In any residential society, convenience or society shops are a boon. They are so important and thus always stay high in demand. Though, what perhaps looks like accessibility for the residents of the high-rise buildings, is usually poor business sense for investors.
Various dysfunctional commercial components in housing societies, whether for reasons of high charges or chaotic competition, are significant signs of that.
Property Investors usually point out that society shops are not a good way to go for investment, the reason being high real estate costs. Although in most cases, the complaints are acceptable. In those exceptional cases, it may take an indeterminate period for the commercial shops’ investors to break even.
Considering the case of one of the metro cities, Noida. Here a residential market is available with no less than 4 lakh upcoming apartments.
The main aim of society shops is to offer convenience to people. They are conceptualized with the perception that people need not step out to get their requirements. Today, the commercial FAR (floor area ratio) is fixed at 2 to 5, reliant on the size of the society.
The debatable theme for the investors is either the society shops are worth the amount, considering the high real estate cost of doing business per sq ft. Is it worth it to keep the price of society shops covered, equal to residential selling prices?
Well, having higher shopping centres in the residential areas often adds to the topics. There could be issues affecting noise, safety and privacy. Though, from an investor’s point of view, especially if you are planning to go for society shops for sale in Noida you must the following metrics before making a purchase assurance:
- First and primary, are you sure the catchment area is enough spacious for shops to do business? Are the society shops you are selecting can also cater to the neighbourhood societies?
- An investor should also weigh the possibility of society shops in the struggle with the local shops, as well as if there are any streets or malls within walking distance.
- If you are planning to invest in commercial shops in Noida, you also need to consider the price of the society shop, and the segment of the housing. The purchasing power of the residents is critical for the shops to succeed in housing societies. Sensible rental potential is also subject to investment versus return.
- The next consideration is the upcoming growth potential of the area. A developing area, for instance, shop for sale in Noida sector 132 has better chances of capital appreciation than a saturated micro-market.
- Lastly, don’t forget to check the loading percentage. The creators usually don’t go up to 50% loading with society shops, in comparison to 25%-35% loading on the residential units.
