Trend of Shop-cum-Office space driving the Realty Market in Tier-II cities
Nowadays the realty sector is focusing more on progressing developments and expansion according to the requirements of the investors. The developers are also considering experimentation with new advancements in the commercial sector.
This encourages the unique commercial setup called as Shop-cum-Office spaces in the market. The concept of Shop-cum-Office has become quite popular after the period of pandemic and works as a unique commercial set up.
Developers are also looking forward to experimenting more with a mixed-use format rather than depending solely on retail formats, quality retail on the lower floors and commercial spaces on the upper floors. Shop-cum-office plots ideal for those looking to invest in a space that has the opinion to establish anything in there from a fine dining restaurant to an upscale shopping store to an office.
However, there is a shift in the approach of developers towards the commercial real estate sector. The majority of developers are now moving towards Tier I and Tier-II cities. Karnal is fast-growing and is one such city that has caught the attention of a lot of developers and buyers during the COVID era.
Strategically located, Karnal is the best gateway to Delhi, Chandigarh, Punjab and Himachal Pradesh. The town Indri is a city attracting various real estate developers due to its direct connectivity to National Highway and the vicinity.
The Town and Country Planning Department by the Government of Haryana has also prepared a draft comprising development plans 2031 for Indri and Assandh towns of Karnal district. The draft development plans were placed before the state-level committee at a meeting chaired by CM Manohar Lal Khattar last year.
“The industry has witnessed a massive change in the retail real estate segment. Changing preferences of investors have urged a rise in the demand for SCO spaces in upright locations. Moreover, developers are also setting up a focus on mixed-use Shop-cum-Office realty formats. With a new launch of Shop-cum-Office commercial lands in Karnal, we are aiming to go well with the necessities of retail and office spaces and catering to the needs of investors. However, we also expect that by the last quarter of 2021, demand for SCO’s would increase more in Tier-II cities owing to better employment opportunities and growth of the real estate sector,” said, Ashish Sarin, CEO, AlphaCorp.
The Shop-Cum-Office projects are the best for investors as they offer a good opportunity to investors in analyzing the market demand at large. While companies across industries have realized the establishments of startups, work from home culture, etc. in the backdrop of the Coronavirus pandemic.
The trend of setting up a combination of retail and office complexes is rapidly spreading among Tier-II cities. The economy has also observed how pandemic has changed the preferences of the workforce as a majority of the population is comfortable working from their home towns where the work and life balance is better. Moreover, there has been a major shift of the workforce towards Tier-II cities, where the cost of living is less as compared to metro cities.
The importance of Shop-cum-office commercial land is playing a key role in Tier-II due to its affordability factor than in Tier I cities. The benefit of large open spaces, low pollution and the ability to stay close to the family enumerating increase in demand for commercial lands. Investors have also started taking interest in better entry prices, flexibility and sizable returns in Tier-II cities.
These cities have advanced connectivity with better quality of life and are now playing a key role in boosting real estate investments. Most Tier-II cities today have good infrastructure advancements like metro stations, transport facilities and availability of basic facilities like schools, hospitals, banks, shopping markets, etc. This has inspired many real estate developers, as well as the government, to focus more on high potential neglected markets.