[GAGA REALTY] [JOINT VENTURE] [GAGA HOMES]
Mumbai: Investors in India’s commercial real estate market are increasingly preferring single-owned and managed properties over strata-owned ones as they offer higher returns, operational efficiency, and greater attractiveness, according to experts.The rental yields for commercial assets across key property markets have been a major indicator that clearly shows that single-owned commercial properties are outperforming their strata counterparts that have multiple owners and operators.These assets in pockets of key regions such as Mumbai, Bengaluru, Pune, Gurugram and Chennai have demonstrated rental yield advantages of up to 32%. For example, in Pune’s South West region, single-owned properties showed an 18% higher rental yield compared with 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,” said Vinod Rohira, MD & CEO, commercial real estate, K Raheja Corp. “This distinction ensures that single-owned assets attract top-tier occupiers, who prioritise reliability in services, utilities and overall experience, safeguarding their business operations and talent retention efforts.”According to him, tenants are willing to pay a premium for quality office assets, an achievement realised only by single-owned asset managers.One of the critical advantages of single-owned properties is operational efficiency. Single ownership allows for centralised management, which facilitates quicker decision-making and more effective property maintenance.”Single-owned buildings are relatively younger in age as institutional investment in real estate started around 20 years ago. At a pan-India level, single-owned buildings are 20% younger than strata-owned buildings, and this difference gets even bigger when we see those micro-markets where the delta in rentals is even higher,” said Abhishek Kiran Gupta, CEO and cofounder, CRE Matrix.According to him, the overall quality of a single-owned building is better perceived than a strata-owned building, as the developer has built it and maintains it to last longer for his own perpetual revenue stream.In contrast, strata properties often face management challenges due to multiple owners, leading to delays in maintenance and decision-making processes.
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