Pre-leased property for sale in gurgaon: 9873498205-Pre rented Property in Gurgaon
Rented bank for sale in Gurgaon
Pre Rented Property for sale in Gurgaon
What is Pre-leased or Pre rented Commercial Property
Pre Leased property or rented Property is a commercial, industrial or residential property that is already rented to a tenant and fetching monthly rental to the owner of the property. Pre-leased property is considered the best investment or the safest option in the real estate sector. Cause ...
- Building or space would be ready to move so no fear of delayed possession and poor construction quality.
- The profile of the tenant is known and financial background and lease terms can be verified. Thus no chances of getting cheated.
- Since the property is ready to move hence you don’t have to pay GST.
- Benefits under Income Tax
- Verification of building & Tenant is possible since you are buying a property that is ready to move and the tenant which has come or about to come can be verified any time.
- pre Leased Property is easily liquidatable real estate investment which comes handy during the bad phase of life.
- Rentals earned from the pre-rented property is exempted from tax( up to 30%).
- Buying pre-rented property doesn't involve risk like investing in the stock market. cause how bad is the market your property would never become zero.
WHY INVEST IN PRE- LEASED PROPERTIES
1. 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 readily available 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 or pre-rented 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 Pre Leased or pre-rented 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 the 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 a freehold property - you become the exclusive owner of the property as well as the land on which it is constructed. It gives more rights and responsibilities to the owner. In India, a majority of the pre-leased commercial transactions happen on a freehold basis.
2. What decides the rental yield in these Pre Leased &pre rented properties?
No doubt, In pre-leased property the entry price is one of the biggest factors in determining the yield. Lower the price, the 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.
Essentials to be seen while investing in pre-leased properties
The type & age of the building is crucial while making an investment decision in the pre-leased property. Newer the building with grade “A” office spaces will fetch better returns. One should also check the load-bearing capacity of the floors, column to column distance (higher is better), floor to ceiling height (preferably 12’+ in the case of offices). Energy-efficient LEED certified/ Green buildings would be in demand in the coming future. The building should also have adequate power back and good quality lifts adequate in number.
Tenant profile is one of the major aspects to be seen while investing in pre-leased commercial properties. The tenant should have sustainable income source/ growing business/ future growth prospects.
A longer lease term is better depending on the market situation. If drastic upward revival in rentals is seen in the near future then shorter leases are also preferable.
Lock-in period is the minimum term that tenants should serve or pay for. Higher lock-in gives better security to the pre-leased investment.
5.Time Entry-Exit Deposit, Rent, and rent escalation:
The deposit should cover an average of at least 3 months of electricity bills and maintenance charges. In the case of longer lock-in, the deposit should be higher to ensure the tenant would fulfill his obligations. Annual rental escalation is preferred over escalation after 3 to 4 years. but mostly its seen that companies prefer to go for escalation after every 3 years.
6.Property Tax and Maintenance charges:
One should check the maintenance charges, property tax, and other tax obligations, any pending matters/ penalties before investing. it is always suggested to go for buildings having all building full AC. it will increase the maintenance cost compared to non AC building but if you are expecting A grade tenant to come in your space. it's better to have AC Space.
7.Good Facilities Management:
Good facilities management agency for the premises and the building plays a pivotal role in the upkeep of the premises and can fetch better capital value for the property in the longer run.
8. Building Location and Construction Quality
Buying Pre-leased property is a good decision but requires due diligence so that decision doesn't turn into a nightmare. It's old saying that if you have got a good location then if it's not churning out the good profit in current then don't worry it will churn out you a great profit in the coming time.
This statement holds as much like the truth as in old-time so the location of the building is something which should be kept on top priority. because the tenant will come and go but if you have got a good location you won't have to worry about getting it leased again.
9. High rent vs low rent
if Any tenant is paying rental above the market standard that doesn't mean that he will leave in some time provided that furnishing of that tenant could be of great quality but if the furnishing is not of great quality then lookout for some other options.
This is WHY Pre-rented Property is considered the best Secured Investment option in Real estate
|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|
Types Of Pre-Leased Property
Pre-leased office space is the investment whereas a commercial office space is rented out to an MNC or any INC at an agreed period of time. Usually, it is for 9 years standard lease where 3 years will be lock-in and 15% escalation after every three years. Benefits of Investing in pre-leased office spaces are many eg
# Investment starts from 50 lacs onwards so a person who is not having a bigger ticket size and want to invest in pre-leased property can go for office space.
# The Price gap between Vacant space and pre-leased space is always justified it is usually 3000-5000 Rs PSF depending upon Tenant profile, Building location, etc.
# High ROI is being fetched by office space compared to Retail and bank spaces. If you are looking for Higher ROI then Pre-leased Office space is the best choice.
ROI trends in Office Spaces in Gurgaon Location Wise
|Location||Min. Investment size||ROI|
|Golf Course Road||2 cr||6% - 7.5%|
|Golf Course Extension road Road||1 cr||6.5% -7.5%|
|Sohna Road||80 lacs||7%-8.25%|
|MG Road||2 Cr||6.6%-7.25%|
Where a retail shop is rented out to a retail brand or a bank is known as rented retail space. usually, a lease is for 9 years and can be less or long according to the mutual decision of tenant and property owner. benefits of Investing in Pre-leased retail space is following
# Higher appreciation is tend to get from retail space while comparing to office space and thus attract bigger ticket size investors in this.
# Retail shops fetch you much more rent than office space when compared to per square feet. sometimes it is 3-4 times of office space.
ROI in Pre-leased Retail spaces in Gurgaon
|Location||Min. Investment size||ROI|
|Golf Course Road||4-5 cr||4 % -5%|
|Golf Course Extension road Road||4-5 cr||5%-6 %|
|Sohna Road||4-5 cr||5%-6 %|
|MG Road||4-5 cr||5%-6 %|
|NH-8||4-5 cr||5%-6 %|
|Others||4-5 cr||5%-6 %|
Pre-leased independent building investment is for bigger ticket size investors usually it starts from 7-8 cores and goes up to several hundred crores.
ROI in Pre-leased Independent Building in Gurgaon
|Location||Min. Investment size||ROI|
|Udyog Vihar Ph 1 -5||9 cr||7-8%|
|Sector 44||20 cr||8%|
|Pace city 1&2||10 cr||7.50%|
4 Pre Leased Running School - play School leased out to good international and domestic brands are available for sale as pre-leased options in Gurgaon.
5 Pre-Leased SCO ( Shop cum Office)- Pre-leased SCO'S are Hudda Allotted plots in the center of a Colony is an attractive option for investment.
6 Pre Leased Huda Booth - Pre-leased booth is another best option for investment in Gurgaon.
7 Pre Leased Car Showrooms - Pre-leased car showrooms are hard to find but a very good option of investment.
8, Pre Leased Warehouse - pre-rented warehouse starts from 7 cr onwards and goes up to 100 cr. ROI in the Rented warehouse range between 7-9%.
Location For Investing in DELHI NCR
#South Delhi -
South Delhi is considered the most prominent location where almost all govt offices. So all the influential personalities are it a businessman or politician or bureaucrats all lives there. So investing in south Delhi is itself a status symbol.
# North Delhi -
North Delhi is the location that has come up very quickly and has a 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. a 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 achieved one other title that is the costliest office space rental in Delhi NCR. So investing in there is going to make it a profitable business.
Another best location for Pre leased property investment in Delhi is Saket.
# West Delhi - West Delhi is another best location for investing in Pre-leased properties and mostly contains retail spaces rented out to Banks and other retail brands. investing west Delhi is also another location you can opt-in Delhi.
2. NOIDA -
Noida has attained 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 the millionaire is the best location considered for the property investment be it the 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 to 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 poshest area in Gurgaon which has the credit of having the Most expensive Residential property in Delhi NCR. The commercial property on the golf course road has occupancy over 80% and is 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 a Golf course extension road and is home to many luxury residential properties and commercial projects. for the last 1-2 years, golf course extension road has seen some occupancy level and very good tenant Like PEPSI, and NTT DATA has already moved 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 the next 3-4 years.
# NH-8 Gurgaon
Property alongside NH-8 doesn't need any introduction for the connectivity. That's 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 Pre rented property.
# Sohna Road
Sohna road is the best option for those who are looking for higher ROI and has less budget size. TCS and Mckinsey have already had 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 want to own full building and don't want to get disturbed at all. so here comes Udyog Vihar. Its the best option for those who have bigger ticket sizes and looking for an independent building.
# Pace City | -||
This is again the best option for those who want to own standalone building.
Pre-rented Property is a good option of Alternate Income with Capital (Money) Appreciation for a Long Term.
> Pre-leased commercial property is a very good source of regular income for a long time along with Property appreciation. which at one hand meet your current Expenditure and in the long term makes you profitable with property appreciation.
> While we Invest in Stock Market & Mutual Funds the risk of losing money is very high and gaining is also very high. On the other hand, Pre rented property investment is not volatile and keeps the investment safe and there are high chances of appreciation in a longer period of time.
>Pre rented commercial property tends to give better returns in a longer period so it always advised to hold on the pre-leased property for 6-7 years and you will be amazed to know about the return your property will give you. there have been cases where it has given up to 500% return in 6-7 years of the timeline.
Which is a better option to buy Furnishing done by owner or Furnishing done by Tenant itself
There are two types of options you will find when you search out for pre-leased properties.
- Where furnishing is done by the tenant
- Where furnishing is done by Owner
What is the difference between both?
There would be a difference in rental per square feet among both whereas in furnished by the owner rentals would be 10-15 rs per square feet higher than the one furnished by Tenant. it will ultimately affect the ROI and rate per square feet of that property.
Which is better to buy among both of them?
It is usually considered that if furnishing is done by tenant itself tend to stay for a longer period of time which is not entirely right as it is not entirely right to say that companies tend to leave places where furnishing is done by the owner.
It all depends on the
- Location of building
- The construction quality of that building
- Profile of Company (Tenant)
- Rent per sqft