A retail store is a business enterprise that sells goods directly to ultimate consumers for non-business use. The goods are generally sold at marked-up prices. There are different types of retail stores that cater to different consumer types and employ different sales techniques.
Retail is the sale of goods or services from a business directly to a consumer for their own use. It can include physical stores, online stores, and mobile stores. Retailers range from large department stores to small, independent businesses. While this trend has been around since long, it got a significant push during the pandemic. Even in the post-pandemic era, investors and company owners want privacy and security along with complete ownership of the land. The Shop-cum-Offices offer all of these benefits and hence are in demand. Falling under the category of mixed-use commercial spaces, SCOs offer optimal capital appreciation and a steady flow of lease rentals. It comes with the least amount of risk, thereby making it a viable investment option.
What if assessee purchase a S.C.F (shop-cum-flat) to get exemption u/s 54/54F, Whether Purchase of SCF (shop-cum-flat) is eligible for the exemption u/s 54 or 54F? or we need to identify the value of commercial portion and residential portion separately.
The impact of SCOs on the Indian real estate sector
According to a Knight Frank’s study, the residential and commercial real estate markets will be comparatively stable in 2022. The commercial real estate market will grow exponentially in the times ahead. This will pave the way for shop cum offices being the industry. Industry experts highlight that the market dynamics, along with the push by grade A commercial developers, is driving the growth of the popularity of the shop cum office plots.
In fact, such properties are being considered as an asset class for the new-age investors that are keen to diversify their portfolios. This is happening because this asset class caters to both the retail and office segments. Additionally, it also provides freedom to the developers so that they can build and customise the land as per their needs. As per the Haryana government, leading developers are ready to walk on this path. They are already ready to manage SCOs and tend to wait for the right opportunity.
These are integrated wellness commercial complexes where the complete ecosystem is built and managed for employees so that they have everything at their disposal. Whether it is banks, pharmacies, or food and beverage retailers, the diverse requirements of office goers are catered to with shop cum office plots. Various commercial spaces take the experiences a notch higher by providing free Wi-Fi, employee lounge, conference rooms, fitness centres, etc.
In fact, commercial developers are now prioritizing greenery and hence ensure that their commercial spaces are lush green. This is happening because consumers demand and prefer spending time in places where there is greenery.
Summing up
Shop cum offices are a unique commercial set-up. This trend of setting up a combination of office complexes and retail is growing rapidly not only in the urban areas but even the Tier 2 cities as well. It is expected that the concept of Shop-cum-Offices will soon become a trend. It is also projected that SCOs, with their strategic geographies and connectivity, will upscale the commercial real estate segment significantly. With wide-open spaces, considerable parking space, adequate power back-ups, the freedom to build multiple floors and the provision of various facilities, shop cum office plots will offer immense possibilities for growth. Hence, we can say that shop cum office plots are inflicting a positive impact on the commercial segment and are redefining the sector.
Shop-cum-Offices (SCOs) are plotted commercial development areas and are ideal for building offices, banks, retail spaces, warehouses, etc.