Gone are the days when businesses operated in silos, today the concept of symbiotic relationship between retail and workspace, which is largely called Shop-Cum-Office, is gaining momentum. The rising trend of Shop-Cum-Offices is not a blip on the radar, rather it has changed the dynamics of the commercial real estate market which is expected to clock 7-8 percent growth in 2024 as industry experts suggest.
Integrating retail spaces and Shops-Cum-Offices within the same complex is seen as an engine of economic growth, proving a boon for urban development that captures the imagination of both entrepreneurs and investors. The mixed-use environment has acted as a catalyst to stimulate local economies, spiral up property values, and boost tax revenue as well. With the rising graph of popularity of Shop-Cum-Office, the National Capital Region (NCR) and its surrounding areas have witnessed a significant demand for such spaces.
When a new retail center opens, it brings a wave of job opportunities and increases demand for a wide range of workforce. Booming Shop-Cum-Office spaces — the growing appeal of which can be corroborated by the Knight Frank report of a staggering 44 percent year-on-year increase in office space leasing across eight major cities, including Delhi NCR — require sales staff, managers, security personnel, and maintenance workers among others, creating employment opportunities for people in various sectors, including retail, hospitality, and services. This not only benefits individuals by job creations but also injects fresh income into the local economy, fueling further growth. Restaurants, cafes, entertainment zones, and even co-working spaces are becoming increasingly common, creating a diverse mix of activity throughout the day and evening. This translates into a significant boost for local economies.
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Apart from bolstering local economies, a well-planned retail set-up gives a major impact on the urban landscape as well. As complexes of retail and Shop-Cum-Offices gravitate footfalls, they attract attention of local authorities to facilitate infrastructural succor and public transportation. Developers and local administration work in sync to improve public transportation options around these complexes, and roads. Such development of infrastructure invariably adds zing to the life of people in the surrounding vicinity, turning the area dynamic where people can live, work and play that cement community bonding as well.
Commercial venture and residential development go hand in hand that rolls out red carpet for investors and development plans. A property price hike can be seen conspicuously in areas which are embellished with the bustling of commercial activities and influx of visitors. Resultantly, investors and homeowners benefit from the appreciation of property value. Also, when economic activities increase, it augurs well for the state’s coffers. The revenue collections from retail sales taxes, business license fees, and property taxes boost the budget of municipality and local authorities. This fund is utilized for infrastructure development, public services and community programmes.
Sum and substance: Retail hubs and Shop-Cum-Office complexes are deemed to be a vital economic booster for urban development, catering to the needs of the burgeoning population of India. Such mixed-use environments stimulate local economies and open a new vista of prosperity through revenue collection, job creation and property price hike. As India is on its progressive path to be the third largest economy in the world with a GDP of USD 5 trillion, cities and metropolises, including Delhi-NCR, will continue to evolve with more innovative and sustainable retail and office spaces that will create a thriving centre for commercial venture and community engagement.
(By Dr. Renu Singh, Director – Sales & Marketing, Aarize Group)
Disclaimer: Views and facts expressed above are those of the author. They do not necessarily reflect the views of financialexpress.com.