Why Invest in Commercial Space in Gurugram? [Updated on: January 2024]


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Gurugram is emerging as a preferred commercial real estate investment destination in India due to numerous factors. Here are the top reasons why investors should consider commercial properties in Gurugram:




  1. Growing Office Market: Gurugram has India's largest office market outside Bengaluru. It is a preferred destination for IT/ITes and corporates. The burgeoning office market is attracting commercial investments.


  2. Robust Demand: There is robust demand for Grade A office spaces from companies looking to set up offices and expand their operations. Occupancy levels are rising steadily in Gurugram.


  3. Strong Fundamentals: Gurugram has strong market fundamentals with lower vacancy levels and stable rentals. The rent to cost ratio is also favorable for commercial properties.


  4. Excellent Connectivity: Gurugram is well-connected to Delhi and other key locations via multiple highways, the upcoming Delhi-Mumbai Expressway and the metro. This enhances accessibility for corporates.


  5. Infra upgrades: Ongoing and planned infra upgrades like metro extension, expressways and IT parks will cater to rising commercial demand in the future.


  6. Stable Yields: Commercial yields from rentals of office spaces in Gurugram are stable at around 9-10% currently. This steady income potential attracts investors.


  7. Rental Upside: Rentals of commercial office spaces in prime locations are projected to see an upward trend due to rising demand and constrained new supply. This bodes well for investors.


  8. Government support: The government is focused on transforming Gurugram into a major commercial hub. This support adds to investor confidence.


  9. Diversification: Investing in commercial real estate offers investors an opportunity to diversify their investment portfolios. It provides stable rental income vs. capital appreciation.


  10. Liquidity: There is good liquidity in the commercial property segment of Gurugram due to rising demand from occupiers. This makes it easier for investors to exit if required.


  11. Capital Appreciation: Commercial properties in prime locations of Gurugram have seen capital appreciation of 8-10% annually over the long term. This rate is projected to increase further in the future.



To summarise, investing in grade A commercial office spaces in Gurugram offers investors multiple benefits in the form of robust demand fundamentals, steady yields, potential rental upside, government support and sustained capital appreciation. The rising office space requirements of multinationals and corporates ensure that commercial demand will remain robust over the medium to long term. This makes Gurugram a promising destination for commercial real estate investments currently in India.

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