This archive report was first published on 24 November 2019.
On November 24, 2019, a construction management expert based in South Africa cautioned investors about the risks of investing in billion-shilling mixed-use developments.
Profica Group chief executive Tim White noted that some high-rise towers in Nairobi, such as those in the city's central business district, were built without fully considering the expected market demand.
According to White, these projects often failed to meet property investment fundamentals, resulting in a prolonged period before achieving success.
‘We must understand the objectives, purpose and functionality of mixed-use precincts and how they actually work. Our clients and investors require their developments to be financially viable and they need to be planned with return on investment in mind,’ White said.
Despite these challenges, Nairobi has emerged as an attractive location for mixed-use projects, with areas such as Kilimani, Westlands, and Ruiru being identified as favourites.
Real estate firm Knight Frank has noted that Nairobi's mixed-use projects have placed the capital among key global cities where such schemes are reducing the overall commute time.
The firm highlighted several notable projects, including Garden City by Actis on Thika Road, Centum's Two Rivers development, and The Pinnacle in Upper Hill.
