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