Mr. Vikas Rikhye, 98110 81078

In the present real estate scenario in Gurgaon, as stated in my previous article, Commercial office space, has witnessed a stagnant stage of demand, for the reasons as mentioned in aforementioned article.

However, with the connectivity and efficient performance of Metro, the commercial locations in the vicinity of Metro stations in Gurgaon, are showing continued demand. There is a remarkable upward swing in commercial location of HUDA Sector 29 and Sector 44, which are in a very close proximity to HUDA City centre.

In my opinion, HUDA Sector 44 stands out for its location and layout. It has already become a hub of the Corporate world and MNCs. Besides its presence next to Metro Terminal, it offers the connectivity to various residential complexes in its vicinity. Having a close proximity to Hotels match with corporate needs. A close access to NH-8, leading to IGI Airport, adds on to its location advantage.

Moreover, being an institutional sector, all the corporate needs have been taken into account and it is one of the prime HUDA Sectors that offers various options of commercial office space on lease, ranging 5000-50000 sq ft as well as Independent buildings. With its defined features it is best suited to large business houses as well as to Institutional clients.

Keeping its increasing popularly and consistent demand our network associates will respond to all the queries related to Office Space in Gurgaon near Metro Station thru corporateleasing@hotmail.com

Vikas Rikhye, Real Estate Blogger

The commercial property in Gurgaon, under present market conditions, is expected, if not on downward trend, then surely, it has to undergo slow and a static phase, for next few years. The investors in rat race to earn quick money, got swayed away by enthusiastic builders and promoters who had been responsible of developing commercial real estate in most unplanned manner.

In absence of “Real estate Regulatory Authority”, neither any survey has been conducted to determine the demand and supply ratio, nor the planned methods have been adopted to ensure the safety of the investor. The builder and promoters continue to develop commercial property with their ultra motives ignoring the responsibility of social justice, as a result several commercial properties in Gurgaon are giving a deserted look.

The commercial property can broadly be categorized as following:

• Commercial office space
• IT Business Parks
• Shopping Malls
• Shopping complexes open court yard style

About a decade and a half back there had been a great demand commercial office space in Gurgaon and Noida, as Delhi was unable to meet with rapid growing demand of MNCs, who had then just started moving to India for their operations for Indian as well as for the other Asian markets, as some of the MNCs opted Gurgaon for their regional headquarters, which had the advantage of close proximity to International Airport. With fresh demand the requirements were huge as several MNCs required large floor plates as a result, the companies like DLF & Unitech swung into action, as these professional companies had the ability and resources to deliver the results in a time bound schedule. Over a period of time the companies started settling and the demand gained stability. But having seen the success rate of DLF and Unitech, suddenly, there was a awakening call for new player in the field, who also attracted the investor and had their share of prosperity as well. While the demand was settling down, the enthusiasm of the investor and builder continued, resulting into several lacs of commercial office space lying vacant on prime locations like Golf course Road, Sohana Road and other prominent areas of Gurgaon.

IT industry offered new era of opportunities starting with Call centers BPOs, KPOs, setting a new avenues of employment opportunities. At that time Gurgaon was a good destination for IT MNCs because of cheaper office space and manpower. Suddenly Gurgaon witnessed the mushrooming of call centers. It is understood, foreseeing the massive demand the builder approached the authorities to approve more of FSI/FAR (more of coverage) for IT Building and after getting such approval again swung into action resulting into worst fate compared to commercial property as over a million of IT Space is lying vacant on NH-8, Udhyog Vihar, Sohna Road etc.

In as early as 2002-2003 Shopping Mall was a thrilling concept for residents of Gurgaon as well as Delhites as Gurgaon was pioneer in starting Shopping Malls. Loads of people would visit these malls to experience and share the unique experience of shopping world class brands, Food courts and PVRs. As soon Shopping Malls were commissioned in Delhi (Vasant Kunj-Saket-West Delhi), the foot-fall from Delhi visitor reduced and with availability of Metro residents of Gurgaon had an comfortable option of visiting Saket Malls. The Gurgaon-Mall fever was reducing amongst the visitors but it did not deter the enthusiasm of investors and builder as in the case as stated above Commercial and IT Space, and has met the similar fate as most Shopping malls on Sohna Road are giving deserted look, A well known developer has not been able to commission its malls on NH-8 and Golf course road. Even on prominent location of MG Road, while, one project seems to be abandoned while other two projects seems to be creeping towards its commissioning.

Besides Shopping malls there has been quite a noticeable growth of shopping complexes through out Gurgaon, Besides shopping areas as provided in HUDA Sectors , South City, DLF City and Sushant lok, it is understood that present estimated growth is over 2500 shops in the areas of Mayfield, Nirwana Country, South City-2, Malibu Town and Sohna Road, whereas, most of them are giving deserted look.

Seeing the gloomy picture of Commercial Real estate scenario it is suggested more thoughtful efforts should be made by all concerned for a balanced and purposeful growth and development.

Mr Rikhye, Gurgaon Real Estate Blogger

Besides Fast growing demand of Commercial office space in Gurgaon , there is a surprising phenomena that the rental / leasing rates are showing a downward trend.

After having done the in-depth study it is understood that during the peak period of real estate in Gurgaon , the builders & developers took the advantage of market pulse and rushed out with various commercial projects , which ,at that booming period got the unconditional support of the investors where the brokers worked as catalyst

As on April 2010 the commercial buildings in Gurgaon on prime locations of the city are giving a deserted look and a prospective Lessee / Tenant has ample of scope of negotiation on the quoted price.

It is felt by the real estate expert that if the trend of unplanned growth continues ,then lot of commercial properties would meet the same fate as a consequence , as presently many Buildings on Sohna Road, M.G.Road.& Golf course Road are giving a “Vacant Look”.

www.commercialpropertiesingurgaon.com

Vikas Rikhye, Real Estate Blogger and Real Estate Gurgaon Consultant

After feeling the heat of recession ,the concept of “Assured Returns on Investment in Gurgaon” is gaining momentum , that shows the signs of market revival The investors having experienced the results of rash/short term investment, are now looking at safe & long term investment plans.

The properties rented to Multinational companies {MNCs} & Banks have become targeted investments .The investor now seems to settle for lesser returns as compared to earlier, but want “Assured Returns”.

A large number of investors are finding their destination on Sohna Road Gurgaon, where the presence of companies like Lenovo, Xerox, Global Insight is already being felt & brands like , Reebok, Rockport, Levis, Puma are about to show their presence. HDFC Bank on Sohna road is already a land mark.

Eateries like Wimpy, Cafe coffee day, Costa Coffee, Papa Johns, Danachoga are going to be amongst Kwality walls & Cream bell .The “shopping scenario” on Sohna Road is expected to undergo a big change in coming future.

As a result the rented properties on Sohna road are available on 7% to 9% Assured returns. The investors are increasingly getting interested as they can see the facts on the ground & are not left to imagination.

The trend continues to be positive for the following reasons:

• Gurgaon a hub for MNCs: Offering ideal working environments , Gurgaon, has become a hub for MNCs including BPOs & KPOs in Gurgaon.
• Gurgaon Properties are having a wide range of choice in Villas, Luxurious Apartments & Bungalows, as the prominent builders /developers like Unitech/ DLF are delivering the end product very close to international standards , having a positive scope of appreciation.
• Assured Return on Investment: In commercial sector, the properties are being offered on lucrative assured return basis as compared elsewhere.
• Close Proximity to IGI Airport: Gurgaon being in NCR {National Capital Region} & having close proximity to International Airport, has its own added advantage.
• NRI Services in Gurgaon: In Gurgaon a number of professional companies are offering their services to NRIs in the field of **Facility Management, Event management , Security Management & other essential services, bringing a better comfort level to NRIs
• Gurgaon Lifestyle : With existence of Golf courses, Modern Hotels, Multi-cuisine restaurants, Clubs ,Shopping malls, Gurgaon has placed itself, at a higher pedestal of lifestyle.
• Hospitals in Gurgaon:. Specialty Hospitals like Paras, Artemis, Forties, Max & Medicity not only attract medical tourism in Gurgaon but also reassure of the Healthcare facilities in Gurgaon, matching international
• Commuting Comfort: Ideally located on NH-8 with eight lane express highway & connectivity to Delhi by Metro by January 2010 brings Commuting Comfort level for Gurgaon.

Factors as stated above & Master Plan 2021 make NRIs & other investors “Gurgaon” as a long term investment destination.

Disclaimer

The Author is a freelance Blogger and real-estate consultant,The readers are advised to do their own research & analysis before taking any action. The author is not responsible for any consequence good or bad . The author is only delivering his views & inviting response in the way of comments/views from the readers

Vikas Rikhye, Property Consultant and Blogger

Investment in Real Estate Gurgaon is taking a very interesting turn. Despite the fact that in a very recent past the Residential properties in Gurgaon are showing positive signs, yet the investor in Gurgaon are seeking opportunities to invest in the properties having an advantage of “Assured Return on Investment” & this trend of investment seems to be picking up.

The concept in definite terms gives a comfort level to the investor but at the same time, the investor has to be very careful while investing & should keep the following cautions in mind:

Check the facts before investing:

About builder:

• That the Builder should have a good track record.
• The property offered should have all requisite sanctions, License and permissions from the competent authorities.
• That the property should be free from all kind of claims .mortgages and encumbrance.
• That the building in which property is offered has all the required completion & occupation certificates.
• That if required proper search report should be obtained from a legal expert

About the occupant:

• That the occupant has proper financial stability.[ As it has been observed in the past that some of the IT companies just disappeared due to lack of finance/orders} However it is safe to take expert opinion, who can furnish. the fact about the company/occupant after its findings.
• That terms of the Lease agreement should be carefully read & understood {legal opinion required}
• That the Lease agreement should be registered at 1st place & the Lease agreement should be registered subsequently as well.
• That there is sufficient “Lock in Period” to cover the risk factor.
• That in case of Retail outlet, pleas ensure that there is sufficient footfalls to ensure the existence/survival of the occupant in terms of profitability{Out source an agency to give its report}
• That the occupant is no where close to insolvency/bankruptcy

About the Individual Seller :

Beside the afore mentioned points in case of an individual seller the following points should be considered:

• That property is not under any family disputes.
• That there may not be any Third-Party claim.
• That there may not be any Silent Agreement.
• That the seller in the past has not executed any POA {Power of attorney}

That in case of POA transaction the original owner should be alive.

Besides as stated above please ensure that dealing should be conducted thru reliable/reputed Brokers & with the consent of legal experts. How ever, it is felt that “Options of Assured Return on Investment on Sohna Road are better as compared to “Options of Assured Return on Golf course road & MG Road Gurgaon.

Disclaimer

The Author is a freelance Blogger and real-estate consultant,The readers are advised to do their own research & analysis before taking any action. The author is not responsible for any consequence good or bad . The author is only delivering his views & inviting response in the way of comments/views from the readers.

Vikas Rikhye, Realtor and Gurgaon Real Estate Blogger

Real Estate Brokers in Gurgaon, during peak time, had booked in sales over 60% of Commercial office Space on Sohna Road for the investors in Gurgaon at the rate ranging Rupees 3500- 4500 per sq.ft. Remaining 40% was left with the promoters. These commercial projects on Sohna Road are now nearing completion & are ready for leasing.

The prevailing rentals Commercial office Space on M.G. Road.& Golf Course road are ranging between Rupees 75-85 per sq. ft. With the leasing rates as stated above, acts as an opportunity, for the Sohna Road investors, to offer lucrative leasing rate as low as Rs.40-45 per sq.ft.as it brings them almost 12%+ return over investment.

Since the balance of 40% of Commercial office Space has been still with the promoters, therefore, they are applying all marketing techniques/strategies to recover at least 15-20% more rental than being offered by the broker lobby. It seems that this is ,all because, by soliciting higher rental, the promoter, would be able to sell its balance 40% of stock at higher selling price ROI {Return on investment} basis. As per prevailing market practices the prospective investor is quite happy with 8.5% ROI & in the bargain, the promoter yields more profit on selling Rented Property on Sohna Road.

There seems to be a “Tug-of-war” over leasing rates between Broker lobby in Gurgaon & the Promoter as both are competing to achieve their desired motives .Under the circumstances the Broker-Lobby seems to be a better option to avail lesser leasing rates compared to the leasing rates offered by promoters.

Moral of the story :Real estate Brokers a better option for leasing on Commercial office Space on Sohna Road Gurgaon

Vikas Rikhye, Real Estate Gurgaon Blogger

Property on Sohna Road Gurgaon

With overall growth in Gurgaon , ” Properties on Sohna Road” were awaiting appreciation .As during the peak time, the Real estate developers in Gurgaon had launched a large number of Residential and commercial projects which over a period headed towards completion.

Residential Property on Sohna Road Gurgaon
With of global meltdown, about three months back the prices/rentals of properties were seen sliding down. The investors seemed to have lost confidence; new user/end user was in a confused state, expecting a further downfall.

However, now, the conditions seem to be changing in the recent past because of following:

• With successful launching of new projects by eminent builders like Unitech, it has re-imposed the confidence of actual/end user on BSP {basic-selling price}.
• Affordable homes, are also being advertised on Sohna Road by some of the upcoming builders.
• It is felt that with Government’s approval on Builder/Independent floors{GF+2 Floors}, some of the ambitious/reputed builders are launching “Affordable Houses” on Sohna road.
• It is also noticed that over a period of time the patience of investor also got exhausted as there has been no visible extra gains, while market condition had settled on a genuine price line.

Now since there seems to be a stability factor & the buyer also has varied options therefore the market has started moving towards a positive trend. The projects on Sohna road mainly. Park view city. Vipul greens & Orchid Petals are already showing signs of positive growth in sale/ rentals.

Commercial Property on Sohna Road

With projects of some of the companies like, Vatika ,Spaze, ILD are nearing Completion & it seems that the promoters have themselves analyzed the market conditions as a result they are offering best prices in terms of cost/leasing. Effective strategy of promoters by offering lower rentals of commercial property, as compared to commercial office space at “Golf course road” & “M.G. Road” has lured the MNCs to find their way on Sohna Road

For more details the Author can be contacted on the following address

Co-ordinators

#1.Local Shopping Complex, Park view city-1
Sohna Road Gurgaon 122018 (M) 98110-81078

Vikas Rikhye, Real Estate Gurgaon Blogger

With global downturn & liquidity crunch the real estate sector has been badly hit. The situation of Real estate in Gurgaon is no different.In the recent past Real estate sector in Gurgaon is facing the worst possible time.

During the peak time {which was about 2-3 years back} the Developers had overestimated the future requirements of the Real estate & launched a large number of Residential and commercial projects to meet anticipated demand that did not materialize as an effect of global meltdown.

Commercial office space in Gurgaon has been equally victim of circumstances. as the “Projects & buildings” which were launched few years back are getting completed, lying vacant, showing very clear signs of lack of demand.

The rentals for “Commercial office space” in Gurgaon are already down by 30-35%.A recent study conducted on the subject proves that Major /eminent developers are offering over 35% cut on the rentals as quoted 6months ago.

The report further says that due to a huge level of availability, the existing tenant are in process of renegotiating the leasing options on fresh terms & less rentals.

The “Commercial office space” buildings on Sohna Road Gurgaon lying vacant are already giving a deserted look.
The glass curtain commercial buildings on Golf course Road M.G.Road and many others on prime locations of Gurgaon, are also under the grip of rescission.

Under the present circumstances & obvious future downward their does not. seem to be any respite in the situation until the end of 2009.

 Vikas Rikhye, Real Estate Gurgaon Blogger

Land Prices in Gurgaon In early 2005 the land prices which were quoted @ Rs 10000-15000 per.sq.yd had seen its peak of more than Rs.50000-55000 per.sq.yd by the year 2007-2008. Whereas now in the present scenario more then 35% fall in price seems to have been recorded. The experts feel that more then 25% correction on present prices is still expected in next 4-5 months

This “U -Turn Trend” is visible, in other “Gurgaon real estate” related fields/ activities, as well.

Gurgaon Shopping Malls:  With original booking price of Rs.6000-7000 per.sq.ft, during peak time, the figure had touched the price of over Rs20000-25000 per.sq.ft. As on day the investors of Shopping Malls in Gurgaon feel a fall of over 30% in some cases, with a further correction in coming months. Unfortunately in some of the Malls, the investors are willing to sell on the purchase price.

Office Space in Gurgaon: In the year 2004-2005,In a good “Glass–curtain building” , the rent quoted was in the range of Rs 40-45sq.ft finally reaching a figure of more than Rs 125 per sq.ft by the year 2008 With the recent Melt-down, fall of over45%, has been recorded.

Residential Apartments in Gurgaon : There is a massive correction is being felt in this segment as well. Taking the year 2004-2005, as a base when “Apartments in Gurgaon” were launched at a basic price of Rs 1500-1600 per sq.ft had reached the the height of over Rs 5000 per sq.ft by the year 2008, have suffered a correction of over 40% fall in basic price. And the” New Housing–Projects in Gurgaon” are being launched @ Rs.2800 per sq.ft

Builders and Developers in Gurgaon: The Global meltdown has very adversely effected this segment of real estate as some of the prominent builder are almost at the point of insolvency.

-Even, some of the Prominent builders have put their existing Projects on hold.

-Whereas ,some of the “Builders in Gurgaon” seem to have abandoned their projects.

-Some of the construction sites are giving deserted look. All as stated above has left the investor in the state of fear & confusion

Real estate Agents in Gurgaon -Real estate Brokers in Gurgaon In the year 2005,there had been sudden increase in number of Brokers in Gurgaon ,as every one could see a big boom in real estate with rewarding result.& during the peak time Professionals like Doctors & qualified Engineers had been seen ,adopting Real estate Agent as profession.

But with recent slowdown & recession, this segment of real estate is equally effected & a large number of “Brokers in Gurgaon” have left this profession , while many others are exploring alternate avenues of employment.

In present scenario of recession “U -Turn in Real estate Gurgaon” was inevitable

Disclaimer: The Author is a freelance Blogger and real-estate consultant, The readers are advised to do their own research & analysis before taking any action. The author is not responsible for any consequence good or bad. The author is only delivering his views & inviting response in the way of comments/views from
the readers.