Single-Owned Commercial Properties: The Go-To Option for Investors in India's Top Cities
Investors in India's commercial real estate market are increasingly preferring single-owned and managed properties over strata-owned ones, offering higher returns, operational efficiency, and greater attractiveness.
Commercial Real EstateSingle Owned PropertiesStrata PropertiesRental YieldsOperational EfficiencyIndiaReal Estate PuneJun 16, 2024
For instance, in Pune's South West region, single-owned properties showed an 18% higher rental yield compared to strata properties, while in Chennai's Southern Suburbs II, the difference was 32%, showed data from CRE Matrix.
Grade A commercial assets, managed through proactive asset management, attract top tenants. Strata buildings do not demonstrate the energy, upkeep, or connect with customers, which is necessary in a business landscape that sees constantly evolving consumer behaviour, according to Vinod Rohira, MD & CEO, commercial real estate, K Raheja Corp.
Single-owned properties offer operational efficiency, allowing for centralised management, quicker decision-making, and more effective property maintenance. As a result, occupiers are increasingly leaning towards single-owned properties due to the consistent and reliable building management they offer.
Single ownership ensures that the property is managed with a unified vision, translating to better maintenance and faster resolution of issues, enhancing tenant satisfaction and making single-owned properties more appealing to high-quality tenants.
Furthermore, single-owned properties tend to maintain and even increase in value more effectively than strata properties, attributed to the cohesive management and unified strategy for property improvements.
Investors are recognising the benefits of single-owned properties, including higher returns and better value retention. The operational efficiency and higher tenant satisfaction associated with single ownership make these properties a more attractive investment.
Occupiers prefer the reliability and consistency of single-owned properties, which translates to a better overall experience.
Frequently Asked Questions
What is the advantage of single-owned commercial properties?
Single-owned commercial properties offer higher returns, operational efficiency, and greater attractiveness.
How do strata properties differ from single-owned properties?
Strata properties have multiple owners and operators, leading to management challenges and delays in maintenance and decision-making processes.
What is the benefit of centralised management in single-owned properties?
Centralised management facilitates quicker decision-making and more effective property maintenance.
Why do occupiers prefer single-owned properties?
Occupiers prefer single-owned properties due to the consistent and reliable building management they offer.
What is the impact of single ownership on property value?
Single-owned properties tend to maintain and even increase in value more effectively than strata properties due to cohesive management and unified strategy for property improvements.
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