What kind of rental yields can be expected from commercial properties along the Dwarka Expressway in 2024? [Updated on: January 2024]
Commercial properties along the Dwarka Expressway in 2024 can be expected to offer the following rental yields:
- Retail Spaces - Around 8% to 12% for units in malls and shopping complexes. Demand for retail spaces is expected to increase due to the rising number of residents, offices and industries in the area.
- Office Spaces - Yields of around 9% to 15% for Grade A and B office spaces. The Dwarka Expressway is emerging as a commercial hub attracting various businesses and startups.
- IT Parks/SEZs - Rental yields of 10% to 20% depending on the scale and specifications of the projects. The Haryana government is promoting IT parks and SEZs along the expressway.
- Multiplexes/Food courts - Around 15% to 20% yields for properties leased out to established brands. They will benefit from the catchment population residing along the expressway corridor.
- Others like banks, hotels - Rental incomes of 6% to 12% for built-to-suit commercial spaces. Demand will come from the growing residential and institutional developments in the area.
The expected rental yields mentioned above are conservative estimates based on current market trends. Actual yields will depend on factors like:
- Scale, design and specifications of the commercial project
- Proximity to key roads, institutions and residential catchments
- Experience and negotiating power of the property owner/investor
- Overall demand-supply dynamics for that particular commercial segment
- Prevailing rental rates in the Dwarka Expressway region
Moreover, annual rental increases of around 5% to 15% can also be factored in going forward as the Dwarka Expressway corridor transforms into a commercial hub with multiple infrastructure initiatives.
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