NEW DELHI – The commercial real estate sector in Delhi-NCR is witnessing a surge in the popularity of shop-cum-office (SCO) complexes, which integrate retail and office spaces within a single development, as published by Money Control.
Real estate experts say SCO complexes are becoming a preferred choice for developers due to their versatility, catering to retail stores, office spaces, healthcare centers, and fitness hubs. The relatively lower entry costs and high rental yields—ranging between 9% and 10%—make them an attractive investment option.
A report by FICCI and Colliers highlighted that India’s commercial office market recorded 66.4 million square feet (msf) of absorption in 2024, with projections indicating demand will reach 65-70 msf in 2025.
SCOs are mixed-use developments featuring high streets, hypermarkets, retail stores, co-working spaces, offices, restaurants, and cafes. They also accommodate healthcare centers, banks, ATMs, fitness centers, and gyms, making them a one-stop destination for businesses and consumers alike.
According to market analysts, India’s office real estate sector is expected to grow from $33.41 billion in 2024 to $117.04 billion by 2029, reflecting a compound annual growth rate (CAGR) of 28.5%. A Knight Frank report revealed a 44% year-on-year increase in office space leasing across eight major cities, further underscoring the rising demand for SCOs.
Manoj Gaur, chairman of CREDAI National and CMD of Gaurs Group, said SCOs have gained significant traction, particularly in Delhi-NCR, due to their efficiency.
“These hybrid structures seamlessly integrate retail, office spaces, recreational facilities, and food zones, meeting the growing demand for convenience and multi-functionality,” Gaur said. “This is why SCOs have become a highly sought-after investment option.”
Market data suggests SCOs have demonstrated substantial capital appreciation, with prices rising by 350% to 450% between 2011 and 2020. The absorption rate has also increased by 25% in recent years, driven by demand from small and medium enterprises (SMEs) and startups seeking flexible business solutions.
SCO projects are expanding across Delhi-NCR, with Gurugram leading the trend. Over the past two years, 71.6 acres of land have been developed for SCOs in the city, with annual growth in the segment estimated at 30% to 40%.
SCOs are typically located in commercial sectors with strong connectivity to major infrastructure. In Gurugram, key hotspots include areas along the Dwarka Expressway, Golf Course Road, and Golf Course Extension Road. Developers such as Adani Realty have been actively selling SCO plots in the city.
Noida is also witnessing increased SCO activity, with key locations along the Noida-Greater Noida Expressway, Greater Noida West, Sector 98, Sector 62, Sector 72, and Sector 73. Faridabad and Ghaziabad are also emerging as preferred destinations for SCO investments.
Mohit Goel, managing director of Omaxe Group, said investors and end-users have increasingly turned to SCOs due to their ability to accommodate diverse businesses.
“In the past two to three years, SCOs have surged in popularity and are now at the forefront of commercial real estate development,” Goel said. “While the entire NCR region has seen a rise in SCO projects, Faridabad remains one of the few areas offering relatively low entry costs and high returns on investment.”
According to market data, several SCO projects have already been successfully operationalized in the NCR. The segment is expanding annually at a rate of 30-40%. In Noida, the sales of SCO plots are increasing, with major developments in key commercial sectors. The potential for capital appreciation in SCOs is evident, as the sector continues to attract both investors and businesses looking for adaptable commercial spaces.
With their strategic locations, high rental yields, and multi-functional appeal, SCO complexes are poised to play a significant role in shaping the future of Delhi-NCR’s commercial real estate landscape.