Has Gurugram become the most profitable haven for SCOs?

Backed by solid returns and profits on investments, Shop-cum-Offices have become the most tangible and best-performing commercial real estate class in Gurugram. The emergence of many realty corridors like Dwarka Expressway, Sohna Elevated Road, Southern Peripheral Road etc., have provided a level-playing field for many projects to see the light of day, including Shop-cum-Offices.

A thing which works wonderfully well for SCOs is that it has demarcated spaces for offices, retail shops, and stores. SCOs are mixed-use hybrid format commercial establishments with no sole dependency or reliance on any one type of commercial space leasing. It creates functionality for all, representing diversity and assuring bankable consumer sections for each type of space.

Gurugram is counted among the most developed cities in India. Owing to its already established position as an IT hub, most MNCs and top corporate houses have plans to expand their businesses to Gurugram. It also possesses a scalable talent pool for growth derivations. Gurugram is recognised as one of the most robust job markets across India. This activates many opportunities and takers for Shop-cum-Offices.

The return to Work-from-Office (WFO) models, as the Covid-case downsized, has led to an increase in sales of SCO plots. The rise of Moonlighting culture among employees is also persuading companies to either go for work-from-office systems or hybrid working formats. SCOs are having a great run in the real estate markets due to the combination of many factors.

At a time when the pandemic uncertainties marred the growth propositions of other real estate classes, SCO was the only commercial format which promised optimal capital appreciation and a steady current of rental leasings. The prices of SCO plots rangebound from time to time and are not kept at a fixed rate. This allows investors or buyers some kind of space for price negotiations and restores their confidence in healthy market practices rather than facing unilateral, rigid price determination.

When it comes to SCOs, projects located near Dwarka Expressway are considered to be the best investments. According to data from a reliable consultancy firm, the land under SCO development is estimated to be close to 71.6 acres, which shows the popularity of the segment in the city. Most of them are located around Dwarka Expressway. On a yearly basis, the growth of SCO is compounding at a rate of 30-40%.

Shop-cum-Offices are packed with certain essential benefits like pedestrian pathways, power & water supplies, power backup, open spaces, and parking lots. It enhances its usability and makes it more user-friendly. SCOs also have spaces for banks, shopping outlets, retail stores etc., which turns them into all-inclusive commercial establishments.

The future of SCOs looks promising. While Gurugram is headlining the SCO market in the NCR, it is rapidly spreading to other adjoining regions as well. A confluence of dynamic market trends and factors is contributing to the segment’s growth. The multi-usage and diverse nature of SCOs is cited as a critical reason for their expansion, provided by its lucrative location, grand scale envisions, and high-end amenities.