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A complete guide to commercial investments in Gurgaon

Despite suffering a setback in the past two years owing to the COVID-19 outbreak, the rate of urban development in India has continued to endure. Hoping to cater to the ever-migrating populace from the rural areas and the increasing share of millennials, multinational companies and commercial ventures are recently setting up their shops in and around major metropolitan cities. Since 2017, the commercial office market has been on an upward trend in India[1], leading to a varied roster of choices for potential investors. Ranging from newly-introduced co-working office spaces to pre-leased commercial properties, the plethora of opportunities help in attracting more and more investors to the benefit of the commercial real estate sector in the country.

While Bangalore and Mumbai lead the charts in the absorption of recent commercial units, the burgeoning city of Gurgaon is not much far behind, as per ANAROCK data. Making a proper name for itself in Delhi-NCR, Gurgaon has become one of the prime investment destinations, for both residential and commercial properties. Owing to its close proximity to the national capital and the abundance of prominent builders, the “Millennium City” is growing by leaps and bounds in terms of its real estate potential. Because of the projected growth, a good deal of Non-Resident Indians (NRIs) have recently expressed their interests in acquiring various retail spaces and commercial properties in Gurgaon. Besides, the city’s rental growth rate holds quite some promise, more in the commercial segment than the residential sector.

Why is Gurgaon suitable for investing in commercial properties?

Gurgaon, officially known as Gurugram, has a strong concentration of shopping malls, statistically more than other nearby locations like Central Delhi, Noida and South Delhi. Relatively young in nature, the city has developed a corporate character over the years which in turn has led to the growth of ground floor retail spaces in most office buildings. Because of the construction of better roads, public infrastructure and residential townships, the city has expanded its area. To provide for the rising demand, various departmental stores and retail outlets have been popping up in places in Gurgaon.

1. IT Hotspot: Since Gurgaon is one of the major IT hubs of the country, it’s quite popular among project developers and commercial property owners. Because of the city’s flourishing nature, top-of-the-line real estate players are focussing more and more in erecting commercial properties to house the growing number of corporations and organisations. A plenitude of skilled and unskilled labour from neighbouring cities like Delhi, Noida, Faridabad and Ghaziabad also makes Gurgaon a place of interest.

2. Excellent Infrastructure: Due to the existence of areas such as Sohna Road, Dwarka Expressway and Golf Course Extension, Gurgaon continues to grow its appeal as a paradise for commercial properties. Promising a sizable return on investment (ROI), the aforementioned areas have witnessed an investment rise in properties like five-star hotels, deluxe restaurants, educational institutions and well-known hospitals. The continuous rise in the average standard of living of the inhabitants has also led to an increase in demand for first-rate infrastructure.

3. Seamless Connectivity: Apart from the financial aspects of Gurgaon, the city has a practical advantage to it too. It is connected seamlessly with the national capital through the eight-lane National Highway-48 (NH-48) and the Delhi Metro, making it easier for people to commute for work or leisure purposes. Additionally, the private shutters and bus routes provide transport to and from the Indira Gandhi International Airport in South-West Delhi.

4. Multitudinous Consumers: Owing to the massive influx of working individuals, the customer base in the city of Gurgaon is of an increasing nature. A large section of the city’s population consists of young nuclear families, millennials and working women professionals, who play a fundamental role in attracting global retail giants. The vast middle class, residing in and around the city, is also key to the accelerated growth of Gurgaon’s retail industry.

5. Financial Advantages: After acquiring commercial properties and retail spaces in Gurgaon, the investors often choose to rent them out to improve their cash flow. The added income can then be used by the investors to pay back loans, further business plans or improve their lifestyle by spending on leisure activities. On the other hand, real estate returns are comparatively better than alternative options like stocks or bonds. The investments also increase in value over time.

Why are pre-leased commercial properties popular in Gurgaon?

Addressing the rising demand for Grade A quality office spaces, several developers have risen to the challenge of coming up with a number of pre-leased commercial and retail properties. But what are pre-leased commercial properties? To put it simply, the units which are already leased out at the time of the sale and continue to earn steady income for the investors are called pre-leased commercial properties. Of late, High-Net-Worth Individuals (HNIs) have added to the trend of leasing such properties as their investments offer fixed income from first-rate commercial tenants and a substantial capital appreciation during the time of market exit.

1. Assured Returns: By investing in pre-leased commercial properties, the buyer reaps the benefit of the previous owner’s hard work. With a tenant already in place, the space has a zero waiting period as it generates income from the very first day itself. Moreover, the new owner of the property saves advertising costs by not having to search for the right tenant for his retail space.

2. Capital Appreciation: Apart from rental returns, the investor is also assured of a significant capital appreciation over a period of time. Since Gurgaon is an ever-expanding city with a promising future, the value of pre-leased commercial properties will continue to rise as it is directly proportional to the development of the region. In the long run, the pre-leased properties yield quite a premium price.

3. Regular Income: A pre-leased commercial space generates a steady, monthly rent for the new investor, making it quite sought-after in the modern real estate market. The lack of hassle for an income plays a key factor in their favourability.

4. High Liquidity: Usually, real estate investments suffer from their illiquidity. But since pre-rented spaces offer regular rent, they are easier to sell compared to other properties of similar kind.

5. Low Risk: Regarded as a safe investment, the pre-leased commercial properties enjoy a lack of risk associated with construction and registration phases. Furthermore, the rental agreement provides the investor a foresight to plan for the future in the best way possible. The probability of tenants vacating the pre-rented retail shops prematurely is also fairly low.

Trehan IRIS: A home to leading commercial units in Gurgaon

Due to the aforementioned reasons, Gurgaon is clearly a suitable location for the proliferation of commercial real estate. Focussed in areas of strategic importance like Dwarka Expressway, Golf Course Extension Road and Sohna Road, multiple developers have come up with profitable commercial buildings. But none comes close to topping the expertise and legacy of Trehan IRIS and the quality and uniqueness of their projects.

1. Trehan IRIS Milestone: A ready-to-move, RERA-approved commercial development, Trehan IRIS Milestone offers private floors of customizable workspaces either for sale or for rent. Located in Manesar, the establishment is in a prominent business locality along the well-connected National Highway-8 (NH-8). Spread over an area of 1.49 acres, the Trehan IRIS Milestone is the ideal location for companies looking to take their business to the next level. Built with the latest technology, the well-designed offices are replete with up-to-date features to enhance productivity and management. As for the amenities, the project has multi-level basement parking with connecting elevators, centralised air-conditioning system, 24/7 security and intelligent fire-protection systems and an uninterrupted power backup.

2. Trehan IRIS 312: Making the most of cutting-edge technology, Trehan IRIS 312 is the ultimate IT destination with state-of-the-art office spaces. Located in Udyog Vihar, the commercial property enjoys the advantage of being surrounded by premium residential zones like DLF Phase II, DLF Phase III and DLF Cyber City. Trehan IRIS 312 is considered as a major investment destination because of its close proximity to National Highway-48 (NH-48), which simplifies commute for most working professionals. With natural daylight adorning the office spaces through well-positioned glass walls, the working experience turns into quite a pleasant affair. The availability of uninterrupted power back, trusted safety systems and multi-level basement parking makes the 14,271 square feet-wide Trehan IRIS 312 a prime spot for financiers to invest in.

3. Trehan IRIS Broadway: Last but not the least, Trehan Iris Broadway brings to life the vision of a leading construction company with amenities beyond compare. On the back of modern techniques and innovative designs, the mall has made a name for itself by servicing over 3.5 lakh people in the immediate catchment area. Alongside convenient parking areas and desirable business centres, the Trehan Iris Broadway also has a dedicated space for fetes or festivals. Leading by example in five different anchors, namely cinema, digital, fashion, entertainment and hospitality, the mall is the perfect place for commercial and retail investment. Situated in Sector 85, the Trehan Iris Broadway is an epitome of the spirit of younger masses in the “Millennium City” as fine-dine restaurants, entertainment plazas and retail markets are all present in the same location.

4. Trehan IRIS Techpark: Designed by the award-winning Sikka Associates Architects, Trehan IRIS Techpark is a multi-functional complex with an upscale architecture. Built over an area of five acres, the commercial property consists of three exquisitely-designed towers, offering fully-customized office spaces. Aside from the two floors leased out to McDonalds, the rest of the gated project is available to national and international clients within diverse market sectors. Situated in the prime location of Sohna Road, Trehan IRIS Techpark enjoys superior connectivity to five-star hotels, renowned hospitals, shopping malls, and residential areas. Furthermore, the commercial complex is just 10 minutes away from HUDA City Centre and 20 minutes away from the Indira Gandhi International Airport. As for the amenities, Trehan IRIS Techpark has a public address communication system, undisturbed power backup, grand drop-offs and common lobbies to name a few. Owning a pre-leased commercial property in such an extensive project is a no-brainer because of its popularity and amenities.

All in all, Gurgaon is the ideal place for investment in commercial properties as it not only offers durable infrastructure courtesy of top-of-the-line real estate developers, but also provides an ever-increasing consumer base. On top of that, the availability of pre-leased commercial properties makes it a more lucrative venture for the investors.

References:
“Indian commercial real estate beckons NRIs”, Mid-Day:
https://www.mid-day.com/news/india-news/article/Indian-commercial-real-estate-beckons-NRIs-21141161