Shop-cum-Office Investment: New launches in the Shop-cum-Offices (SCOs) segment, touted to be the only real estate class profitable even in the pandemic period, have increased by 30 to 40% in the last 12 years, according to the study by a Gurugram-based real estate advisory firm, 360 Realtors. 

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The study also showed that the segment has emerged as the most attractive investment deal in the present times with major real estate players launching multiple projects. 

Ankit Kansal, founder and MD, 360 Realtors, said that the segment is a big-ticket investment and its profitability can be gauged by the fact that the category is growing at a rate of 30-40% annually in terms of area. 

The study said that investment in the segment can promise an annual appreciation yield of up to 25%, which means the capital value can double in the next four years. The rental yield is also around 5-6% which can ensure an additional stream of recurrent income.

"Ensuring maximum utilisation of area whereas investors get elevated yields is the key,” Ankit said.

What Is Shop-cum-Office

 

Elaborating on the greater public convenience due to the presence of SCOs, he said that consumers can make use of means of different types of daily needs like departmental stores, offices, foods and retail outlets, everything available within the same space.

“The local public also loves the idea of SCOs as everything is available under one roof. One can access grocery stores & departmental stores, high street retail, fine dine, nightclubs, gadget stores, and so many facilities in a single space," he said. "Likewise, there are offices, banks, health & dental care, gyms, fitness studios, gyms, and other facilities available, which makes SCOs a very convenient proposition.”

SCOs plot sizes differ from 2.5 acres to 17 acres depending upon the type and demand of investors and have garnered considerable attention from the F&B sector.

Shop-cum-Offices Safest Investment Bets 

 

Harpal Singh Chawla, director, Spaze Group, said that Shop-cum-offices are the safest bets in the realty markets today. It is better to have a two-in-one kind of benefit rather than solely putting all eggshells in one basket. 

"SCOs are the most bankable form of investment which promises far better returns than single-commercial use buildings. It has fared well during the pandemic period and continues its golden run in the money markets," he said.

SCOs are emerging at various central and economically viable locations of Gurugram, said Robin Pahuja, director, Elite PRO, adding that the grand scale investments in the segment show the confidence of developers and investors as well. Developers are launching SCOs plots worth an investment that ranges from Rs 500 to Rs 2,000 crores. 

The segment is sure to attract a sizeable population and grow investors’ interests. Its high investment potential and good returns are pushing developers to up their ante and break out in the new experimental real estate class.