The idea behind SCOs is to make everything available under one roof. The presence of SCOs has increased public convenience by allowing people to access a variety of daily necessities like department stores, offices, restaurants, and retail establishments all in one location. A study demonstrated that the market has become the most alluring investment opportunity at the moment, with major real estate players launching numerous projects.
According to a research by Gurugram-based real estate advisory firm 360 Realtors, the number of new launches in the Shop-cum-Offices (SCOs) segment has increased by 30 to 40% over the past 12 years. SCOs are marketed as the only real estate class profitable even during the pandemic period.
Ankit Kansal, founder and MD, 360 Realtors, said that the segment is a big-ticket investment and its profitability can be gauged by the fact that the category is growing at a rate of 30-40% annually in terms of area.
The study stated that the investment in the segment can promise an annual appreciation yield of up to 25% which means in the next four years the capital value can double. The rental yield is also around 5-6% which can ensure an additional stream of recurrent income.
"Ensuring maximum utilisation of area whereas investors get elevated yields is the key,” Ankit said.
“The local public also loves the idea of SCOs as everything is available under one roof. One can access grocery stores & departmental stores, high street retail, fine dine, nightclubs, gadget stores, and so many facilities in a single space," he said. "Likewise, there are offices, banks, health & dental care, gyms, fitness studios, gyms, and other facilities available, which makes SCOs a very convenient proposition.”
SCOs plot sizes differ from 2.5 acres to 17 acres depending upon the type and demand of investors and have garnered considerable attention from the F&B sector.
Shop-cum-offices, according to Spaze Group director Harpal Singh Chawla, are the real estate markets' best bets right now. Having a benefit that serves two purposes is preferable to putting all of your eggs in one basket.
"SCOs are the most bankable form of investment which promises far better returns than single-commercial use buildings. It has fared well during the pandemic period and continues its golden run in the money markets," he said.
SCOs are developing in a number of Gurugram's economically viable and central locations, according to Robin Pahuja, director of Elite PRO, who also noted that the large-scale investments in the sector reflect the confidence of both investors and developers. Plots in SCOs are being introduced by developers for investments ranging from Rs 500 to Rs 2,000 crores.
The market will undoubtedly draw a sizable number of people and increase investor interest. Developers are being pushed to raise the stakes and break out in the new experimental real estate class due to the high investment potential and favourable returns.
