urbanism” says Managing Director of the Amdec Group,
Nicholas Stopforth. An example of New Urbanism is Melrose
Arch, Amdec’s flagship mixed-use development.
“As a resident of the area you can walk from any location of
the precinct to another. Starting at 5 a.m., you can go to the
gym, have a shower, walk across to a coffee shop and order
breakfast. Then you can walk to your office, conduct business,
meet a client for lunch at one of the restaurants. If you’re a
resident, you don’t need to drive anywhere. The point is that
all your daily needs are within walking distance,” says Stopforth.
Many development companies are embracing change and
adapting to the changing needs of property buyers. Using their
resources to cater to the current demand, while considering factors
like traffic congestion, centrality, sustainability and changing
lifestyle needs. If developers manage to merge the trends in a
cohesive way, the call of success will inherently be answered.
SOURCE Citiq Prepaid, Amdec Group, Engel & Volkers
SA Real Estate Investor Magazine MARCH/APRIL 2020
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