Emaar Capital Tower Office Space, MG Road Gurgaon

Emaar Capital Tower is a pair of finished office buildings, Capital Tower 1 and Capital Tower 2, on Mehrauli-Gurgaon Road at Sikanderpur, Sector 26, Gurugram. They were built in the Emaar MGF years and appear today on Emaar India's own site. Each is ground plus 10 to 12 floors over three basements, with floor plates of about 37,000 sq ft, and Guru Dronacharya metro station is within about half a kilometre. The row this page replaces printed Price on Call and called the buildings a new launch. They are let, and they carry some of the highest office rents on MG Road.

Priced asks run about Rs 26,000 to Rs 30,500 per sq ft, and offices let at Rs 140 bare to Rs 170 furnished. Divided, that is a gross yield of about 5.5 to 6 per cent on the let units, and nearer 7 on a vacant office bought at the lower end and let at market rent.

What sellers ask, divided by the area

• A 1,196 sq ft office let to a Japanese company at Rs 140 on a nine-year lease with a three-year lock-in, offered at Rs 3.65 crore: Rs 3,65,00,000 over 1,196 is Rs 30,518 per sq ft. The tenant takes about 10,000 sq ft in the building.
• A 4,200 sq ft furnished office let to a multinational at Rs 140, offered at Rs 11.76 crore: Rs 28,000 per sq ft.
• A 1,925 sq ft office at Rs 5.45 crore: Rs 28,312 per sq ft.
• A 2,200 sq ft office at Rs 26,000 per sq ft, no tenant stated: about Rs 5.72 crore.

For context, a 99acres record gives the launch rate as Rs 19,500 per sq ft and projected Rs 28,000 to Rs 30,000 once the buildings were finished. The asks have arrived exactly there. So the building's band is about Rs 26,000 vacant to Rs 30,500 let, and the lease is what moves a unit within it.

The four one-unit pages that now fold into this one

This site carried four separate pages for pre-leased offices in Emaar Capital Towers, Sector 26. Three printed no price. One, for a 1,200 sq ft office, printed about Rs 28,000 per sq ft while carrying Rs 5.45 crore behind it, which on 1,200 sq ft would be Rs 45,400: that figure belongs to the 1,925 sq ft listing above, not to a 1,200 sq ft unit. They now fold into this page.

The three 1,200 sq ft pages are very likely one or two units listed more than once; a 1,196 sq ft office is on the market now, and it is that size rounded. At its own ask it would be Rs 3.65 crore rather than Rs 3.36 crore, because a let unit is priced from its lease, not from the building's average. The 6,000 sq ft unit matches a pre-leased 6,000 sq ft office a broker lists in the building without a price; the tenant and the rent will set it.

The rent, and the yield it produces

Offices let at about Rs 140 per sq ft a month bare and Rs 160 to Rs 170 furnished. A 2,005 sq ft bare office asks Rs 3 lakh a month, about Rs 150 per sq ft. Maintenance is quoted at about Rs 16 on top. On MG Road only the newest towers and the ground-floor shops let higher.

Now divide. The 1,196 sq ft unit at Rs 140 earns Rs 1,680 a year per sq ft, Rs 20.1 lakh in all: 5.5 per cent on Rs 3.65 crore. The 4,200 sq ft unit at Rs 140 earns Rs 70.6 lakh a year: 6.0 per cent on Rs 11.76 crore. A vacant office bought at Rs 26,000 and let at Rs 150 would earn 6.9 per cent, before the months it takes to find the tenant and the cost of fitting it out. None of the listings print a yield of their own, so there is no claim here to check against its arithmetic; the numbers above are the check.

How to price a unit here

Price a let unit from its rent: rent divided by yield. At Rs 140 and 5.5 per cent, an office is worth about Rs 30,500 per sq ft, which is the Japanese-tenant unit's ask. At Rs 140 and 6 per cent it is Rs 28,000, the multinational unit's ask. At Rs 160 and 6 per cent it would be Rs 32,000, so a furnished lease at the top of the range could support more than any ask on the market now. The yield a buyer accepts is the price of the tenant's quality and the years left on the lease.

Compare the road. ABW Tower at IFFCO Chowk asks about Rs 18,000 upstairs and lets at Rs 80 to Rs 130. Time Tower on MG Road asks Rs 23,100 to Rs 24,900 at about Rs 150. DLF Corporate Park sits nearby. Capital Tower is the dearest of them per sq ft, and the rent is why. The road as a whole is on the MG Road office page.

Two towers, one address

Emaar publishes a separate page for Capital Tower 1 and Capital Tower 2, both at Sikanderpur, Sector 26. The floor counts differ between listings: ground plus 12 and ground plus 11 on one, three basements with ground plus 10 and ground plus 11 on another. Floor plates are about 37,000 sq ft, and offices are sold from about 1,900 sq ft of gross area upward, so smaller units such as the 1,196 sq ft office are subdivisions. Building totals differ too: 3,60,000 sq ft on one page and about 4,07,000 on another for Capital Tower 1. None of this changes the rate, but a quote should name the tower and floor, because listings often call either one simply Capital Tower.

Registration and title

One portal prints RERA 331 of 2017 against the project. That number could not be matched to either tower, and a finished office building sold unit by unit normally needs no registration at all. A purchase rests on the registered conveyance deed, the occupation certificate and the lease in place. The buildings date from the Emaar MGF joint venture, which was split in 2016 to 2018, with these towers going to Emaar India; an older unit's chain of title may therefore start with Emaar MGF, which is normal and worth reading.

Who this suits, and who should look elsewhere

A let unit suits an investor who wants a multinational tenant on MG Road, beside a metro station, and accepts about 5.5 to 6 per cent gross for it, with units from about Rs 3.4 crore. A vacant unit suits an occupier, or an investor who can carry a few empty months for a yield nearer 7 per cent. It does not suit a buyer who needs 7 per cent from day one, and it does not suit one who compares the ask with ABW Tower's Rs 18,000 without comparing the rents too. More let stock is on the pre-leased property page, and Emaar's other Gurgaon projects on the Emaar India page.

Before you pay anything

1. The tower and floor: Capital Tower 1 or 2.
2. The lease: tenant, rent, start date, lock-in, deposit and the next step-up.
3. The arithmetic: rent times twelve over price, against 5.5 to 6 per cent.
4. The area: super area of the unit, and whether it is a subdivided floor.
5. The title: the conveyance deed, the occupation certificate and a charge search.

Frequently asked questions

What is the price of office space in Emaar Capital Tower, MG Road?

Priced asks run about Rs 26,000 to Rs 30,500 per sq ft. A 1,196 sq ft office let to a Japanese company asks Rs 3.65 crore, Rs 30,518 per sq ft; a 4,200 sq ft furnished office let to a multinational asks Rs 11.76 crore, Rs 28,000; a 1,925 sq ft unit asks Rs 5.45 crore, Rs 28,312; and a vacant 2,200 sq ft office is offered at Rs 26,000.

What rent does an office in Emaar Capital Tower earn?

About Rs 140 per sq ft a month bare and Rs 160 to Rs 170 furnished, with maintenance of about Rs 16 on top. A 2,005 sq ft bare office asks Rs 3 lakh a month, about Rs 150. That is among the highest office rents on MG Road, which is why the building trades at the top of the road's prices.

What is the rental yield on a pre-leased office in Emaar Capital Tower?

About 5.5 to 6 per cent gross. The 1,196 sq ft unit let at Rs 140 earns about Rs 20.1 lakh a year on Rs 3.65 crore, 5.5 per cent; the 4,200 sq ft unit let at Rs 140 earns Rs 70.6 lakh on Rs 11.76 crore, exactly 6.0 per cent. A vacant office bought at Rs 26,000 and let at Rs 150 would yield about 6.9 per cent.

Is Emaar Capital Tower a new launch?

No. Capital Tower 1 and Capital Tower 2 are finished, occupied office buildings on MG Road; a 99acres record gives the launch rate as Rs 19,500 per sq ft, and Emaar's own pages list both towers as built. Tenants include a Japanese company on about 10,000 sq ft and a coworking operator in Capital Tower 2. There is nothing to wait for.

Where is Emaar Capital Tower, and how close is the metro?

On Mehrauli-Gurgaon Road at Sikanderpur, Sector 26, Gurugram. Guru Dronacharya metro station on the Yellow Line is within about half a kilometre, one broker describes the building as opposite it, and Sikanderpur, where the Rapid Metro meets the Yellow Line, is a few minutes' walk. NH-48 is about five minutes by road.

Is there more than one Capital Tower?

Yes. Emaar lists Capital Tower 1 and Capital Tower 2 at the same address in Sector 26, with a separate page for each. Listings give them as ground plus 10 to 12 floors over three basements, with floor plates of about 37,000 sq ft. Name the tower and floor on any quote, because listings often call both simply Capital Tower.

Does Emaar Capital Tower have a RERA number?

One portal prints RERA 331 of 2017, but that could not be matched to either tower and a finished office building normally needs none. A purchase rests on the registered conveyance deed, the occupation certificate and the lease. Ask the seller for all three, and check the title for any charge before paying.