Noida is a satellite city falls under National Capital Region (NCR). The city is encompassing a 360-degree development. The entire NCR has booked a boom in real estate growth selling more than 10 million sq. ft. commercial estate in 2017. The statistics show the pace of the growth in which pre-leased property consultant in Noida has made a substantial contribution towards favorable investment opportunities. The factual status prominently depicts how the demand curve of the pre-rented property is steeply rising in Noida. Before going into further detail take a quick understanding of the concept of behind the pre-leased property.
What is Pre-leased Property?
A pre-leased or a pre-rented property signifies a property that has already been sold or leased to a tenant and afterward sold to the market. The transfer of property to the new owner essentially includes the transfer of lease and thus the subsequent rent income will go to the credit of the new owner’s account. And thereby, a new buyer of the pre-rented property is guaranteed with an assured rental income as per deed of agreement of the lease and ensures a settled ROI (Returns on Investment) from the day one of investment.
How is the Pre-leased Property in Noida Beneficial to the Investor?
There is no reason for being hanged in doubt for investing in pre-rented property in Noida as the assured income is the greatest attraction to the investor and that mandated them to decide investment destination to Noida. The primary objective of investing in pre-leased property in Noida is to earn an assured fixed monthly income from rent for at least a period of 3-5 years and then sell out the property to another person and thereby gain the capital appreciation.
What are the Factors that Responsible for a Higher Rental Yield in Noida?
The entry price of pre-leased propertybeyond a shadow of a doubt acts as the biggest deciding factor in determining the rental yield. Lower is the price for a pre-rented property, higher is the rental yield. Adding to this factor, the quality of the tenant plays a key role as another factor in determining the yield. If the tenant is a PSU like a bank, insurance company, and Government company, the rental yield can range from 6% to 8%. Since such tenants stay for a longer period the yield generates a low. But when a pre-rented property is occupied by MNCs like foreign banks, investment banks or a domestic company like IT/ITeS, BPOs etc. the yield books a higher range 8% to 12%. Now the fact is that how an investor can ascertain if the tenant will continue to stay for a longer period. It can be fairly presumed that the tenant may continue to remain if it spends considerably higher amount say Rs.2000 to Rs.4000 per sq. ft. for its interior décor.
Inthe end, it can be concluded that the superlative infrastructural development with all modern facilities and proximity to Delhi, the capital city of India has made Noida a bird’s eye view to the investor.