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.
Tags:
Related News Articles
Tamannaah Bhatia's Expensive Real Estate Deals in Mumbai
Bollywood actor Tamannaah Bhatia has made headlines with her recent real estate deals in Mumbai. She has leased a commercial property in Juhu and mortgaged three residential units in Andheri West.
Ashiana Housing and Arihant Foundations to Launch Residential Project in Chennai with Rs 225 Crore Investment
Real estate companies Ashiana Housing and Arihant Foundations have collaborated to develop a new residential project in Chennai, with an estimated investment of Rs 225 crore.
Bollywood's Big Real Estate Players: A Look at the Stars' Lucrative Investments
Ajay Devgn, Kajol, Amitabh Bachchan, and other Bollywood stars are making big bucks from their real estate investments in Mumbai. Here's a closer look at their lucrative deals.
Panchshil Realty Subsidiary Sells Land in Pune
Panchshil Realty, a prominent player in the Pune real estate market, has recently announced the sale of a significant land parcel through one of its subsidiaries. Known for its commitment to quality and innovation, Panchshil continues to make strategic mo
Pune Municipal Corporation Employs Women for Property Tax Collection
Pune, 14th March 2025: In a groundbreaking move, the Pune Municipal Corporation (PMC) has assigned women employees to the task of collecting pending property taxes, marking a significant step towards gender equality in municipal governance.
Gautam Adani's Strategic Move: Adani Group Subsidiary Acquires 48,000 Sq Ft Property in Malabar Hill
In a significant move, a subsidiary of the Adani Group has purchased a sprawling 48,000 square foot property in Malabar Hill, one of Mumbai's most exclusive and expensive neighborhoods. This acquisition underscores the group's growing presence in luxury real estate and strategic investments.