Pre leased property in Gurgaon
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The concept of Pre leased property for sale in gurgaon is fast catching the imagination of investors in India, especially those in the metros. Investors invest in a property with a view to renting it out, so as to earn a fixed income. For retail investors, it is largely confined to residential properties, given their low investment capacity.
It runs with the weather as high interest rates and exorbitant prices deter them from investing as they result in less annual yield.
But UHNIs ( ultra high net worth individuals) are transacting in commercial properties which are still in demand and offer high annual rental yield. There is a healthy demand from corporate from the IT and BFSI segments, which en masse account for 60-70% of the total demand. While residential properties give 3-5% as rental yield, commercial properties offer a high rental yield in the range of 6% to 9%.
Pre-Leased Commercial Properties command high yields
There is no doubt that real estate holds the greatest attraction for UHNIs. Most investments happen in properties, say a pocket of land, commercial properties like Pre Leased offices or industrial warehouses. UHNIs, say with a net worth ranging from Rs 25 crore to Rs 100 crore and even above, have been mandating wealth management firms or real estate advisors to pick grade ‘A’ pre-leased commercial properties.
These pre-leased commercial properties provide fixed income. Here, the aim is to lease out to quality tenants, earn lease income over a 3-5 year period and subsequently exit with a moderate to high capital appreciation.
There are mainly two kinds of commercial properties. The first is the lease-hold, mainly offered by government institutions like MIDC; they are leased to the buyer generally for a period of 99 years, extendable further. You actually buy rights to use the property and not the property per se. In a way, you are buying a property without really owning it. You have limited rights on what to do with the property.
The second is free-hold property – you become the exclusive owner of the property as well as the land on which it is constructed. It gives more right and responsibility to the owner. In India, a majority of the pre-leased commercial transactions happen on free-hold basis.
What decides the rental yield in these properties?
No doubt, the entry price is one of the biggest factors in determining the yield. Lower the price, higher the yield. Another key factor is the quality of tenants. If the tenant is a bank or an insurance firm, mainly PSUs, the property commands a rental yield of 6% to 8%. These tenants stay for a longer period and the property is less prone to hopping; hence, it commands a lower yield.
Commercial properties occupied by multinational companies ( MNCs) like foreign banks, investment banks, etc, or domestic firms like BPOs, IT/ITeS units as tenants generate high rental yields, say in the range of 8% to 12%.
So, the question arises how a buyer can ascertain if the tenant will stay for a longer period. If the tenant is incurring a substantial expenditure, say to the tune of Rs 2,000 to Rs 4,000 per sq ft on interiors, it can be fairly assumed that they are going to stay for a longer period.
How to calculate the rental yield
The calculation is simple. You are arriving at a price after including the basic price, stamp duty, car parking charges minus security deposit. The annual lease rent is divided by the final price to arrive at a yield. Generally, the lease term happens for a period of three years, which on renewal commands an escalation of 15% in rent. Hence, the rental yield increases progressively every three years.
For eg, a project ABC having a tenant XYZ has a leasable area of 10,000 sqft and is quoting at a rate of Rs 5,000 per sqft. The total cost after factoring in the car parking charges (4 parkings @ Rs 5 lakh each) plus stamp duty (approximately 5%) is Rs 5.46 crore. The security deposit-adjusted outgo is Rs 4.92 crore.
The lease rental is Rs 110 per sqft which entails an outflow of property tax of Rs 30 per sqft. Hence, the net rent comes to be Rs 48 lakh per annum and, hence, a rental yield of 9.76%.
If the rent escalates at 15% every three years, the yield increases to 11.78% in 4th to 6th year and 14.09% in the 7th to 9th year, considering other prices to remain constant. The above calculated yield does not incorporate the capital price appreciation, which can happen at any rate.
Ways to take exposure
If you have pockets full and belong to the high net worth individuals’ category, you can buy a pre-leased commercial property; so, typically, the transaction will range from say, Rs 5 crore to Rs 100 crore or even higher.
However, for investors falling in the smaller bracket, say Rs 1 crore, it is best to enter through private equity-run real estate rental funds which open from time to time. They promise to deliver a pre-tax return (including capital appreciation) of 20% to 25% during the course of the fund’s tenure.
The ideas look promising but one must check all the factors related to them, including the quality of tenants and their likely period of stay. One should also check the vicinity and all paths approaching the property. Lower the distance from major locations like highways, railway stations, bus stands etc, better rent it commands.
Thus save investor from getting bluffed from builder by delaying project or assuring of false leasing guarantee. Though things will improve as the real estate bill has passed in both houses but still ball is the builders court and will take time to get the things right.
To avoid all these problems now a day’s investors are moving towards pre rented properties to make sure that their hard earned money doesn’t go waste.
pre leased property for sale in gurgaon Clients has faith in Gurgaon market and when it comes to invest in pre leased property gurgaon is 1st choice among investors. Fortune 500 companies having their offices in Gurgaon all mnc;s and INC;s having their offices in Gurgaon. We have seen that the office space demand in Gurgaon is on rise for last 2 years though the market is sluggish.So if you are looking for pre leased investment Gurgaon is the best option.
Why PLP for pre leased property for sale in gurgaon?
Its very important to choose right real estate consultant to make property for sale right investment as it requires multilevel scrutiny starting from tenant profile builders background property document and more importantly ROI.
PLP Professionals has Wide experience in Commercial Sectors and has focused in pre leased investment and corporate Leasing which gives us edge on Normal Brokers of Market who has got involved in residential and commercial both. We have direct inventories in Delhi NCR which help investors to get fair deal as there is no middleman to get profit share.
We are having pre leased property on golf course road which is one of the best location considered for the investment in Delhi ncr. We are having pre rented property on MG Road which is full of retail malls and favourite destination of shopping for the people across Gurgaon.
pre rented property on golf course extension road are attracting investors now a days as its having new constructed building planned sector road and better connectivity.in pre leased we are also having good options for sale on NH-8 Gurgaon which is near to IGI Airport and Delhi.we are having very lucrative options on Sohna road which is best to consider if you are looking for high ROI. The people who are looking for independent building the we are having pre leased property in Udyog vihar.
Location For Pre Leased Investment in Delhi Ncr
1, Delhi – Capital of India does also have the best lucrative investment options which are very good to make any investment. Locations are following in Delhi.
#South Delhi – South delhi is considered the most prominent loaction where almost all govt offices. So all the influential personalities be it business man or politician or bureaucrats all lives there. So investing in south delhi is itself a status symbol.
# North Delhi – North Delhi is the location which has come up very quickly and has very good location like Rohini Dwarka etc. Investment in Pre leased property here is an advantage in terms of appreciation as connectivity has improved a lot.
# Nehru Place – The biggest IT market in Asia has definitely has achived one other title that is the costliest office space rental in delhi ncr. So investing in there is going to make it profitable business.
# Saket – Another best location for pre leased property investment in delhi is Saket.
Noida has attain no.1 rank in terms of infrastructure in Delhi NCR. So it has attracted lots of MNCS and INCS over there and connectivity to South delhi has added advantage to it.
The city of millionaire is the best location considered for the property investment be it commercial investment or residential investment. Now the infrastructure is being developed on the verge of world level connectivity of metro rapid metro and POD car to be soon is going to add value in it. Pre leased investments are done mostly in Gurgaon if we compare it to Delhi and Noida.
# Golf Course road
Golf Course road is the most posh area in Gurgaon which has the credit of having Most expensive Residential property in Delhi Ncr. The commercial property on golf course road has the occupancy over 80% and are in great demand. The rental has gone up YOY basis. So owning Pre leased property on golf course road is a good investment option.
#Golf Course Extension Road
extension of golf course road is called as Golf course extension road and is home to many luxury residential properties and commercial projects. for last 1-2 years golf course extension road has seen some occupancy level and very ggod tenant Like PEPSI and NTT DATA has already moved to there.This location is the future of Gurgaon and so is the future of investment. So having pre leased property here can be a very good investment for next 3-4 years.
# NH-8 Gurgaon
Property along side NH-8 doesnt need any introduction for the connectivity. Thats why IT giant GOOGLE has its Main Office on NH-8 and has occupied very large space over there. this is also a great location for having Prerented property.
# Sohna Road
Sohna road is the best options for those who are looking for higher roi and has less budget size. TCS and mckinesy has already having their offices in Vatika business park. so to own pre leased property here is a good option in small budget size.
# Udyog VIhar Ph-1-5
Udyog vihar is the home for such tenants who wants to own full building and dont want to get disturbed at all. so here comes Udyog vihar. Its best option for those who has bigger ticket size and looking for independent building.
# Pace City | -||
This is again best option for those who wants to own standalone building.
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Pre Leased Property:9873498205
Gurgaon, Haryana 122001