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Future of Real Estate: Rise of mixed-use developments in India 2025

watch time28-Aug-2025
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India’s urban landscape is evolving rapidly, driven by increasing urbanization, changing lifestyle preferences, and growing infrastructure demands.

Indian cities are evolving at an unprecedented pace. With rapid urbanization, growing middle-class aspirations, and limited land availability, real estate developers are moving beyond traditional single-use projects. Such projects that integrate residential, commercial, retail, hospitality, and even entertainment spaces within a single ecosystem are now reshaping India’s real estate landscape.
From Gurgaon’s Cyber City to Mumbai’s Bandra Kurla Complex and Bangalore’s Whitefield, the rise of mixed-use projects has transformed how people live, work, and socialize. By 2025, these developments are not just premium projects but are being seen as future-proof investments aligned with India’s growth story.

A. Key features of mixed-use developments
• Integrated Living: Housing, workplaces, healthcare, education, and retail all within walkable distances.
• Transit-Oriented: Proximity to metro stations, airports, and highways.
• Smart Infrastructure: Energy-efficient design, AI-enabled security, and sustainable green buildings.
• Community Spaces: Parks, cultural centers, and shared recreation zones.
• Sustainability: Solar power, rainwater harvesting, and waste management.

B. Evolution of mixed-use developments in India

Fig 1. Timeline of mixed-use of developmental projects in India
1. Phase 1 (Early 2000s): Malls with residential towers
• Gurgaon, Noida, and Mumbai saw developers experimenting with mall-cum-residential projects.
• These were early-stage integrated projects but lacked large-scale planning.
2. Phase 2 (2010 to 2018): IT Parks + Housing Communities
• With the IT boom, hubs like Bangalore’s Whitefield and Hyderabad’s Gachibowli saw residential complexes emerge next to tech parks.
• Developers like DLF, Prestige, and Phoenix Mills created large-scale mixed-use townships.
3. Phase 3 (2019 to 2025): Mega Integrated Townships
• By 2025, India is seeing smart mixed-use townships that function as mini cities.
• Example: DLF CyberHub (Gurgaon), Bhartiya City (Bangalore), Phoenix Marketcity (Chennai), Lodha Palava (Mumbai).
• These projects integrate housing, retail, healthcare, education, entertainment, co-working, and hospitality within one ecosystem.

4. Phase 4 (2025 & Beyond): What does the future hold?

With the level of advancement in technology and up and up digitization in all industries, the scope of integration is manifold. It can range from basic home automation, stone’s throw distance from public transport to a developing concept of automated ecosystem which requires less labor. The future can literally be anything.

C. Why mixed-use developments are rising in India?

Fig 2. Rising footprint of mixed-use developments in India

The concept of such multi-faceted developments is not brand new. It was alienated and often presumed to be an expensive concept, but it has gained prominence in the recent years due to a fleet of reasons like scarce land availability and increasing need of an integrated lifestyle space. Picking up on this change in market characteristics, developers are now going in for urban spaces where people can live holistically. The space people choose to call their house should be able to accommodate living, work, and socialize without the cumbersome travel time in the city. The traffic congestion, infra shortcomings, and increasing population are the major triggers in metro cities; these mixed-use developments offer a sustainable and more effective solution.

By default, metros like Mumbai, Delhi NCR, Bangalore, and Chennai were the first movers in implementing these types of developments. These developments are driven by expansion plans, changing work life scenarios and parallel economic and infrastructure development. The most highlighting learning is the coexistence of multiple dimensions of real estate under the same roof creating an accessible ecosystem.

This steady shift towards mixed-use projects is driven by changing consumer preferences, urban planning reforms, and lifestyle demands. Let us break down the reasons:
1. Urbanization Pressure
• India adds nearly 12 million people annually to its urban population. This is fueled by the rising scope of working opportunities, infrastructure advancement, and the steady shift from rural, semi urban living to upscale urban living.
• With shrinking land banks in metros, mixed-use developments offer a smarter use of space.
2. Lifestyle Aspirations
• Millennials and Gen Z prefer convenience-driven living.
• Having homes, offices, gyms, schools, and retail under one roof is now seen as a premium lifestyle choice.
3. Commercial Demand
• The IT/Ites boom, flexible workspaces, and global companies have pushed demand for integrated office spaces.
• Retail and entertainment get natural footfalls when paired with residential and commercial zones.
4. Policy and Infrastructure Push
• Initiatives like Smart Cities Mission, Metro Rail expansion, and Gati Shakti master plan encourage integrated urban planning.
• State governments are easing FSI (Floor Space Index) norms to enable vertical, mixed-use clusters.

D. Who prefers it & why?

Fig 3. Capital Appreciation & Rental Yield: Mixed-use Vs. Standalone

1. For investors:
• Higher Rental Yields: Commercial + retail zones within such projects ensure steady returns.
• Capital Appreciation: Integrated developments often appreciate 20–30% faster than standalone projects.
• Diversified Risk: Multiple asset classes (residential + commercial) mitigate dependency on one income source.
2. For End-Users:
• Convenience: One-stop living – home, office, mall, gym, school, hospital nearby.
• Quality of Life: Walk-to-work culture reduces commute stress.
• Community Living: Integrated hubs promote stronger social engagement.

E. Mixed-use development hotspots in India

Fig 4. % share of major 7 metro cities in mixed-use development

1. NCR (Delhi, Gurgaon, Noida)

Delhi is also experiencing a strong shift toward integrated developments, with neighborhoods such as Aerocity, Connaught Place, and Saket turning into vibrant commercial and residential zones.
• Gurgaon’s Cyber City and Golf Course Road extensions are thriving with integrated hubs.
• Dwarka Expressway will further boost demand for large-scale mixed-use projects.

• Aerocity, strategically located near Indira Gandhi International Airport, is a textbook example of this trend. Housing luxury hotels, offices, high-end restaurants, and retail spaces, the district has become a magnet for businesses and travelers alike.
• Similarly, Connaught Place, once a heritage business hub, has transformed into a dynamic zone with a blend of corporate offices, shopping arcades, and dining destinations. Beyond Delhi, the NCR extensions, i.e., Noida and Gurgaon are embracing mixed-use formats, offering a mix of homes, offices, and lifestyle amenities to cater to diverse consumer segments.
2. Mumbai Metropolitan Region (MMR)

As India’s financial capital, Mumbai has emerged as a pioneer in mixed-use real estate projects. With soaring population density and scarce land parcels, developers are increasingly opting for multi-purpose spaces that maximize land efficiency.
• Notable examples can be found in Lower Parel and Bandra-Kurla Complex (BKC), where premium residences, corporate offices, shopping arcades, and entertainment hubs coexist seamlessly.

• These integrated hubs, with co-working spaces, luxury housing, and lifestyle amenities, are setting new standards for urban planning in India.
• The city is also seeing a surge in high-rise developments that merge residential and commercial spaces.

• Rooftop gardens, fitness centers, and retail avenues within the same complexes are becoming common, making life in Mumbai more convenient and efficient while addressing the challenges of limited space.
• Land constraints make mixed-use projects a necessity.
3. Bangalore

Bangalore, widely regarded as India’s tech capital, is increasingly moving towards mixed-use real estate, particularly in Whitefield, Electronic City, and Hebbal. With the IT industry driving employment, there is a pressing need for townships that combine housing, workplaces, retail, and leisure facilities.
• Developments in Whitefield and Outer Ring Road showcase how integrated ecosystems can provide IT parks, residential complexes, and entertainment options within proximity.

• This reduces commuting time while improving quality of life for the city’s tech-driven workforce.
• Prominent developers such as Brigade Group have been instrumental in shaping Bangalore’s  integrated real estate, offering projects that merge hospitality, retail, corporate, and residential functions under one roof, tailored to the lifestyle demands of the modern professional.
• Whitefield, Outer Ring Road, and North Bangalore are hubs for IT-driven mixed-use projects.
• Bhartiya City and Embassy Tech Village are benchmarks.
4. Hyderabad

Known for its thriving IT and business ecosystem, Hyderabad has witnessed rapid growth in mixed-use communities. With the rise of urbanization and demand for live-work-play environments, developers are building projects that bring residential, office, retail, and leisure spaces together.
• Areas like HITEC City, Gachibowli, Kokapet, and the Financial District have become focal points for this trend.

 Landmark projects such as Mindspace, My Home Bhooja, and Knowledge City blend workplaces, upscale residences, retail stores, and entertainment centers to cater to the growing base of tech professionals and expats.
• The IT industry’s dominance plays a key role in driving demand for such projects, allowing professionals to live closer to their workplaces.

 Additionally, compared to Mumbai and Bengaluru, Hyderabad offers relatively affordable land and housing costs, encouraging large-scale integrated developments.
• Backed by government initiatives like the metro expansion, smart city programs, and business-friendly policies, Hyderabad is positioning itself as a role model for mixed-use ecosystems in India.
5. Chennai, Pune, Kolkata
Developers are scaling retail-led townships in these cities, making them emerging hotspots.

F. Benefits of mixed-use developments

The popularity of mixed-use projects in Mumbai, Delhi, Bangalore, and Hyderabad can be attributed to multiple advantages:
Convenience and Connectivity: Easy access to housing, workplaces, shopping, and recreation reduces commuting stress.
Economic Impact: These developments attract businesses, create jobs, and boost local economies.
Sustainability: Walkable communities reduce dependence on private vehicles and support eco-friendly living.
Community Engagement: Shared spaces encourage interaction and foster stronger social bonds.
Optimal Land Utilization: With space scarcity in metros, integrating multiple uses in one project maximizes efficiency.

G. Challenges

While the mixed-use model holds great promise, it comes with challenges. Land acquisition hurdles, zoning regulations, and infrastructure bottlenecks can delay implementation. Balancing the requirements of different stakeholders, corporates, retailers, and authorities also demands careful planning.

H. What is the future?

The way forward lies in greater collaboration between developers, urban planners, and policymakers. With the support of Smart City initiatives, progressive regulations, and transit-oriented planning, mixed-use projects can scale up more systematically.

By 2030, nearly 35 to 40% of new urban real estate supply in India is projected to be in mixed-use format. Key trends include:
• Transit-Oriented Development (TOD) along metro corridors.
• Luxury & Branded Residences within mixed-use ecosystems.
• Work-From-Anywhere Spaces – demand for co-working hubs in residential townships.
• Sustainability-First Projects focusing on net-zero buildings.
The surge of mixed-use developments across India signals a transformative shift in urban planning and real estate investment. Cities like Mumbai, Delhi, Bangalore, and Hyderabad are leading to change, creating dynamic ecosystems that blend work, leisure, and lifestyle in one space.
As the appetite for convenience-driven, sustainable living grows, integrated projects will become the backbone of future cities. Developers focusing on innovative designs, sustainability, and smart infrastructure will not only redefine India’s skyline but also reshape the way urban communities live and work for generations to come.


Source: JLL Primary Research

Author: Sumedha Das

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