A case for mixed-use buildings

The economy in Malta depends on the success achieved in various economic sectors, whether in tourism and hospitality, construction, the gaming industry, the finance industry or any other sector that generates employment and profit.

There are times when a particular sector may be flourishing, while another may face a temporary dip, or worse.  COVID, for instance, had negative impacts on certain sectors, which are felt to this very day due to changes in working habits or for other various reasons.

Over time, we have seen situations, particularly in commercial buildings, where certain property types become either oversupplied or undersupplied.

An oversupply of office buildings or hotels can cause these properties to underperform due to low occupancy levels.

A sensible answer to this dilemma and predicament is the ‘mixed-use’ building that will serve multiple functions.  In certain localities, well-planned mixed-use buildings can also be suitable, for instance, to integrate residential, commercial, institutional, medical and even recreational uses within the same building. Such developments increase property values, provide jobs and allow efficient use of urban land and resources.

Mixed-use buildings are not a new concept in major cities in Europe and other countries worldwide.  There are some also in Malta that are a proven success.  They are, in fact, an efficient way to support economic growth and development, improving sustainability and flexibility and providing the following benefits:

i. Reducing commuting and the need for travel.

ii. Reducing environmental impact.

iii. Boosting the well-being of occupants and fostering community engagement.

iv. Improving efficient land use in urban districts.

v. Providing greater flexibility in usage and greater revenue opportunities.

vi. Supporting local economies.

Mixed-use buildings promote community and social interaction- Alex Montanaro

Advantages that mixed-use buildings can provide include promoting community and social interaction, encouraging walking and reducing car dependency.  Such developments make for efficient use of urban spaces as users of such buildings would have convenient access to amenities often within walking distance, resulting in fewer cars on the road, lower greenhouse gas emissions and less air pollution.

A mixed-use building would allow owners and business operators the flexibility to diversify the use of all or parts of the building to ensure good occupancy levels.

It is obvious that Malta being a small island, horizontal expansion in the building industry needs to be curbed and only vertical expansion in certain localities makes sense. Allowing increased building height for mixed-use buildings can be considered sensible in localities that are already surrounded with other high buildings.

At the moment, certain ‘height limitation policies’ for mixed-use buildings may be a somewhat grey area for the Planning Authority and subject to interpretation.  Similar to the height limitation policies that allowed hotels more floors, or more height, in zones such as the Paceville and St George’s Bay areas, where high buildings are permitted in certain areas, PA policies should also provide height concessions for mixed-use buildings.

This would assist such buildings to be successful and sustainable, by benefitting from economies of scale, thus enhancing the positive contribution mixed usage can provide to Malta’s product.

Of course, it is of paramount importance that mixed-use buildings are designed and constructed with full respect for positive environmental principles and with close attention to high quality and aesthetics. In Malta, we do have a number of excellent top-class architects and talented professionals at the Planning Directorate who can ensure mixed-use buildings are designed with quality and aesthetics prioritised.

Raising quality standards in the construction industry is essential. Malta needs a quantum leap in quality, both to attract high-end tourists and foreign investors  and, of course, to improve the experience of local residents and businesses.

It would be beneficial for the authorities to give mixed-use buildings the attention and support they need to succeed and achieve high occupancy levels, ultimately contributing positively to local economies.

Alex Montanaro is CEO of the Exalco Group.