Single-Owned Commercial Properties Trump Strata Properties in India's Key Cities
Single-owned commercial properties are outperforming strata properties in key Indian cities, offering higher returns, operational efficiency, and greater attractiveness to tenants and investors alike.
Commercial Real EstateSingle Owned PropertiesStrata PropertiesIndiaProperty MarketReal 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%, as per data from CRE Matrix. Grade A commercial assets, managed through proactive asset management, attract top tenants, who prioritise reliability in services, utilities, and overall experience.
Single ownership allows for centralised management, facilitating quicker decision-making and more effective property maintenance. This streamlined approach ensures that properties are well-maintained and can quickly adapt to market demands or tenant needs. In contrast, strata properties often face management challenges due to multiple owners, leading to delays in maintenance and decision-making processes.
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. This reliability enhances tenant satisfaction, making single-owned properties more appealing to high-quality tenants and ensuring higher occupancy rates.
Single-owned properties tend to maintain and even increase in value more effectively than strata properties. This value retention is attributed to the cohesive management and unified strategy for property improvements. A single-owner can implement upgrades and market the property with a clear and consistent strategy, directly impacting the property's market value positively.
Information
K Raheja Corp is a leading real estate developer in India, known for its high-quality commercial and residential properties.
CRE Matrix is a reputed real estate data analytics firm that provides insights and trends in the Indian commercial property market.
Frequently Asked Questions
What is the rental yield advantage of single-owned properties over strata properties in India?
Up to 32% in key regions such as Mumbai, Bengaluru, Pune, Gurgaon, and Chennai.
Why do single-owned properties attract top tenants?
They offer reliability in services, utilities, and overall experience, which is essential for businesses.
What is the benefit of centralised management in single-owned properties?
Quicker decision-making and more effective property maintenance.
Why do occupiers prefer single-owned properties?
They offer consistent and reliable building management, leading to better maintenance and faster resolution of issues.
What is the impact of single ownership on property value?
It leads to better value retention and appreciation due to cohesive management and unified strategy for property improvements.
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