As the city centre market has matured, demand for quality residential developments has remained strong, with the majority of new space being snapped up before a stone is even laid. The market continues to be driven by two types of investor; the ever present buy-to-let investor and those aiming to see a return from capital growth expected over the development period. A sustained period of low interest rates and relatively strong total returns - particularly when compared to an under-performing stock market - has encouraged many small private investors and syndicates to bail out of equities and invest instead in bricks and mortar. With a significant pipeline of sites planned for development around the city centre complementing ongoing schemes, concerns have been expressed about the sustainability of the city living market. Such concerns can be balanced by economic and demographic trends; the regional economy continues to perform well, with wages and rates of employment both rising and, although the regional population is falling, household size is also falling, indicating demand for new units ought to be sustained. Many argue, however, that the NewcastleGateshead Housing Market Renewal Pathfinder project, to tackle low-demand housing in the area, is already having an impact on the regional housing market. Tackling unpopular areas and abandonment is clearly a necessary aspect of any successful regeneration policy. However, part of the challenge facing those charged with delivering change in areas of low demand is to ensure that any intervention does not undermine the strength of the market in vibrant areas of the city. Time will tell just how significant an impact the area's pathfinder status will have on the overall dynamics of city centre residential property. Despite the current buoyancy in the city centre market, many investors will also be mindful of the ever-present threat of rising interest rates. Further significant rate rises over the next 18 months could trigger a change of tack for many smaller investors. In this scenario, investors are sure to become increasingly discerning about the product they are willing to invest in, and competition for quality developments in prime locations will undoubtedly increase. Whatever the future holds, one thing remains certain. In a city so well served by cultural - as well as leisure and retail amenities - and which continues to attract strong levels of inward investment, the enduring popularity of Newcastle city centre as a place to live and work seems assured. Population rising as imaginative conversions take off Newcastle's long-term decline in population has not only been halted, but the city centre's population has actually increased thanks to city centre living, says Mark Coulter, director of Chesterton Residential. The reason for this reversal has been the number of outstanding residential conversions completed in the city centre ranging from the Turnbull building - one of the best examples of loft-style living in the UK; 55 Degrees North - a conversion of a vacant BT office block and Central Lofts - a conversion of a classic art deco building. These are just a selection of some important projects that have helped to fundamentally change the style of the city centre. The Turnbull is an excellent residential conversion, bringing character and architectural interest to the city centre, as well as a leisure dimension through its ground floor bar and restaurant. Fifty Five Degrees North also combines leisure, through Bar 55, with the 165 residential units which, like The Turnbull, sold extremely quickly. There is also an element of business space - the true mixed-use scheme. Any regeneration can have a knock-on effect on its immediate neighbours. The Central Lofts project has led the way for the regeneration of the West End that is now seeing Dance City being developed. And these successful developments are far from being the end of the City Living cycle. More schemes are coming through, with a key project being the demolition of the city centre eyesore, Westgate House. The scheme that will replace it will bring 100 residential units to the market alongside commercial use. Much of the development to date has been regeneration of buildings through imaginative refurbishment, and while new build is easier to work with and, as a result, cheaper, the refurbished building usually has more character. Some properties have sold at prices reflecting £300 per sq ft. Currently demand is greater for smaller units below the £200,000 threshold, and while the investor market is still very strong, the re-sale market remains patchy with prices correcting. 24-hour lifestyles accommodated Mixed-use developments in city centres are an idea whose time has come. They are the latest sector to shape and influence the property industry and recent research, written by Knight Frank's mixed-use research team, looks at the emergence and future trends of this rapidly evolving sector. This research sets out the Knight Frank view on how to deliver a mixed-use scheme to the market, and outlines the principal factors which are instrumental in its success. * Choice of Site: A low initial site purchase price, the right location, proximity to a transport node or infrastructure improvements and high accessibility * Establish the team: The right combination of specialist professionals is essential to realise the maximum value, efficiency and density from any mixed-use development. * Collaborative Approach: Adopt a collaborative approach in securing planning consent and working with local interest groups to match supply with demand. * Get the Right Mix: It is essential to establish the critical mass of any one use and ensure that the ancillary uses and infrastructure are included from inception. * Architecture and Design: It is important that the architecture and design create a living urban fabric that not only attracts occupiers but also strengthens community links and integrates into the existing neighbourhood. * Delivery to Market: Methodology and timing are key to successfully delivering a mixed-use scheme to the market. * Management: It is essential that the needs of occupiers are considered and satisfied. * Creating Value: Mixed-use development can offer superior returns. Not only can value be created through the regeneration of an area, but also through well-researched and timely delivery to market. The 24/7 philosophy will become an increasingly significant element of the UK economy. It may be some way off, but what is put in place today will reap rewards tomorrow. Mixed-use developments, which cater for the work, rest and play element of people's lives, will prove profitable to investors and developers alike, in accordance with both local and national government sentiment. * Nicola Osborne is head of residential development at the Newcastle office of Knight Frank. Luxurious apartments offer a change from hotels A major redevelopment project, which includes the city's first ever fully serviced, short-term let apartments, is nearing completion in Newcastle city centre. Tyne Square, part of the multi-million pound regeneration of the old Cannon Cinema site in Westgate Road, will provide Newcastle with 28 luxurious, fully serviced apartments. Available for any length stay from a single night, the apartments aim to offer business travellers and visitors to the region a smart, convenient and secure alternative to hotel accommodation. Angus White, of Naylors Chartered Surveyors, advised developers Blue Room Properties, the commercial venture arm of North Housing, on the site acquisition, which was a city council land sale. He said: "This is an important redevelopment project which is helping to breathe new life into the western fringe of Newcastle city centre. "Serviced apartments are becoming increasingly popular in other parts of the UK, but we believe these are the first to be launched in this region." The new Tyne Square complex also includes a purpose-built, continental-style café bar, where diners will be able to enjoy everything from a quick morning coffee to a tasty, late night supper, and a convenience store that will serve not only the Tyne Square residents but also the growing population of the city's Theatre Village. Mr White said: "Tyne Square is one of a number of projects in this increasingly popular part of the city including the Central loft scheme on Waterloo Street, the Print Works in Bath Lane, Citygate on St James's Boulevard and the Jury's Inn Hotel on the old Cattle Market site." Mr White has subsequently been appointed as letting agent for the commercial element of the Tyne Square. | 
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