What Is Pre Leased Or Pre rented Commercial Project or Property
Pre rented or pre-leased property is ( Industrial/ Commercial/ Institutional/ Residential) which is leased out to Tenant (MNC/ INC/Retail Brand/Factory) for a mutually agreed lease period & terms & conditions in lieu of rent on monthly basis.
Normally standard lease period in the commercial office space scenario is 9 years with 3-5 years of Lock-in period with a 12-15% escalation clause every three years.
Usually ready to move in a property where the tenant has already occupied the space are pre-rented properties but nowadays under-construction projects which have already signed verified lease with the potential tenants are also termed as pre-leased property.
Pre rented commercial property is the safest investment option in the real estate segment cause it involves minimum risk with verified property/ verified tenant with Fixed monthly rentals for a period of 9 years.
What are the types of Pre leased Property in Gurgaon
Why Gurgaon for buying pre rented commercial Property?
Gurgaon has become one of the most important investment cities in North India and the demand is increasing day by day. Gurgaon is the Hub for Fortune 500 companies and Developer like DLF has created Milestone building based on word class amenities and its close proximity to Delhi Airport and NH-8 makes it one of the most important Investment destination for coming time.
Gurgaon is famous for its High-end residential Apartments, Villas and Rapid Metro which Connect the inner Gurgaon with Metro connectivity. Gurgaon has one of the best Infrastructure to offer to MNC's & INC's Who are looking to buy or lease larger office space areas in Gurgaon.
Locations like Golf course road, MG Road, Golf course extension road is the favorite locations among investors to invest their money into. Gurgaon has never ever seen depreciation in Commercial Properties and over the years appreciation in Pre leased commercial property has been on the rise due to its Fixed income & Risk-free investment quality.
Types of Pre leased Property Explained further
Pre rented office space for sale in Gurgaon.
Buying pre-leased Office spaces in Commercial building or IT & ITES enabled building in Gurgaon has become the first choice of investors or people looking for a fixed source of Income along with Property Appreciation down the line. There are 3-4 reasons why People moving towards Office spaces.
- Investment Starts from 1 cr onwards only with lots of options to choose from.
- Higher ROI compared to Banks and retail brands.
- Lower Pricing gap between Vacant property and Pre-leased property.
Pre rented/ leased retail shops
This concept implies to all commercial office spaces/ Retail spaces/ business tower which are leased out to international tenants or Brands. Usually, ROI in commercial property is higher compared to residential pre-leased and commercial property tends to appreciate more in the long run than residential properties.
Pre-leased/rented Industrial Property
Industrial property concept Implies to Industrial shed, Industrial factory, and Industrial office space Building. They are good investment options and fetch high ROI required higher budget ticket size. The industrial plot if chosen carefully tends to fetch Good appreciation in the long run.
Pre rented/ leased warehouse
Investing in the pre-leased warehouse is another form of investment in the pre-leased property segment. But it requires a large ticket size with a taste for warehouse investment as warehouses are always away from the main city and usually, everyone would not like to spend money in the warehouse.
ROI in Pre Rented Property on the basis of Types
| Pre Leased Property Types and Expected Returns | |||
| Pre Leased Types | Expected ROI* | Minimum Investment* | Lease Period* |
| Office Space | 6% - 8% | 1,00,00,000 | 9 years |
| Retail Space | 5% -6.5% | 2,00,00,000 | 9 years |
| Bank | 4% - 5.5 % | 4,00,00,000 | 9 years |
| Independent Building | 7% - 9% | 5,00,00,000 | 9 years |
| Warehouse | 7% - 8% | 7,00,00,000 | 9 years |
Best locations for buying a pre leased commercial Property in Gurgaon
1 Golf course Road Gurgaon
Golf course road is one of the best locations for buying a pre-rented property in Gurgaon and this location is surrounded by high-end residential projects and world-class commercial complexes. The golf course road is well connected through rapid metro, Buses, etc. This location has offices of big corporate giants like Oracle, Facebook, American Express, and many more. For detailed info about Golf course road, pre-leased investment options click Here
2 Golf course extension road Gurgaon
Golf course extension road is the extension of golf course road to meet the Increased demand for office spaces and residential flats for the people across India. Golf course extension road has now overtaken all other locations of Gurgaon in terms of pre-rented investment and new office space leasing. for detailed info about pre-rented investment on the Golf course, extension road click Here
3 MG Road Gurgaon
MG road Gurgaon is well connected to Delhi by Metro and NH-8 and is famous for Malls is the best location for buying the pre-rented property. MG road Gurgaon has some very nice propositions to offer as pre-rented investment options to Clients and these buildings are developed by builders like Emaar and Unitech which has world-class facilities along with spectacular location adjacent to metro stations of MG road, Guru Dronacharya and Sikandarpur.
4 Sohna Road Gurgaon
Sohna Road Gurgaon is another location for buying pre-rented property, especially for those who have small Ticket sizes and looking for higher ROI. Sohna Road is National Highway and once it's through the pre-rented property will get a good appreciation over here. For more investment options on Sohna road Click Here
5 Udyog Vihar
Udyog Vihar is best suited for the investors having a large ticket size and is willing to buy Independent building. Udyog Vihar is divided into 7 Phases but mainly 5 phases are best sought after buying pre-rented commercial properties. For detailed information about pre-rented investment opportunities in Udyog Vihar Click Here
6 NH-8
Nh-8 Gurgaon has developed some extraordinary infrastructure specially SEZ, Cybercity, etc to meet the demand of MNC and INC tenants over the years. this is also a good location to buy pre-leased property for fixed return and property appreciation.
7 Others
Other than these above mentioned famous locations there are many other locations like, Info city, Pace city, Old Gurgaon, etc which also has independent industrial building to offers as pre-leased investment options.
5 Things you must know before buying pre rented property
1, Location of property -
Buying pre-leased isn't an easy task but a complicated one as it requires due diligence and lots of legal work before you invest your hard-earned money into a pre-leased commercial property. The 1st and most important aspect is choosing a grade A location along with New building is key to have appreciation in the pre-leased property.
2 Tenant profile -
Tenant Profile or company profile also plays a vital role in choosing a pre-leased commercial property investment. Having to Grade A tenant with a longer Lock-in period makes it certain that tenant will stay for a longer time which in return will help in getting back most of the money you invested through rentals along with Capital appreciation as per market trends.
3 Building age & Maintenance-
Another aspect you need to look into is that is the building you are buying a rented property in is new or old one if its a new building that would be good for you to hold on your investment for a long time. Tenants tend to move to new buildings as they meet the standards set by the global authority to make sure the safety of the company. Another thing you need to watch out for is the Maintenance Agency. if the building is in good hands then it will last for a long period and will keep on attracting tenants.
4 Duly Documents verifications-
After finalizing tenant, Building, and location the next important thing you need to do is go through lease agreement and property documents. it is very important to do this due diligence through a professional broker who is into pre-leased investment. After making proper verification you should proceed with a token amount.
5 Difference between rented and vacant -
Before you make a payment I would like you to keep an eye on the price of Vacant property and pre-rented property. If the gap is more than 60% I would suggest not buying that property. Because it will take 3-4 years of rentals to fill that gap and if the tenant vacates the office after expiring lock-in period your investment could turn in to a nightmare.
It is always better to hire the service of a professional broker who deals exclusively in pre-leased properties. Sometimes people go through unprofessional brokers to save some little money and sometimes saving few bucks now can turn into the biggest loss in the coming time.
5 Reason to buy Pre leased commercial property
1 Safe & secure investment
Pre-rented commercial property is safest and secure investment when it comes to investing in pre-leased commercial properties in Gurgaon. Being ready to move in property save your hard-earned money getting bluffed by builders by their fake promises and monthly rentals makes it possible to meet your day to day expenses.
2 Easily financeable assets
Pre-leased commercial properties are easily financeable in both ways means if you are looking to avail loan facility for buying pre-leased property, then any bank will give you loan up to 70% of the property value in no time. After buying a pre-leased property if in future you require instant money then you don't have to sell your property in distress. you can avail loan against your property.
3 Tax benefits
You can avail up to a 30% rebate on rentals in Income tax.
4 No GST on Pre-leased property
You don't need to pay GST on Ready to move in property. So buying pre-leased property is beneficial than under-construction property.
5 Most liquid able investment in real estate
Pre-rented commercial property is the most liquidate assets in the real estate market.
What We Prime Land Advisory Services LLP Do ?
We Prime Land Property Advisory Service Is into the Real estate sector for the last 8 years and has experience in Commercial Segments of Entire region of Gurgaon. Below is the jinx of the areas we are into.
Pre Rented Property -:
We are into Pre-leased property investment for the last 3 years and have sold out a big chunk to our investors in Gurgaon & Delhi. We are having multiple options in pre-leased investment in office & Retail Banks And independent building. for more info click here
Office Space For rent - Lease in Gurgaon:-
We have done Leasing for multiple brands s in Gurgaon eg. Eagle rider ,Mecaferri India,Technopac etc.So we are having leasing options in Commercial towers Sez and independent building in Delhi & Gurgaon for more info on office space for rent in Gurgaon. We also provide Shared office space or coworking office spaces in Gurgaon.
Ready to move commercial project resale -:
We have a large database od vacant commercial office space and retail space in all major locations of Gurgaon. these properties are available for sale to Individuals/ Companies/ Investors at very competitive prices.
Newly Launched Commercial projects-
We have a tie-up with companies like Elan, AIPL, M3M for their commercial projects in Gurgaon and can assure with the best price in their commercial projects( office spaces & Retail spaces) for more click here
FAQ About Pre Rented Property
Q1. What is the difference between LOI and Lease Agreement?
Ans. LOI ( Letter Of Intent) is usually a signed Paper between Lessor and lessee which shows that Lessee is agreed to take on the premises on lease for an agreed period of time. It is an initial form to finalize lease agreement where the outlined things in LOI are discussed in a detailed and legal way in the Lease agreement. LOI doesn't mean the Final of Deal.
In the case of LOI Tenant can cancel the deal many times but it gets very difficult after both parties register the lease in Court.
Q2. Should I verify the Property papers by a Lawer before I close the deal?
Ans. Lease Agreement & property papers like registry, BBA, Allotment letters, etc are the main parts that needed to verify while you initiate to buy a pre-rented property. If you are going through a professional broker he will check all the papers and will make you aware of the same yet we recommend that you should also get them to check with a lawyer as well for the peace of your mind.
Q3. I am getting high ROI but The lease is not registered. Should I buy that Pre leased property?
No, It is mandatory by law for both parties to register the lease agreement in the court before tenants move into premises. If both parties avoid registering the lease, it's illegal and We do not recommend buying such pre-rented property. If in future tenant vacates the property it would be very difficult to be able to make them continue through the legal way if both parties don't register the lease.
Q4. Can I avail Loan to buy Pre rented property?
Ans. Yes you can avail loan from banks to buy up to the 65% of Property value. For eligibility to avail the loan. you should check with your banker.
Q5. Is GST applicable on Pre rented property?
Ans. No, As per the govt norms GST does not apply to ready to move in Properties.
Q6. What are the Extra Charges Other than BSP in Pre leased property?
Ans. There ain't any other charges Like PLC, EDC &IDC, etc in Pre leased property. Only IFMS (Interest-free Maintenance Security) which is refundable will be paid and other than this Registry expenses will be there.
Q7. What are the registry Charges in Gurgaon?
Ans. Normally 5% ( in the case of Women) 6 % ( In Case of male & Female) and 7% ( In the case of a Company and Male)
