Shop-Office Combos on the Rise: These Mixed-Use Properties Emerge as NCR's Prime Investment Option
In the burgeoning commercial real estate landscape of the National Capital Region (NCR), Shop-Cum-Office (SCO) properties are gaining traction as a lucrative asset class. Delivering dual functionality as retail and office spaces, these mixed-use properties are radiating appeal among investors and entrepreneurs due to their versatility, ownership independence, and high rental yield potential.
According to a recent report by Knight Frank, office space leasing in eight major cities witnessed a significant 44% year-on-year (YoY) increase, underscoring the rising preference for SCOs. Their adaptable nature and relatively affordable entry costs, combined with rental yields approximating 9-10%, render them an attractive investment choice for both real estate developers and investors. The properties encompass high streets, hypermarkets, offices, retail units, co-working spaces, restaurants, cafes, healthcare centers, banks, fitness centers, and gyms. The most compelling feature, however, lies in the complete ownership of both the land and built-up area, securing investors full autonomy over design, construction, leasing, and usage.
The growth of SCOs in Delhi-NCR is intrinsically linked to the maturation of key micro-markets that boast visibility and value appreciation. Notable areas like Noida, Gurgaon, and certain pockets in Faridabad have experienced a development boom in SCOs. These areas are not only densely populated but also strategically connected, making them optimal for office and retail operations. The momentum is further fueled by momentous infrastructure developments such as the Dwarka Expressway, Delhi-Mumbai Expressway, and the soon-to-be-established Noida International Airport, stimulating investor optimism and long-term capital appreciation.
Speaking on the persisting appeal of SCOs, Siddharth Katyal, CEO of Bhumika Group, highlighted the enduring performance of retail-anchored investments, particularly those supported by pillar brands. In the high-growth corridors of Faridabad and Gurgaon, the presence of well-executed, fully leased retail ecosystems fosters consumer engagement and fortifies investor confidence. Preeminent retail segments in fashion, food and beverage (F&B), and wellness propel consumer demand and engender a stable return cycle. As consumer behavior advances toward experience-led retail, institutional-grade developments undoubtedly set the pace in terms of value creation and resilience.
Prakash Mehta, Chairman and Managing Director of Ocus Group, echoed the sentiment, stating that Gurgaon was leading the shift toward SCO complexes with conviction. Investors and business owners alike are drawn to the SCO model due to its potential for capital appreciation, rental returns, and operational flexibility. Among the avant-garde sectors of Gurgaon, Sector 99 on the Dwarka Expressway, in particular, stands out as a commercial hotspot, owing to its unparalleled connectivity and infrastructure growth.
Small and medium-sized enterprises (SMEs) and startups have likewise gravitated toward SCOs, appreciating the versatility and control they offer. In a hybrid work environment, entrepreneurs are seeking self-owned commercial spaces situated near residential catchments.
Ashwani Kumar of Pyramid Infratech asserts that SCOs mark a paradigm shift in Gurgaon's commercial real estate sector, reflecting a departure from one-size-fits-all formats toward autonomy, scalability, and ownership for businesses. Vishal Sabharwal, Head Sales at Orris Group, concurs, contending that SCOs are redefining the commercial property landscape, especially in high-demand markets like Gurgaon. The hybrid format not merely caters to convenience, but rather serves as a competitive advantage, offering an unprecedented capacity for tenants to own, brand, and tailor their workspace.
In conclusion, the flux and allure of SCOs in Delhi-NCR's commercial real estate sector stem from a confluence of factors, such as their versatile functionality, strategic locations, investment potential, adaptability, amenities, and regulatory support. As footfall-dense sites continue to materialize across NCR and infrastructure projects progress, the demand for self-owned, adaptable commercial spaces will remain strong.
- Startups and small to medium-sized enterprises (SMEs) are finding appeal in the versatile and self-owned commercial spaces offered by Shop-Cum-Office (SCO) properties, especially in the high-demand markets of Gurgaon.
- SCOs in the National Capital Region (NCR), particularly those in Gurgaon, are redefining the commercial property landscape due to their hybrid format that provides a competitive advantage, offering businesses autonomy, scalability, and ownership.
- The growth of SCOs in Delhi-NCR is not only attributed to their versatility and strategic locations but also to the ongoing infrastructure developments like the Dwarka Expressway and the Noida International Airport, which stimulate investor optimism and long-term capital appreciation in the healthcare, sports, and other business sectors.
