Over the past few years, Sector 127 has started booming once again after the temporary pause due to Covid-19. The area has been witnessing great demand for pre-leased commercial properties, as it provides great stable income annually. Many investors including (ultra-high-net-worth individuals), businessmen, and homeowners are realizing the true potential of pre-leased properties. A study showed that almost all pre-leased properties in Noida offer anywhere between 9-15% of interest in terms of rental yields, whereas in residential properties it is 2-6%.
Bhutani Group, for instance, is one of the major commercial property developers in Noida that offers pre-leased investment options. Bhutani Technopark, which is a recently established project in Sector 127, invites several investors and promises to provide a handsome rental income.
Most investors are now aiming at selecting the right property that comes with a high-quality tenant who could provide steady rental income. Due to this, many land parcels, warehouses, office spaces, and residential properties in Sector 127 are witnessing great demand from investors to invest in commercial real estate in Noida. Therefore, here are some points that indicate the benefits of pre-leased properties in Sector 127, Noida.
Variety in Infrastructures
When it comes to investing in pre-leased properties in Noida, Sector 127 has numerous opportunities for both the end-users and investors. The area is filled with many commercial and residential projects that offer pre-leased properties for investment. The investors would be able to avail more rental income from commercial sectors as there are many potential Fortune 500 companies present in the locality.
In comparison with residential projects, the commercial projects provide a little higher interest in Sector 127. Apart from this, Sector 127 has been showing great growth in the real estate market due to its higher capital value appreciation of many projects. In addition, there are other prominent developers such as Bhutani Group, Kalpataru Group, and State Estate that are currently situated in the area.
As Sector 127 is located in one of the prime locations of Noida, it attracts many Fortune 500 companies. It is so because the area provides greater connectivity with the other parts of Delhi NCR. Sector 127 is also well connected to National Highway (NG) 8, which is also known as the Delhi – Gurgaon Expressway. Because of this, the area is close to Huda Metro Station on the Yellow Line, which ensures seamless connectivity.
The reason why connectivity plays a huge role in terms of pre-leased properties is because tenants would be able to connect with other parts of Noida. As the area offers great reachability and better dealings with other parts of the city , it allows the tenants to have a longer period of lease agreement with the investors. If the area does not seem prosperous, then most tenants and investors might invest for a shorter period. The area provides both the investor as well as the tenant with the opportunity to fulfill their needs.
Recently a study showed that the average capital prices in Sector 127 have doubled from Rs 5,500 per sq ft in 2010 to 9,800 per sq ft in 2020. This fact clearly states how well Sector 127 is growing and inviting potential customers to invest in the locality. Though the capital prices were slightly affected due to the COVID-19 pandemic, the market around Sector 127 has regained momentum since August 2020.
The area also offers low-rise pre-leased properties for small investors and people that are seeking to invest for a shorter period. Many upcoming projects, such as the new Jewar Airport near Noida and the proposed metro extension, are likely to increase the capital value of the area. As a result, the investors would be able to gain more rental income as the area continues to grow.