What is a Pre-Leased Property?
A tenant already occupies a pre-leased property under a lease agreement for a fixed term. This setup guarantees you a steady income right from the start. Pre-leased properties can range from banks and ATMs to commercial office spaces and retail shops. Here's a snapshot of the potential returns you can expect from different types of pre-leased properties:
- Banks/ATMs: Typically offer a return on investment (ROI) between 4.5% and 6% per year.
- Retail Shops: Often provide an ROI in the range of 4.5% to 6% per year.
- Commercial Offices: Generally offer higher returns, ranging from 5% to 8% per year.
While residential flats are a popular choice, they often need to match the higher returns of commercial pre-rental properties in Noida. The major advantage of pre-leased properties is that you start earning income immediately without waiting for a tenant to move in. Additionally, these properties often appreciate over time.
Key Considerations for Buying Pre-Leased Property
When investing in a pre-leased property, keep these factors in mind:
- Location: Opt for properties in prime locations that attract high-quality tenants.
- Quality and Age of the Building: Choose well-maintained properties that are still young.
- Brand Value of the Tenant: Properties leased to reputable companies or brands are generally more reliable.
- Lease Terms: Review the lease duration and any clauses related to rent increases. Ideal leases are long-term (9 to 25 years) with periodic rental increases (10% to 25%).
If you're exploring investment opportunities in Noida, a pre-leased property could be a smart move. For a curated list of the best pre-rental properties in Noida and their monthly rental rates, contact us today. Let us help you find the perfect investment that suits your needs and maximizes your returns.