education and healthcare and more recently, walkability has been added into the equation. The synergy achieved by adding mixed- use elements to support a residential community can increase the attractiveness of the overall development, rent levels, sales volumes and both the investment value and the market value of the project.
Colliers notes that the price premium models consist of two tiers. Tier one revolves around a multiplicity of components such as; entrances and exits into the property, retail, and social infrastructure facilities. While tier two focuses on the individual unit within the development such as; water views, garden views, golf course views, etc.
According to Colliers, global research indicated that a neighbourhood movie theatre can raise residential property values between 14% - 30%, while an upscale grocery store can increase the values by an average of 20%, compared to communities with limited or no retail facilities.
Colliers says that research in markets such as Dubai and Cairo, reveals that a development with supportable retail facilities achieve a price premium of 15% - 20% compared to communities with limited retail facilities.