Numerous buildings are raised every day as a result of increasing urbanization and the need for creating larger number of accommodations for people in the cities. These buildings transform the cities into concrete jungles, without taking into consideration either the identity of the residential neighbourhoods, or the necessary open and green spaces required for a livable and sustainable environment. Hence, there arises a need to overcome the negative effects within those precarious settings and find a solution for improving the quality of life in residential areas, by assessing the impact of different physical density in residential areas on the nature and use of open spaces (NUOS). In the present study, the case study approach is used to conduct a pilot study and compare two residential localities of Jaipur, India, with different physical densities and assess the NUOS, outlining both qualities and deficiencies of their planning. A conceptual framework showing possible correlations between density variables and indicators of NUOS is developed and based on primary and secondary data, a correlation coefficient analysis is undertaken that shows significant relationships between the density variables and indicators of NUOS. It suggests that more people engage in different activities and greater social interaction happens in higher density neighbourhoods. The study also emphasizes on the fact of less ground coverage and more open spaces as a way towards the design of sustainable communities. The distribution of physical and social infrastructure as given by the spatial density variables improves peoples’ willingness to come to these spaces for various activities and social interaction. Thus, it indicates an enhanced use of the open spaces as shown by the positive correlation. The multiple regression analysis is used to ascertain the percentage variation in NUOS with change in physical density variables. The findings are statistically tested and aggregate quality profiles of the open spaces are generated for both the areas. The quality profiles serve as tools to identify commonalities and differences in the indicators of NUOS and help in suggesting measures for improving the conditions. The proposed methodology can be adapted and used for various other existing and upcoming residential areas to assess and improve NUOS and promote sustainable development in our cities.