Comparing commercial SCO (Shop-cum-Office) plots in Gurugram and Dholera Smart City in terms of rates, appreciation, and Internal Rate of Return (IRR) involves understanding the real estate dynamics of both locations. Here’s a general comparison and this is completely my individual observation, kindly do your own research before forming any opinion. So, here it goes..
With respect to rates, Gurugram is a well-established commercial hub near India’s capital, Delhi. Rates for commercial SCO plots in prime locations of Gurugram are relatively high, reflecting the city’s prominence. Premium commercial areas in Gurugram, such as Cyber City, Sohna Road, and Golf Course Road, command some of the highest rates in the country. However, Dholera, as an emerging city, offers a more cost-effective entry point for investors. Rates for commercial SCO plots in Dholera are typically lower than those in established urban centers. Dholera’s pricing advantage makes it an attractive option for investors seeking affordable commercial real estate.
Capital Appreciation wise Gurugram has witnessed substantial appreciation in property values over the years, especially in prime locations. High demand and limited supply have contributed to this appreciation. However, the rate of appreciation has stabilized in some areas due to market maturity and saturation. On the other hand, Dholera, being an emerging city, has the potential for significant future appreciation. The development of infrastructure, industrial zones, and smart city features can drive property values upward.
Investors in Dholera will surely benefit from early-stage appreciation as the city continues to grow and attract businesses and residents.
IRR (Internal Rate of Return) for commercial SCO plots in Gurugram is influenced by the initial investment, property rates, and the time horizon. Due to higher initial costs, IRR may be affected. Gurugram offers a relatively stable real estate market with established demand, contributing to steady rental income and IRR for long-term investors. At the same time, Dholera can provide investors with a competitive IRR due to lower initial investment requirements. As the city develops, property values and rental income can increase, potentially leading to a favourable IRR.
Investors in Dholera may benefit from a higher IRR, especially if they enter the market early, capitalizing on future appreciation.
So, to conclude I would say, Gurugram offers a stable and established real estate market with higher initial costs and potentially more moderate IRR. Dholera Smart City, on the other hand, offers lower initial investment requirements, a cost-effective entry point, and the potential for significant appreciation and competitive IRR in the long term. The choice between the two locations depends on an investor’s risk tolerance, investment horizon, and financial capabilities.