Trendy Shop-cum-Office Buzzes in Delhi Realty Market

Shop-cum-office (SCO) complexes, which mix retail and office spaces in one location, are becoming more and more popular in the commercial real estate market.

According to experts, SCO complexes are becoming a popular option for developers, particularly in the Delhi-NCR (National Capital Region) micromarket.

They claim that the allure of SCO complexes lies in their capacity to house a wide variety of enterprises, including offices, retail establishments, medical facilities, and fitness centers. Because of its adaptability, low entry costs, and high rental rates of 9–10%, SCOs have become a desirable investment choice for both developers and investors.

India's commercial office market recorded a "record-breaking" absorption of 66.4 million square feet (msf) in 2024, according to a joint analysis by FICCI and Colliers. The market is expected to reach 65–70 msf demand in 2025.

High streets, supermarkets, offices, shops, co-working spaces, cafes, and restaurants are all located there. Additionally, they provide areas for banks, gyms, fitness centers, ATMs, and healthcare facilities.

According to market analysts, the office real estate market in India is expected to expand at a compound annual growth rate (CAGR) of 28.5 percent, from $33.41 billion in 2024 to $117.04 billion by 2029.

The growing popularity of SCOs is demonstrated by the notable 44 percent year-over-year (YoY) rise in office space leasing across eight major cities, according to a Knight Frank analysis.

The growing popularity of SCOs is demonstrated by the notable 44 percent year-over-year (YoY) rise in office space leasing across eight major cities, according to a Knight Frank analysis.

Market data indicates that there is a significant chance for capital appreciation, as SCO prices increased by 350 to 450 percent between 2011 and 2020. Over the past five years, the absorption rate has also increased by 25%. Small and medium-sized businesses (SMEs) and startups looking for the business solutions that SCOs provide are mostly responsible for this demand.

Manoj Gaur, Chairman, CREDAI National and CMD Gaurs Group says, “These hybrid structures seamlessly blend retail, office spaces, recreational facilities, and food zones, meeting the modern demand for convenience and multi-functionality. That's why SCOs are a highly sought-after investment option”.