Society Shops are best, or Mall/ Retail Shops are best, it is always a debatable and interesting point. Buyers and Investors, they always give preferences to buy commercial property like shops, offices, anchor stores, retail shops, food court shops, business suites or studio because commercial property or investment always gives you good return on investment.
Our parents’ generation always says that “Shop is Always Better than Home, because home only gives you Shelter but Shops will give you food with shelter and we can make ample of homes from shop but from home we cannot make shops. Home is always a primary necessity but in today’s time Shop is also become a necessity. Home and Shops both will be an asset, but shop gives us recurring income.
Our main topic is Why Society Shops are better then Mall or Retail Shops. Well in current situation, society shop option is not better, it is best because Mall Shops or retail shops supply are overflow and if we check and understand then in Delhi NCR, there are many Mall who are not running properly or shutted down.
Infact, in the current Corona/ Covid 19 pandemic time as well, malls were closed, and the mall shop owners faced huge loss. Because in Mall, 90% shops are like showroom where shop owners need huge investment and after all these, shop owners need to pay huge EMI, huge electricity bills and maintenance cost. And because of Covid-19, all shop owners are in huge crisis.
But on same time, 70-80% society shops were opened because society shops were supplying necessary items and government allow for same only. And such society shop owners were making profit through selling product on MRP or above the MRP.
We have few more points through we will understand in an easy way-
- Easy to Rent
- Easy to Sale
- Demand & Supply-Inventories Stock
- No High Maintenance Cost
Easy to Rent
Society Shops are always easy to take out on rent in comparison to Mall or Retail shops. Because society shops are within society premises and society people want to but day to day product from local shops not from Mall Shop because for Mall Shop, they must get ready and take car for shopping. So, this is the best advantage, society owners never wait for renting out their shop and the rent is also better than mall shop. For example, in Noida Extension society shop rent would be Rs. 150-200 psqft and Mall shop rent price would be Rs. 80-100 psqft.
Demand & Supply
If we check and analysis then we will get to know that many malls are not running properly, and many malls are closed because of no audience or foot falls. For an example, if in Delhi NCR there are total 100 Malls then only 50-60 malls are operational rest are closed. And out of 50-60 malls only 20-30 malls are in good condition, rest are like for time pass or just trying to work for rent or ROI.
No High Maintenance Cost
Society Shop maintenance is always cheaper than Mall or Retail Shops. There are the reasons because Malls are not only buying or shopping, Malls are also for entertainment, fooding, business meetings, get together, parties, fun etc. But in Society Shops, there are only few shops for buying selling products and that’s why maintenance cost is always lower or cheaper than mall or retails shops.
Easy to Sale
Like as we discussed in rent point, same in sale point as well. Society Shops can be easily sale out than Mall Shops because society shops supply is less and demand is pretty high and it is main reason as well why society shops rate are higher than mall shops. Seller can easily sale his shop on good prices.
ROI (Return on Investment)
In 80-90% cases, Society Shop ROI is better than Mall Shops. 10-20% cases are those, like DLF Mall Noida, Select City Walk Mall type who are performing exceptionally well. No dount, if investment will happen in such project than ROI would be better than any investment and such investments are 1-2 out of 100. So, in a conclusive way, society shops are much better options than Mall or retail shops.