Why Single-Owned Commercial Properties Are Outperforming Strata Properties in Key India Cities
Single-owned commercial assets are demonstrating rental yield advantages of up to 32% compared to strata properties in key regions such as Mumbai, Bengaluru, Pune, Gurgaon, and Chennai.
Commercial Real EstateSingle Owned PropertiesStrata PropertiesRental YieldsOperational EfficiencyTenant SatisfactionProperty ManagementInvestment OpportunitiesReal Estate MumbaiJun 16, 2024
According to experts, single-owned commercial properties have demonstrated rental yield advantages of up to 32% compared to strata properties in key regions such as Mumbai, Bengaluru, Pune, Gurgaon, and Chennai. 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%.
Grade A commercial assets, managed through proactive asset management, attract top tenants. Single ownership allows for centralised management, which facilitates 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.
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, which translates 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.
Vinod Rohira, MD & CEO of K Raheja Corp, notes that single-owned assets attract top-tier occupiers who prioritise reliability in services, utilities, and overall experience. Abhishek Kiran Gupta, CEO & Co-founder of CRE Matrix, adds that single-owned buildings are relatively younger in age and have a better overall quality compared to strata-owned buildings.
In conclusion, single-owned commercial properties offer a more attractive investment opportunity due to their higher returns, operational efficiency, and better value retention. Occupiers, on the other hand, 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 over strata properties?
Single-owned commercial properties offer higher returns, operational efficiency, and better value retention compared to strata properties.
What is the rental yield advantage of single-owned properties in key India cities?
Single-owned properties have demonstrated rental yield advantages of up to 32% compared to strata properties in key regions such as Mumbai, Bengaluru, Pune, Gurgaon, and Chennai.
Why do occupiers prefer single-owned properties?
Occupiers prefer single-owned properties due to the consistent and reliable building management they offer, which enhances tenant satisfaction and ensures higher occupancy rates.
What is the impact of single ownership on property maintenance?
Single ownership allows for centralised management, which facilitates quicker decision-making and more effective property maintenance, ensuring that properties are well-maintained and can quickly adapt to market demands or tenant needs.
What is the benefit of single-owned properties for investors?
Single-owned properties offer a more attractive investment opportunity due to their higher returns, operational efficiency, and better value retention.
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