The rise of Mixed-Use Projects & the future of Retail in India

As India’s urban landscape evolves, mixed-use developments are redefining how we experience city living and shopping. The rise of these integrated spaces—where residential, commercial, and recreational areas coexist—has sparked a major transformation in retail and urban design. To dive deeper into this trend, we sat down with our Chief Design Officer, Lucio Guerra, to explore the impact of mixed-use projects and what they mean for the future of retail in India. Here are his insights on everything from consumer behavior shifts to the opportunities and challenges these developments present.

1. What is a mixed-use building? 

A mixed-use building is a typology of real estate development that combines different uses under one roof. Buildings with multiple uses have always existed but in today terms their design is such that all functions are connected through well-considered communal spaces that allow for strong business and functional synergies between them and, at the same time, foster a strong sense of community where people enjoy living, working, shopping, relaxing and entertaining. 

2. What makes mixed-use buildings desirable? 

The key aspect that makes mixed-use buildings desirable to City Leaders, Developers, Investors, Financers and I would add End Users (including both residents and visitors), is that they are sustainable and provide a meaningful response to ESG’s frameworks requirements.   

Of course, mixed-use is not always the answer to sustainable development but it certainly is a resilient solution in densely populated and growing cities with reduced land availability, high construction costs and environmental requirements getting, and rightly so, stricter and stricter.  

To begin with the urban density of these developments is normally quite high. Densification is a requirement in major cities where space is limited, and this type of buildings allow to use less soil which can in turn be released for a more permeable and greener urban environment in line with green city policies.  

They also provide a more secure and convenient environment for their users along the lines of the “15-minute city” where residents can find everything they need within a 15-minute walk. These buildings are normally also well connected to public transport infrastructure and therefore they are part of a network of functions easy to reach without the need of car, consequently reducing traffic, pollution and energy dispersion.  

Mixed-use buildings tend to be architectural marvels that improve the city skyline and have an important function, not only as a communal centre of social interaction, but also helping raising self-esteem of the communities they are in. These buildings use latest technologies to lower emissions and higher levels of specifications for materials which are more performing and sustainable helping reducing carbon footprint, including adaptive re-use of pre-existing buildings. 

From a financial point of view putting together different asset classes means de-risking investments and the sharing of facilities (i.e. parking) and systems can reduce capex and long-term maintenance costs. These savings can be invested in creating better connected, digital and greener buildings. Additionally putting together different businesses under one roof create strong synergies between them. 

3. Are mixed-use buildings an architectural trend or they are here to stay? 

We don’t normally like to associate the word trend with architecture as the term is normally reminding us of something transitory while architecture, in its pure form, should be long lasting. We believe that mixed use is a serious typology in architecture and not a trend and it is here to stay developing into different forms and shaping the future of our cities.  

Elaborating a bit on this answer and linking it to our core expertise, Design international has been at the forefront of retail and retail-led design for nearly 60 years. We have been through all sort of “retail trends” which transformed utilitarian boxes to sophisticate shopping, lifestyle and entertainment venues. In recent years we have experience the “so called” retail crisis that started with the world economic crisis in 2007-2009 and was exacerbated by the rise of online shopping, leading to a first answer: the experiential retail.  

However, experiential retail by itself is not enough as it doesn’t completely resolve vacant areas in existing assets or the maximisation of building rights on new plots, to make developments attractive to people and financially viable.  

In this picture adding different uses to retail is not a trend but a necessity.  

4. What are the unique considerations when designing a mixed-use building? 

Good design is fundamental to achieve successful mixed-use developments because we design more than mere buildings. We design sustainable communities that will contribute to the resilience of the urban environment therefore we need to put the people that form these communities at the centre of everything we do. This people centric approach should start with the brief and inform every decision made by the project team during each stage of design. 

We should design with the local community in mind creating a storyline and design that is true and personal to reach as many people as possible and that resonates with local heritage, tradition and culture. Even better we should engage during the design process with the local community that the building will serve, and we should allow for flexibility in the design for personalisation but also to allow for future changes to uses and new trends to make sure that these buildings stay relevant to the people they serve. 

The best way to describe these buildings is vertical cities where functions stack one on top of the other. The connective spaces are therefore vertical but need to be designed to guarantee loads of opportunities for people to engage in social interaction. It is very important to create horizontal and vertical permeability to allow people seamless movement between functions and create plenty of opportunities for people to seat, eat, drink, gather, play, work as they would do in a city scape  

As human beings we need contact with natural elements such as light, vegetation and water. Therefore, in design these spaces we should allow for plenty of natural light so that people are not trapped in an artificial daylight but can feel the passing of time. We should also allow for plenty of green both indoor and outdoor with open air terraces easily accessible from indoor spaces, providing multiple entrances and diagonal connections to avoid the feeling of artificial and forced movement. 

5. What is the ideal Mix and what role Retail plays in it? 

One size doesn’t fit all. The ideal mix needs to be carefully crafted from detailed market research as requirements can change greatly between countries, cities but also within different areas in the same city. As these projects take time to be conceptualised, designed and built, it is not rare that market conditions will change during the development period so allowing flexibility is key to creating successful mixed-use buildings that will withstand the challenge of time also during operation. 

Within this variable mix of functions and uses, the retail component, including f&b and leisure, is fundamental as it naturally provides that connective tissue where the social interaction happens. Shopping is not anymore “the thing to do” but happens in the background and shops are a mix of convenience, to serve the daily functions, and experience, where the physical and digital meet. The retail component becomes the meeting place, a colourful background to the social interaction happening in the malls, plaza and open-air terraces. This goes well with the experiential retail where retailers are creating fun and engaging spaces where customers can shop, enjoy entertainment, and dine all in one place. This makes shopping more enjoyable. As online shopping becomes more popular, physical stores are finding ways to stand out by offering unique experiences that you can’t get online. 

6. And what about India? What is the future of Mixed-Use buildings and what role they will play in the future of Indian cities? 

India has a very diverse society and is experiencing a complex societal change so it is easy to be oversimplistic with an answer, however we can confidently say that Indian people have a strong sense of ‘community’ and ‘convenience’ that accidentally are also key defining traits of Mixed-Use developments.  

Mixed-use buildings are therefore naturally well suited to serve the Indian market that will become more and more sophisticated and demanding in the years to come following the sharp trajectory of the country development. 

As Indian cities grow due to the rapid urbanisation, people will look for better places where to live, work, shop, eat, learn, be active, have fun and simply meet people. Mixed-use developments will provide all of this, conveniently, under one roof while also offering smart technologies, eco-friendly features and creating lively communities that make city living better by tackling problems like traffic and environmental impact.  

We can confidently say that these buildings will contribute to the transformation of Indian cities. 

7. What are the challenges? 

The main challenge to mixed use buildings is regulatory. Current Planning and Building codes are normally written for specific building types and therefore do not recognize the specific requirements of mixed-use buildings. Besides reducing appetite from developers, investors and financers due to the lack of clarity, this makes the whole design process difficult and reduce the opportunity to deliver those efficiencies that we talked about earlier. 

A second challenge is related to development expertise and strategy. Truly successful mixed-use buildings rely on the synergy and seamless connection between different functions and only a few players have the correct expertise within the development and design team to support the vision. Additionally, although de-risking is a positive factor of Mixed-Use buildings divestment could become a challenge. 

A third challenge specific for the Indian market is infrastructural. These buildings are very compact and therefore very hungry in terms of infrastructure requirements (roads and accesses, water, energy, data, public transport). Cities must step up their provisions.  

8. How can they be overcome? 

There is only one way: dialogue and better communication between City Leaders, Local Authorities, Developers, Investors, Financers, Insurers, Consultants and Manufacturers to create solid bases to enable the full potential of these buildings. 

9. Some good examples? 

About ten years ago we started collaboration with one of our long-term retail clients, the Swedish group Ingka Centres, on their new concept of Meeting Place. Their aim was, and still is, to create spaces where people could not only shop, but also meet, get inspired, eat, learn, experience something new, and spend time. Their idea to make it happen was simple by putting people’s needs, wishes and desires at the core of everything they do. 

In the past month of September, we were invited to the grand opening of Livat Shanghai, their first truly mixed-use building designed by Design International.  

The building boasts a GBA of 430,000sqm of retail, restaurants, entertainment and offices, with indoor and outdoor places for cultural events.  

While it is extremely compact and efficient, it is very permeable to the surrounding with underground connections to the metro line and to the neighbouring Soho building (by Zaha Hadid), and several landscaped entrances at ground floor. Unique feature is the Scandinavian Village on the roof of the shopping centre that functions as the new ground floor of the office buildings and connects the different functions seamlessly. You can really walk freely into the building and through it. 

Strategically in September, Ingka Centres launched another mixed-use project designed by us here in India: Lykli Noida with the opening forecast for 2028.  

Lykli Noida is a transit-oriented mixed-use development including Retail, Leisure, Food and Beverage, Indoor and Outdoor Cultural Hubs, Offices, and Hotel. The site is situated on the edge of Sector 51 in the National Capital Region (NCR) and is located approximately 15 km east of Delhi's city centre. It is positioned at a busy road junction and marks the intersection of two bustling metro lines - the Aqua Line, which serves Sector 51, and the Blue Line, which serves Sector 52.  

The project’s overall form is inspired by the concept of confluence. The two towers are positioned to face and mirror the confluence of the train lines at the site. A symbol of the continuous flow of people migrating to Noida from all parts of India, seeking a better and more fulfilling lifestyle, over the last 40 years.  

The aim was to create a landmark for the city of Noida that helps create a unique identity and a sense of belonging through the power of design, while also serving as a meeting place that responds to the needs of its residents, providing opportunities for learning, elevating their status, and recharging in an environment that protects them.  

The exterior draws inspiration from the Himalayas to create a pixelation that generates a cold and quite severe façade designed to shield the people entering the building. In contrast, the interiors are warm and inviting, reminiscent of the banyan tree: a traditional place of shelter and social gathering in Indian villages.   

From the bustling lower levels, the design organises spaces to gradually quiet the flow of visitors as they ascend. At the top levels, dining and entertainment spaces are arranged around a central area that offers both indoor and outdoor settings, filled with natural light and lush greenery, to promote social interactions and relaxation.  

Creating a sense of arrival, the development will place people at the centre of the architectural response, with an emphasis on place-making to foster a strong sense of community.  

 10. A final reflection to conclude? 

Architects are like chefs. 

A chef uses his talent, knowledge and creativity to create the tastiest dishes using the ingredients that are available. The more ingredients he has the more creative he can be and the tastier is the food. 

With mixed-use we have a whole lot of new fresh ingredients to cook tastier and more authentic dishes to satisfy the sophisticated taste of the well-connected and opinionated society we live in.