Rising land prices and the challenges of acquisition are increasingly shaping the way developers think about their projects. A recent report by Square Yards indicates that land prices, particularly in Tier-II and Tier-III cities, could rise between 25 percent and 100 percent over the next two to four years. At the same time, construction costs are also expected to climb, with a JLL report estimating a 3 to 5 percent increase in 2026.
Developers are thus rethinking traditional formats and opting for mixed-use developments as a strategic response. The idea is simple: To provide convenience in a single space, so people might not need to step out.
For developers, this is seen as an economic choice. As Jitender Yadav, Director of Roots Developers, describes it, the model is the “industry’s answer to rising land costs and urban dwellers’ demand for frictionless living.”
Rajat Khandelwal, group CEO of Tribeca Developers, calls it the “natural evolution of how people want to live. The goal is simple: to create spaces where living is relevant across all segments, adapted to the needs of each micro-market.”
This also reflects a change in how real estate is being conceptualised. Aman Sarin, Director & CEO, Anant Raj Limited, points to the move away from conventional formats. “Real estate is now moving beyond single-use format. There is a shift towards projects that bring all these things together. The idea is to create a low-density, gated work-live-play environment suited to an evolving lifestyle,” he says.
Demand trends appear to support this transition. “This model has consistently seen strong demand, underpinned by robust social infrastructure, healthy rental yields and sustained capital appreciation. This approach extends beyond luxury as convenience, walkability and access to everyday essentials are now expected,” says Aakash Ohri, MD and chief business officer, DLF Homes.
For developers, the benefits go beyond consumer appeal. By combining multiple asset classes within a single project, mixed-use developments create diversified revenue streams. “By integrating luxury housing with boutique retail and flexible workplaces, we are creating a self-sufficient economy. It drives higher footfalls for retail, rentals for offices, and capital appreciation for homeowners,” says Yadav.
The model also gained momentum during the pandemic, when lockdowns and restricted mobility altered how people interacted with their surroundings. In many ways, mixed-use developments offered a practical solution to these constraints, while also helping developers manage rising costs associated with large-scale projects.
Most importantly, they reduce dependence on a single asset class, offering resilience during market slowdowns. Yadav adds that such projects act as a hedge during cyclical downturns. “These projects offer high-density efficiency needed to justify high land values while offering luxurious lifestyles.”
Evolving consumer preferences are further reinforcing this shift. “As choices evolve, there is a clear shift towards integrated environments that bring together work, retail, and leisure. From a business perspective, these offer diversified and resilient revenue streams,” Ohri adds.
While mixed-use developments initially emerged as premium offerings, their positioning has gradually broadened. Early projects were largely defined by luxury—featuring five-star hotels, gourmet dining and high-end retail. Over time, however, the format has become more mainstream, expanding its reach to include the mid-segment.
Rishabh Periwal, promoter at Pioneer Urban Land and Infrastructure Ltd, believes this transition marks a structural shift in the market. “It is seeing a massive surge in the mid-level segment. For these people, it’s not about having a 5-star hotel. It’s mostly about no-commute living.”
He adds: “The value of mid segment is more practical. In such projects, commercial and retail provide an anchor, offering inflation yield that residential sales alone cannot match.”
Geographically, the trend is taking shape across both global and domestic markets. Yadav points out that cities such as Dubai, Singapore and Dallas are leading the way internationally. In India, the momentum is concentrated in Delhi-NCR, Mumbai, Hyderabad, and Bengaluru—markets that combine high density with relatively newer urban infrastructure. “These markets offer high density without congestion of older urban cores. It is also driven by higher migration rates and tax efficiency,” he says.
Within Delhi-NCR, specific micro-markets are emerging as important hubs for such developments. According to Periwal, Golf Course Extension Road, Dwarka Expressway and new Gurugram are at the forefront. “The Golf Course Extension road has emerged as the most successful region for the mixed-use realty revolution in India. Landmark projects in sector 62, 65 and 66 are successfully blending ultra-luxury residences with high street hubs.”
Vineet Dawar, president, sales and strategy, Elan Group, says mixed-use developments are gaining strong momentum as consumers increasingly prefer integrated “live-work-play” environments. While the trend began in the luxury segment, it is now expanding into mid-income projects due to its value proposition. “With residential, retail, hospitality and office components within one ecosystem, such mixed-use developments can generate nearly 20–25% higher revenue compared to standalone assets,” he says, adding that cities like Delhi-NCR, Mumbai and Bengaluru are leading this shift.
As capital continues to flow into these integrated formats, the question remains whether mixed-use developments represent a lasting transformation or a cyclical trend. For now, the direction appears clear. As Periwal says, developers will continue responding to “time poverty and the 15-minute lifestyle,” the two ideas that are increasingly shaping the future of urban living.
First Published: Mar 30, 2026, 13:57
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