The commercial real estate market in the NCR region is undergoing a paradigm shift, with new trends setting higher benchmarks. As businesses seek greater flexibility and investors focus on high-return assets, SCO (Shop-Cum-Office) spaces have emerged as a preferred choice. These spaces seamlessly combine retail and office functionalities within a single unit. Experts highlight that SCO complexes are gaining popularity among developers, particularly in the micro-markets of Delhi-NCR.
SCO complexes are gaining traction due to their ability to accommodate a wide range of businesses, including retail outlets, corporate offices, healthcare facilities, and fitness centers. Their versatility, coupled with affordable entry costs and high rental yields of 9-10%, makes them a lucrative investment choice for both developers and investors. They house high streets, hypermarkets, offices, retail units, co-working spaces, restaurants and cafes, along with spaces for healthcare centres, banks, ATMs, fitness centres, and gyms. According to JLL, the Delhi-NCR region recorded 9.4 million sq. ft of net absorption for 2024, with Q4 alone contributing 2.9 million sq. ft—its best quarterly performance to date.
Unlike conventional malls or commercial complexes, SCOs offer independent ownership, land ownership rights, and the flexibility to modify or expand structures as per business requirements. This autonomy, combined with strategic locations in high-growth corridors of Delhi-NCR, has fueled their increasing popularity. In Noida, micro markets like Noida-Greater Noida Expressway and Greater Noida West region, are the major hubs that are witnessing a shift towards SCO developments. Meanwhile, cities like Faridabad and Ghaziabad are also swiftly turning into preferred SCO destinations. In Gurugram, sectors along high-growth corridors like the Dwarka Expressway, Golf Course Road, and Golf Course Extension Road have been a frontrunner in the SCO boom.
Also Read: 10 hidden Credit Card perks you probably didn’t know about
Commenting on this trend, Vineet Chellani, Founder & CEO of Asset Deals, Asset Group, says, “The rising popularity of SCO developments in NCR reflects how they are serving the modern demand for convenience and multi-functionality. As businesses seek spaces that offer both visibility and operational efficiency, SCOs have gained momentum in various strategic locations of the region. Gurugram, in particular, has become a magnet for such developments. Further, with robust infrastructure development, policy incentives, and high-yield potential, Gurugram’s SCO segment is witnessing unprecedented investor interest, positioning itself as a structural growth story rather than a fleeting trend. Thus, as urban centers expand, we foresee SCO continuing to play a crucial role in NCR’s commercial real estate ecosystem.”
Ashwani Kumar of Pyramid Infratech says, “The evolution of NCR’s commercial real estate is paving the way for SCO spaces. An emerging facet of the SCO developments in Gurugram is a conducive corporate environment and flexibility for investors in building plans and customizations. The scalability, accessibility, and strong demand in the city make SCOs a high-growth investment avenue. Hence, we look forward to developing strategically-located SCO projects that cater to the needs of both startups and established enterprises and allow them to enjoy the freedom of flexibility.”
Moreover, the rising popularity of SCO complexes in Delhi-NCR is driven by a combination of high returns, versatility, and infrastructure growth. Their mixed-use advantage makes them ideal for startups, showrooms, service providers, and corporate offices, allowing businesses to seamlessly integrate retail and office operations. Additionally, government policies supporting mixed-use developments, coupled with metro expansions, expressway projects, and urban infrastructure growth, are further boosting demand. With these advantages, SCO complexes are emerging as a game-changer in Delhi-NCR’s commercial real estate market, offering businesses and investors a profitable, scalable, and future-ready opportunity.”
Harsh Gupta, CEO, Sundream Group, says, “SCO developments are transforming the commercial real estate landscape, especially in high-demand regions like Noida. The hybrid nature of SCOs offers unmatched advantages—independent branding, ownership flexibility, and multi-purpose usage. Further, this asset class provides superior investment returns, making it a lucrative choice for both end-users and investors. Therefore, with businesses’ increasing appetite for self-sustaining retail and office space, we foresee a sustained rise in SCO developments as the go-to choice for modern businesses.”
The demand for SCO complexes is surging across NCR, with Gurugram leading the trend.
“Investors and businesses are particularly drawn to this model due to its high appreciation potential and strong rental demand. Among the prominent sectors of Gurugram, Sector 99 on Dwarka Expressway stands out as a sought-after location due to its strategic positioning, seamless connectivity, and rapid infrastructure growth. Thus, we envision curating SCO projects that cater to both entrepreneurs and established brands, offering them prime locations with modern infrastructure,” says Prakash Mehta, Chairman and Managing Director, Ocus Group.
The rise of Shop-cum-Office complexes, thus, marks a significant shift in Delhi-NCR’s commercial real estate market, driven by high ROI, mixed-use flexibility, and growing infrastructure support. Their ability to cater to diverse businesses, coupled with customization options and strategic locations, makes them an attractive choice for both investors and entrepreneurs. The development is expected to witness sustained growth, especially in emerging hotspots where urban expansion and commercial demand are on the rise.