Shop Cum Office (SCO) is another Avenue for Monetization.
The current year has ushered in a paradigm shift in conventional commercial real estate development models. For some of Gurugram’s most prominent realty players, the modus operandi seems to be pivoting towards shop-cum-office (SCO) plots as a more lucrative business model. Various real estate development giants are, therefore, looking to build a more sustainable economic ecosystem incorporating this dual monetization framework.
According to industry experts, market dynamics incentivize commercial real estate developers to push firmly towards shop-cum-office developments. Since various economic forces are changing the tides of established business models, prudent developers are building integrated buildings that blend shops and offices.
The Shop-Cum-Office projects are the best for investors as they offer a good opportunity to investors in analysing the market demand at large. While companies across industries have realized the establishment of start-ups, work-from-home culture, etc. in the backdrop of the Coronavirus pandemic.
The trend of setting up a combination of retail and office complexes is rapidly spreading among Tier-II cities. The economy has also observed how pandemic has changed the preferences of the workforce as a majority of the population is comfortable working from their home towns where the work and life balance is better. This means that the retail shops get regular customers in the form of the office employees they share space with, while the same office employees find logistical convenience to meet all their needs within the premises of their daily workspace.
Several SCO projects have witnessed an exponential property appreciation, which in turn has a cascading effect on the capital appreciation and thus results in a year-on-year rise in rental yields for their investors. It may not come as a surprise then that with its planned infrastructure-driven growth model, Gurugram has exhibited an insatiable appetite for futuristic growth with vibrant SCO ecosystems prospering across the metropolitan city. The
SCOs that have evolved in Gurugram are best known for their comprehensive commercial integrations. As Gurugram’s kernel is a melting pot of cultures, so are its SCO plots and wildly varying businesses. Commercial players in SCO across Gurugram come from various sectors, including hospitality, healthcare, education, IT, retail, and banking. The shop-cum-offices in Gurugram’s Sector 29, 14, and 15 are quintessential examples of this business confluence. Due to their logistical connectivity, favourable circle rates, proximity to residential neighbourhoods, and accessibility to social infrastructure and essential amenities, this commercial asset class has witnessed a meteoric capital appreciation ranging between 80% and 150% in recent years.
