By Aman Sharma

There has been no end to the excellent run of Shop-cum-Offices in the NCR markets. Across the NCR, Gurugram has witnessed staggering growth in the launches and economic performance metrics of Shop-cum-Offices. As per a real estate report, there has been a 30-40% uptick in the launches of SCO projects in the last 12 years. The sureshot exposure to reliant and promising customer verticals is accelerating SCO demand which offers a mix of office and retail spaces, especially against the online shopping boom. Shop-cum-Offices are often referred to as the premiumisation of commercial real estate options.

Shop-cum-Offices brought a blooming phase in the commercial and retail real estate sector and became the only performing class that was overhauling valuable returns even during the pandemic period. Retail investors, who have an eye for growth maximisation, are invariably preferring to invest in SCO plots as it is a great opportunity to target office occupiers and corporate workers. There is a growing opinion convergence that Shop-cum-Offices will become a top-performing commercial asset class in the next few years. Gurugram is the life of commercial real estate markets. Shop-cum-Offices have become a yardstick to evaluate the performance of commercial real estate in NCR, due to its burgeoning scalable financial footprints.

The other factor that has considerably contributed to the hegemony of SCO projects is the connectivity factor. Unlike small-sized commercial blockades and arcades, which are located in desolated corners and pockets, Shop-cum-Offices are strategically located in high-end realty belts and corridors, which are also easily accessible from residential zones so that it has a mixed customer base and traceable from every corner.

The overarching principles of optimal space optimisation, cost neutralisation, and efficiency upliftment are brought into pragmatism under SCO establishment. Retail and Corporate Office spaces are of various sizes and configurations as per the space efficiency thinking models. Most of them are based on low-cost maintenance modules, which forward the idea of efficient resource management and eco-friendly characteristics. This facilitates incentives for small and mid-sized investors to look for cost-efficient space deals in Shop-cum-Offices.

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The remote working settings and hybrid working models have not dampened the demand for Shop-cum-Offices. Firms are still looking to expand in new markets, especially in proximity to Dwarka Expressway, as it is nearing the time of its completion. The operationalisation of Dwarka Expressway will shoot up property and SCO prices. Henceforth, investors are eyeing and buying spaces in SCO projects before the price shoot-up.

The commercial real estate market is on the path of momentous growth, as office and retail space deals close on stupendous numbers. Shop-cum-Office demand is in overdrive. There is growth on all fronts- commercial, retail investments as well as private equity investments.

The viability of the SCO category has been long-established. Modern commercial real estate consumers are also warming up to the stylised and well-designed SCO projects. Therefore, the launches and end-user reception have been witnessing an upper-edge graph. Its usability and relevance have seen empowering credibility.

(The author is Director, Spaze Group. The views are personal)