Recent quarters are witnessing a new trend in Gurgaon’s commercial real estate – Shop-cum-Office spaces, a mixed-use commercial real estate, which has witnessed notable growth since 2020.
For the uninitiated, SCOs are commercial complexes that comprise retail units, high street, hypermarkets, offices, coworking spaces, restaurants & cafes, etc. SCOs are a complete ecosystem in themselves. They also have banks, ATMs, healthcare centres, fitness centres, gyms, etc. They are generally developed beside large residential communities and are often the center of commercial and cultural living.
Most of the major developers have launched SCO projects in Gurgaon. Currently, there is a total of 71.6 acres of land under SCO in Gurgaon and the market is expanding in the range of 30-40% yearly, as per the research by 360 Realtors. Major developers such as Spaze, M3M, Raheja, Emaar, Vatika, etc. have already launched their SCO projects.
SCOs are an all-encompassing ecosystem
The SCO project, in the beginning, is available as land parcels with basic facilities such as pedestrian pathways, power & water supplies, power backup, open spaces, and parking lots. Investors can purchase land plots and develop them accordingly. However, they have to follow certain predefined designs and elevations.
SCOs are a complete ecosystem in themselves. Generally, shops are on the ground floor while offices are on the higher floors, as they offer a peaceful and serene atmosphere to work and operate. SCOs also have event spaces that can be used for cultural events, product launches, marketing events, etc.
As they are popular addresses, occupiers find them very compelling to own office space in SCOs as it helps them in better networking and exploring new opportunities and client acquisition. Start-ups also like the idea to lease office space in SCOs as they help in better collaboration. Having an office space in a popular commercial center also helps in better corporate branding and access to quality human capital. Employees also love the idea to work from SCOs as they have a host of facilities available nearby.
It is also profitable to own a shop, lifestyle store, showroom, grocery, etc. in an SCO as their growing popularity and high footfalls ensure stable revenue streams.
Apart from offices and retail businesses, SCOs are also becoming a hotbed for writers, artists, lawyers, government officials, investors, etc, as they have plenty of networking and hangout options available.
An Enriching Path Ahead
At present SCOs are popular in Gurugram. However, the idea will break ground in other cities as well due to its inherent attractiveness. It offers a compelling proposition to all the stakeholders involved. Investors get ownership of the land following the payment, which they can build up to G+4. Investors can make an annual appreciation to the tune to 25% annually, which means one can double their investment in just 4 years. However, one should also note that SCOs are high-investment assets and only for HNIs and individuals with deep pockets.
Retailers and offices find it intrinsically attractive to own a space in an SCO. For developers as well it is a profitable idea, as they do not have to do much apart from the basic infrastructure. Finally, the general public also enjoys such commercial hubs as there is plenty to shop and do inside a single premise. No doubt, SCOs are becoming an extension of vibrant urban lives. It has the potential to redefine commercial real estate.
(By Ankit Kansal, Founder and MD, 360 Realtors)