The turning tide in economic forces, coupled with the foresightedness of Grade A developers and acute business preferences are pivoting towards a much sought-after commercial real estate asset class – Shop Cum Office (SCO). This concept infuses retail and commercial usage plots with a thematic spin, that is, freedom to offer customisations, with all basic hygiene elements of a marketplace, in a well-integrated ecosystem. Marketplaces such as Sector 17 in Chandigarh, GK 1 & 2, Khan Market, Connaught Place in New Delhi, and Sector 29, 14 and 15 in Gurugram are testimony to the traditional avatar of this concept.
These variably sized SCO plots could propel an entrepreneur towards kick-starting their start-up idea, or towards fulfilling a long-lost dream of opening a restaurant or utilising the space for office operations. The package of a richly gifted ecosystem supporting retail or office in a conducive marketplace is fast finding currency amongst savvy investors. With wide frontage, ample parking space, adequate power backups and other common facilities such as an allowance to build multiple floors, Shop-Cum-Office plots offer immense possibilities.
Lately, there has been a prolific increase in the demand for these delectable shop-cum-office plots by numerous developers across cities. Undeniably, the mixed-use commercial spaces can help diversify an investor’s risk in their investment portfolio by counterbalancing fluctuations across other relatively riskier asset classes. Various factors work in synergy in favour of an intelligent investor, such as regular cash flows, longer leases and higher income. Capital appreciation coupled with rental yield is the deciding bet for an informed investor wherein investors have a futuristic vision to invest into a product that will witness capital appreciation due to strategic location and higher rental yields owing to the integrated ecosystem of the marketplace.
Now the question arises how to pick the best combination of product and location?
Market places such as Sector 17 in Chandigarh and Connaught Place & GK 1&2 in Delhi witnessed a tremendous price appreciation in their early phases resulting in capital appreciation and lifelong high rental yields for the investors. In the past decade, there has been a marginal y-o-y appreciation as these marketplaces have already saturated and therefore, the demand has now dwindled in the budding micro markets which have greater potential.
As per recent reports, positive sentiments were reflected for commercial realty’s growth in the NCR region. With an increase of 5% in net absorption of office space in Delhi-NCR during the first quarter of 2021 on a quarter-on-quarter basis, with Gurugram contributing 38% of the absorption. Gurugram has become the next winning bet for intelligent investors to expect a huge return on their commercial investments. With planned infrastructure driven growth coupled with existing and upcoming developments, Gurugram holds a sensational appetite for futuristic growth with mega-projects such as the Delhi-Mumbai Industrial Corridor and dedicated Freight Corridor lined up to spur economic growth.
Known for its commercial and economic buzz, Gurugram has attracted diversified players in the spheres of hospitality, healthcare, retail, banking and education and several business districts such as Cyber Hub, DLF Corporate Park, Emaar Business Park, Vatika Business Park, to set up their operations in Gurugram. SCOs in Sector 29, 14 and 15 of Gurugram witnessed a prolific capital appreciation ranging between 80%-150% for the commercial asset class in the past 10 years.
Now, given today’s scenario, it is of utmost importance for an informed investor to take all the necessary factors such as asset class, location, circle rates, social infrastructure, surrounding ecosystem, common amenities, health and sanity enablers, and residential neighbourhood into consideration. The emerging sectors in Gurugram adjoining Dwarka Expressway and Golf Course Extension Road make for an attractive proposition for investors and their business portfolio. This region, having Golf Course Extension Road and the 29 km long Dwarka Expressway as the backbone, has excellent connectivity to all parts of Delhi and Gurugram and enjoys proximity to Delhi IGI airport, New Delhi Railway Station, Huda City Centre Metro Station with swift connectivity to NH-48, Sohna Road and KMP expressway.
Also, owing to the existing residential neighbourhoods of these sectors with the presence of Grade A developers, there has been an uptick in the demand for the commercial asset class. With steady new launches in both residential and commercial real estate, sectors adjoining Golf Course Extension Road such as 49, 65 & 66 and sectors adjoining Dwarka Expressway such as 89, 99, 102, 103 & 114 of Gurugram are geared to appeal to a smart investor.
In order to benefit from any real estate asset class, it is important to go early and to go where others are not. For the marketplaces that have saturated and there is over-demand and under-supply of the commercial spaces, the cost of land and the built up space skyrockets and there is marginal scope for asset appreciation. So, investing in the right product at the right time at an emerging location primed for superlative growth is the mantra to success.
With these SCO plots being offered by Grade A developers in the upcoming nerve centre of the city, investors get an opportunity to appropriate a prime commercial plot with the flexibility to build it as per their own choice and the freedom to either rent out the entire building or an individual floor. These impressive structures with dedicated outdoor spaces, ample parking and an admirable array of convenient features and amenities facilitate one’s business with just the right ecosystem it needs to grow and flourish. Positive market sentiment towards this commercial asset class coupled with the strong appreciation potential of the emerging micro-markets in Gurugram, SCO as a concept is bound to gear for success.
When it comes to investing in this asset class being offered from various developers across the board, due diligence needs to be factored in while making the choice of the developer. Grade A developers with legacy creating portfolios are a safe bet due to their foresighted vision towards creating opportunities in the markets. One such example is Emaar, a developer with remarkable recognition in the real estate industry and marquee projects worldwide.
Emaar India is now set to create a footprint in the emerging nerve centres of Gurugram. With latest additions to the portfolio of Emaar India’s commercial projects consisting of iconic and award-winning SCO – Emaar Business District 65, Emaar India is set to be the flagbearer of the next commercial wave in the Real Estate industry. EBD 65 in sector 65, Gurugram has received a phenomenal market response. EBD 114 in sector 114 Gurugram is another opportunity for those who want to reap returns in future and actualise their dream of making their own office or retail suited to their needs.
These modern Shop-cum-Offices are definitely a good bet to keep an eye out for!
Source : TOI