Any one having idea, if the builders sell the shops within the housing society or they rent it out till eternity?

If these shops are sold, then how is investing in these shops / small commericals (from purely investment pov).
I am talking in respect to societies having atleast 700-800 flats.
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  • There are 2 types of investments:

    1. You run the shop

    2. you resell or lease it


    The first option is good...not the second one.

    With High density projects coming up....why go for a project with 700-800 flats.

    If you plan to open your own shop like General store, dry cleaning, saloon, etc etc...then Go for a region like 137,143, 168 where the nearest Sector market is good 3-4 kms away

    Projects have HIGH DENSITY....at least 2000 flats
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  • For Kendriya vihar it is leased and after some time the quotation is asked for from multiple vendors. You will have to check with the builder you are targeting. For Silver City, there is a laundry, veg store, saloon inside the complex.
    As mentioned by aam aadmi, if you can secure something in Sec137, 143 specially Grocery shop, then it will give good returns.
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  • 1. Identify a project in sectors like 137, 168, 143...which are far from sector markets

    2. Project to have at least 2000 flats (easy to find these days)

    3. Start a store like Small supermarket, Hair salon with Ladies tailor, etc
    and you this small scale business will give you excellent returns !!!

    For people with Business in mind....High density projects offer a lot !!!!!

    These are all goldmines of small scale businesses.

    Resale and rental of shops in such projects are useless and wont yield much return.

    They are ideal if you want to run your own small business
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  • Originally Posted by aam aadmi
    1. Identify a project in sectors like 137, 168, 143...which are far from sector markets

    2. Project to have at least 2000 flats (easy to find these days)

    3. Start a store like Small supermarket, Hair salon with Ladies tailor, etc
    and you this small scale business will give you excellent returns !!!

    For people with Business in mind....High density projects offer a lot !!!!!

    These are all goldmines of small scale businesses.

    Resale and rental of shops in such projects are useless and wont yield much return.

    They are ideal if you want to run your own small business


    AA
    what would be the cost of a shop in those high density projects for a small convinience stores.
    thnaks and regards
    Babubhai
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  • You have to check with Builder.....could be anywhere between 7000-9000 psf
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  • dont take shop in society, very expensive route,

    take a basement or a hall in near by village.
    create a price list of all daily groceries at attractive prices
    offer free home delivery
    get 2-3 cyclewalas for delivery in nearby societies.

    returns will be exceptional and low cost or rents. no agreements with builder etc.
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  • Convenience store at socisty is not a good business option unless you are doing something for time pass.

    Overhead is very high where as volume is quite low ... hence your pricing will not be competitive. People will buy items like news paper, bread, eggs, cold drinks etc for urgent need. So you end up with non selling items and finally with little stocked shop ...

    On the other side, what teen patti said is a very viable business route. Just print 5000 one page pamplate every two weeks and distribute to societies with order and home delivery option.

    Business are either "high volume low margin" or "low volume high margin" ... rest does not work in long term.
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  • Originally Posted by teen_patti
    dont take shop in society, very expensive route,

    take a basement or a hall in near by village.
    create a price list of all daily groceries at attractive prices
    offer free home delivery
    get 2-3 cyclewalas for delivery in nearby societies.

    returns will be exceptional and low cost or rents. no agreements with builder etc.



    You should keep this in mind:

    1. With trends of Walk in supermarkets..people like to go to a supermarket..choose and compare their own product in a nice comfortable space.....societies usually have such mini marts..

    2. When commercials are inside a society then usually the maintenance agency DOESNT ALLOW outside suppliers from such local shops...to promote their own stores....else shopkeepers wont open stores.

    3. Commercials INSIDE a society DONOT cater to outsiders..and thats a limitation...so many shopkeepers, etc before opening their stores and restircting their footfalls....get assurance from Maintenance agency that outside Shopkeepers will not be allowed inside the complex either

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  • Originally Posted by aam aadmi
    You should keep this in mind:

    1. With trends of Walk in supermarkets..people like to go to a supermarket..choose and compare their own product in a nice comfortable space.....societies usually have such mini marts..

    2. When commercials are inside a society then usually the maintenance agency DOESNT ALLOW outside suppliers from such local shops...to promote their own stores....else shopkeepers wont open stores.

    3. Commercials INSIDE a society DONOT cater to outsiders..and thats a limitation...so many shopkeepers, etc before opening their stores and restircting their footfalls....get assurance from Maintenance agency that outside Shopkeepers will not be allowed inside the complex either



    True for first few years and then the things change due to

    1. Society shop is not properly stocked.
    2. Prices are exorbitantly higher, not in absolute term but in percentage term
    3. Society has no control over delivery given just outside the society gate.

    After few months, many resident push for change and outsiders are allowed in.

    By that time society shop's dream shattred and the shop is transferred to a retiree who runs the shop for TIMEPASS.

    Eventually, the shop end up in selling news paper, bread/anda and cold drinks ... for all those odd time requirements.
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  • target market is people who need something urgent and cannot drive out to supermarket.

    check the concept in Stylome --- Commercial shops are for everyone in that.

    you cannot stop a consumer to buy from the shop of his own choice. maintenance agency cannot stop this when you are operating from outside. in case of such hurdle, an sms can be sent to customer collect at the society door . there can be 1000 more innovative ways to circumvent these agency which. i dont think they have any right to dictate terms to residents as to where to buy and where to eat.

    its useless to open a shop in society where residents discover that goods are sold at a premium and then end up with low sales, non moving items.

    we are indian, we love bargain
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  • Originally Posted by ondabhai
    True for first few years and then the things change due to

    1. Society shop is not properly stocked.
    2. Prices are exorbitantly higher, not in absolute term but in percentage term
    3. Society has no control over delivery given just outside the society gate.

    After few months, many resident push for change and outsiders are allowed in.

    By that time society shop's dream shattred and the shop is transferred to a retiree who runs the shop for TIMEPASS.

    Eventually, the shop end up in selling news paper, bread/anda and cold drinks ... for all those odd time requirements.


    that too are market prices or rs 1 higher
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  • Originally Posted by ondabhai
    True for first few years and then the things change due to

    1. Society shop is not properly stocked.
    Check out the store in ATS or even in silver city
    Society store doesnt have to be a Big bazaar...but identify simple daily needs plus add ons..and you can generate Lakhs in a month...if you cater to even 1000 families in a society

    2. Prices are exorbitantly higher, not in absolute term but in percentage term.
    The total number of flats in a colony like Mayur Vihar is close to 3000
    and they have nearly 2-4 dozen general stores...all doing good business.

    A decently stocked (which will buy daily products at BULK..so as to cater to 1000 families)....catering to even 1000 families....will generate lakhs.

    3. Society has no control over delivery given just outside the society gate.
    convenience is the "USP"...having a decently stocked store where you can pick up things during your eveing walks or visit to gym, club...is much much better...than calling up a random store and asking him to send you products which you cannot compare, judge before buying


    After few months, many resident push for change and outsiders are allowed in.
    Since the stores are located inside the club area, etc...even for outsiders...to enter a society...walk inside...visitor parking, etc

    Open commercials like those in Gaur project in indirapuram are different....they are pure commercials

    By that time society shop's dream shattred and the shop is transferred to a retiree who runs the shop for TIMEPASS.

    Eventually, the shop end up in selling news paper, bread/anda and cold drinks ... for all those odd time requirements.


    The figures can numb you.....The catch is HIGH DENSITY.
    A society of 4000 flats...50% occupancy...2000 flats occupied.....out of that even if 1000 familes use the ONE AND ONLY Daily needs shop for their daily requirements of :
    Milk, Bread, Eggs, Vegetables, pre paids, maggi noodles, ice cream, chips, soda, etc

    The profits are Huge.

    Even if you make Rs.5-6 a day from each family by selling such "small" items......One can make Rs.5-6000 a day !!!!

    The biggest advantage in such HUGELY DENSE SOCITIES is..that come what may.....even with a mall next door......BARE MINIMUM Basic items will be taken from this store.....

    If i tell you how much these press waalas and car washers will make....you will be shocked !!

    These High density projects are Gold mines for small time businesses
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  • Times are changing - people are ready to pay for convenience.

    But I agree that these convenience stores are better off as own shop plus own business.

    They may not work so well if you buy the shop and try to rent it out to a shopkeeper - if it doesnt take off, you are left with a dead investment.

    Are there any such options available in NOIDA? How does one find a small (150-200sf) shop which is direct from builder?

    Any info would be most welcome - I am looking out for such an investment
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  • Such shops are best only if you want to run them....resale and lease is a BIg NO.

    Being inside the society...the maintenance agency, etc will further help by not allowing other vendors in society.

    High density is a Boon for business...and such societies will guarantee that.

    A shop which ONLY Supplies Milk, bread, eggs, vegetables, puja ke phool, in such HIGH Dense societies can make lakhs every month....this is advantage of High density.

    Even if a maid agency ties up with Maintenance agency, etc....he will make a lot

    I know socities in which paper suppliers tied up with the maintenance agency and became the SOLE supplier of papers in society. This is in a 500 flat society....imagine how much he will make in a 3000-4000 flat gated society.

    But these shops are ONLY for small businesses.....
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  • Originally Posted by aam aadmi

    The figures can numb you.....The catch is HIGH DENSITY.
    A society of 4000 flats...50% occupancy...2000 flats occupied.....out of that even if 1000 familes use the ONE AND ONLY Daily needs shop for their daily requirements of :
    Milk, Bread, Eggs, Vegetables, pre paids, maggi noodles, ice cream, chips, soda, etc

    The profits are Huge.

    Even if you make Rs.5-6 a day from each family by selling such "small" items......One can make Rs.5-6000 a day !!!!

    The biggest advantage in such HUGELY DENSE SOCITIES is..that come what may.....even with a mall next door......BARE MINIMUM Basic items will be taken from this store.....

    If i tell you how much these press waalas and car washers will make....you will be shocked !!

    These High density projects are Gold mines for small time businesses


    The deplorable conditions of the shops manned by a retiree with just few items speaks completely different story.

    People buys a colddrink from their society store when during their late night party you realise that cold drink finished... you don't mind paying 5rs extra .... but your regular stock of cold drinks you buy from another shop.

    While walking with your kid at the park, you buy 1 ice cream for him but the big bar of ice cream for your home you buy from outside.

    Zohaibbhai, it's not question of 5rs but we Indian love value for money.
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