The land of the nearby Madipur village was acquired by government of India to resettle Hindu and Sikh refugees from Pakistan.

Punjabi Bagh has seen rapid commercial growth since the mid-90s with the opening of innumerable Banks, Salons, restaurants such as Domino's, KFC, McDonald's, Wok in the Clouds, Nandos, Thai Wok, Bikanerwala, Cafe Pasha,[1] etc.

Other establishments include health clubs, ice cream shops, sportswear showrooms like Adidas, Nike, Reebok etc.

It is also well-connected to the Delhi Metro with 4 stations within the main Punjabi Bagh Chowk area.

For recreation and social gatherings there is a club called the Punjabi Bagh Club mainly for the residents offering a lot of facilities like Swimming, Lawn tennis, Badminton, Roller skating, Basketball, Table tennis, Squash, Wedding lawns etc.