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Investment In Pre-Leased Commercial Properties

Pre-leased Commercial Properties has become one of the most the attractive investment opportunities in India over the last 5 -7 years.
Today, UHNIs, private equity funds, sovereign wealth funds, Business People have been actively involved in buying and selling pre-leased properties to earn surplus capital on account of ever increasing Real Estate Capital Values. Especially in an era post the demonetisation drive, where the returns on fixed income products like Government Securities (G-secs), bonds, bank deposits are witnessing a declining trend; Pre-leased Property is an attractive investment opportunity that can provide stabilised returns with Capital Appreciation. Investment into Pre-Leased Commercial Properties are low to medium risk investments with debt-like returns during the investment holding period with an equity upside on exit from these investments.

As these investments are income generating from day one, the owner enjoys debt-like returns during the asset holding period. These returns range between 6% to 10% p.a. to begin with and gradually improve on account of rent escalations, which is typically 5% every year or 15% after 3 years. These are stabilised returns due to lease tenures typically in the range of 3-15 years. With investment in completed Commercial Assets, there are no risks associated with Land, Project Approvals and Constructions delays. Regulatory initiatives including GST, RERA, REITs as well as demonetisation have resulted into higher transparency that would further boost the commercial space demand and therefore makes a compelling investment choice. We have a specialised team for this service who dedicatedly scout High Return on Investment yielding properties and thereby making the choice for the Investor much simpler.

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