Sidhant Gupta former Director of Kwality ltd talks about The Rise of Shop-Cum-Offices in Delhi NCR
Over the past few years, the Delhi NCR real estate market has experienced remarkable growth, outpacing most other major Indian cities. Riding on this wave of growth, the commercial real estate sector in Delhi NCR has also flourished, with the shop-cum-office (SCO) concept emerging as a major trend.
Sidhant Gupta, former Director of Kwality, discusses this trend and how SCO popularity is gaining momentum.
Shop-cum-office (SCO) spaces are mixed-use commercial properties that combine retail and office functionalities within a single building or complex. Typically, these buildings feature retail outlets on the ground floor to attract foot traffic, while the upper floors are designed for office use.
This unique blend caters to the evolving needs of modern businesses by offering a convenient, multi-functional space that supports both customer-facing operations and administrative work. SCO complexes are designed with separate entrances and elevators for retail and office sections, ensuring ease of access for both customers and employees.
Their versatility allows for a wide range of uses, including retail stores, corporate offices, healthcare centers, fitness hubs, co-working spaces, restaurants, and cafes. This adaptability makes SCOs an attractive option for business owners seeking cost-effective solutions and investors looking for high rental yields and capital appreciation.
According to JLL, the Delhi-NCR region saw a net absorption of 9.4 million sq. ft in 2024 for SCO, with Q4 alone accounting for 2.9 million sq. ft marking its strongest quarterly performance ever.
So what is driving this this growth?
Sidhant Gupta explains, “One of the key reasons behind the rise of SCOs is their ability to cater to diverse business requirements. Unlike traditional commercial setups, SCO spaces allow businesses to operate retail stores, offices, healthcare centers, fitness hubs, and more all within a single unit.”
This flexibility has made them particularly appealing to startups, small businesses, and even established brands looking for cost-effective and efficient solutions. For instance, areas like Gurugram’s Golf Course Road and Dwarka Expressway have become hotspots for SCO developments due to their strategic locations and excellent infrastructure.
Another factor driving the popularity of SCOs is their high rental yields and strong investment potential. With returns ranging from 9% to 10%, these properties offer lucrative opportunities for investors.
Additionally, SCOs provide independent ownership rights and customization options, allowing businesses to modify or expand their spaces as needed. This autonomy is a significant advantage over conventional malls or office complexes. Noida-Greater Noida Expressway and Greater Noida West are prime examples of areas where such developments are thriving due to growing commercial demand.
Infrastructure growth in Delhi-NCR has also played a critical role in boosting the demand for SCOs. Projects like metro expansions, expressways, and urban redevelopment initiatives have enhanced connectivity across the region, making SCO complexes more accessible to businesses and consumers. For example, Faridabad and Ghaziabad are emerging as new hubs for SCO developments due to their improving infrastructure and proximity to major urban centers.
In addition to their functional benefits, government policies supporting mixed-use developments have further fueled the growth of SCO complexes. Haryana’s scheme allowing developers to sell SCO plots with up to four floors for retail or office use has been instrumental in driving demand.
Sidhant Gupta says, “Looking ahead, the future of SCO complexes in Delhi-NCR appears very promising. As businesses increasingly seek flexible, integrated spaces that combine retail visibility with office functionality, SCOs are poised to become the preferred commercial real estate asset class.”
“SCO complexes as a structural growth story rather than a passing trend. Their ability to cater to startups, SMEs, and established brands alike ensures broad market appeal.” He adds.
Overall, SCOs offer investors a scalable, profitable, and resilient investment option aligned with modern business trends and urbanization patterns.
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