Single-Owned Commercial Realty: The New Favorite of Indian Investors
Investors in India's commercial real estate market are shifting towards single-owned properties due to higher returns, operational efficiency, and greater attractiveness.
Commercial RealtyReal Estate MarketSingle Owned PropertiesStrata Owned PropertiesOperational EfficiencyReal Estate NewsJun 16, 2024
Single-owned properties have demonstrated higher rental yields, with Pune's South West region showing an 18% higher yield compared to strata properties, while Chennai's Southern Suburbs II saw a difference of 32%, according to CRE Matrix data. Grade A commercial assets, managed through proactive asset management, attract top tenants who prioritize reliability in services, utilities, and overall experience.
Single ownership allows for centralized management, facilitating quicker decision-making and more effective property maintenance. Furthermore, single-owned buildings are relatively younger in age, with an average age difference of 20% compared to strata-owned buildings at a pan-India level.
In contrast, strata properties often face management challenges due to multiple owners, leading to delays in maintenance and decision-making processes. With institutional investment in real estate starting around 20 years ago, single-owned buildings have a better perceived quality, as developers build and maintain them to last longer for their perpetual revenue stream.
In conclusion, single-owned commercial properties have become the preferred choice for investors in India's commercial real estate market, offering higher returns, operational efficiency, and greater attractiveness.
Information
K Raheja Corp is a leading real estate developer with a strong presence in the Indian market. CRE Matrix is a data analytics firm that provides insights on the Indian commercial real estate market.
K Raheja Corp is a premier real estate developer in India, known for its high-quality commercial and residential projects. CRE Matrix is a data-driven platform that offers accurate and unbiased insights on the Indian commercial real estate market.
Frequently Asked Questions
What is the primary reason for investors preferring single-owned commercial properties?
Higher returns, operational efficiency, and greater attractiveness.
What is the age difference between single-owned and strata-owned buildings in India?
20% on average, with single-owned buildings being relatively younger.
What is the primary challenge faced by strata properties?
Management challenges due to multiple owners, leading to delays in maintenance and decision-making processes.
What is the Rental yield advantage of single-owned properties over strata-owned properties?
Up to 32% in certain regions.
What kind of tenants are attracted to single-owned Grade A commercial assets?
Top-tier occupiers who prioritize reliability in services, utilities, and overall experience.
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