Why Mixed-Use Developments are Shaping India’s Urban Skylines

by Angad Bedi, New Delhi, January 2, 2025: Mixed-use developments have gained substantial momentum in India. These modern-day ventures have redefined urban development by making the most of available space and encouraging sustainable living practices. Mixed-use developments excel in terms of convenience and connectivity.

One-Stop Experience

Mixed-use projects incorporate multiple functionalities into a single urban space. They normally integrate residential housing (such as apartments, condominiums, or service apartments), office spaces, business centres, retail hubs, and recreational facilities into one community, thus creating self-sustained urban ecosystems. Additionally, parks, pools, sports arenas, community fitness centres, and movie theatres in mixed-use developments offer a vibrant urban lifestyle. They enable people to live, work, relax, and entertain themselves with minimum daily commute times.

Rapid urbanisation, technological breakthroughs, and evolving lifestyles & buyer aspirations are driving demand for mixed-use complexes. Such projects provide innovative solutions to urbanization issues pertaining to housing and connectivity.

As per NITI Aayog, 40 per cent of India’s population will live in urban areas by 2030. Such a figure is a call for smart land use since high property prices and dwindling land parcels create significant urbanisation challenges in India’s metropolises. Mixed-use developments address these issues by maximising space and encouraging compact urban living.

CBRE’s 2022 India Market Monitor reveals mixed-use developments captured 25 per cent of India’s $7.8-billion real estate investment. This indicates the growing popularity of mixed-use developments among investors and customers. Mixed-use complexes gained immense traction, particularly during the COVID-19 outbreak because of the government’s lockdown and social distancing efforts, which increased demand for independent, multipurpose living and working spaces.

Connectivity is the most prominent characteristic of mixed-use projects. Well-designed pedestrian pathways, improved road access, and public transportation networks ensure seamless movement within and outside these communities. These developments focus on walkability and multi-modal transit options to create convenient and connected spaces.

Mixed Helps All

Beyond aesthetics and design, mixed-use developments promote sustainability by reducing carbon footprints. Improved connectivity increases walkability and mitigates greenhouse gas emissions, while design principles focused on energy efficiency and renewable energy resources support greener urban lifestyles. These developments often feature green building practices, effective waste management, and adaptive reuse of pre-existing buildings, which help minimise ecological disruption, besides contributing to residents’ well-being. 

As per NAREDCO Resurgent Study, India’s green building market will likely generate $39 billion by 2025; mixed-use developments will play a substantial role in making this a reality.

On a social front, these developments promote community feeling through shared spaces and amenities such as parks, fitness centres, cafes, and community gathering hubs. Such spaces also help residents socialise, thus promoting healthier urban living. Furthermore, bringing various businesses and functions under one roof promotes economic opportunities and enables residents to balance work, recreation, and family life without any hitch.

From a financial and operating point of view, mixed-use developments offer lucrative opportunities to developers and investors. Mixed-use developments diversify their risk exposure by combining residential, retail, office, and hospitality properties under one roof. Shared parking and common utilities reduce capital outlay as well as long-term maintenance expenditure. Furthermore, mixed-use spaces have simplified urban living by accommodating the demand for cross-functionality. It quickly adjusts to evolving resident or market needs without requiring substantial structural renovations.

The Future is Mixed

The future of India’s realty sector lies in mixed-use developments. These advancements have led to the expansion of Tier I and II cities as well as metropolitan areas. As the urban population increases, the demand for mixed-use developments will only rise. Such spaces promise more than just homes and workplaces; they promote social interaction, recreation, sustainability, and economic resilience.

Under pressure from urbanization, environmental challenges, and infrastructural needs, mixed-use developments are proving to be a holistic solution to modern urban living challenges. From enhanced walkability to improved economic opportunities and environmental sustainability, thoughtfully designed mixed-use developments offer benefits that align with modern urban goals.

Their integration into India’s urban planning reflects the importance of adaptive design, multi-functional spaces, and community living as the next phase of urban development unfolds. In the coming years, mixed-use developments will undoubtedly dominate India’s urban skyline. This innovative real estate trend is set to lay the foundation for smarter, more sustainable, and connected urban futures.

The author is CMD of the BCD Group. Opinions expressed are the author’s own. 

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