Andaz Aerocity Office for Sale, Asset Area 1 Delhi

Office space for sale in Andaz Aerocity Delhi is offered "pre-leased, on a rent-yield basis" — which is how the market describes an asset whose price is not published, because the price is an output rather than a quote. It is calculated from two things: the rent the space earns, and the yield a buyer is willing to accept.

You can do that arithmetic yourself before you ever speak to anybody, and you should.

The calculation, on this building's own numbers

Warm shell space here lets at about Rs 245 per sq ft a month, with premium space quoted at around Rs 250. So one square foot earns roughly Rs 2,940 a year. Divide that by the yield to get the capital value:

Five to six per cent is the band that applies here. Delhi NCR commercial property generally yields between 6 and 10 per cent, but the premium hubs — Aerocity and Cyber City — sit lower, at about 5 to 6 per cent, because buyers accept less income in exchange for capital appreciation and near-zero vacancy risk.

That inverts the usual instinct. A higher yield looks better on a spreadsheet and is usually the market pricing in risk: a weaker tenant, a softer location, a shorter lease. Paying 5 per cent in Aerocity is buying the opposite — a district where most space is leased before completion and vacancy barely exists.

What actually decides your price, once the arithmetic is done

Everything above is the starting frame. Four things move the number from there, and all four are in documents:

• The lease deed. Tenant, rent, start date, lock-in, escalation, deposit — and the bank statement showing the rent actually arriving. A 5 per cent yield on a lease with two years left and no lock-in is not a 5 per cent yield.
• The remaining term. A pre-leased asset with eight years to run and a 15 per cent escalation every three years is a different instrument from one with eighteen months left, at the same headline yield.
• The escalation clause. It is what turns today's yield into tomorrow's. Get the percentage, the interval and whether it is fixed or a market review.
• Whether the rent is warm shell or fitted. Rs 245 here is the warm shell rate — the tenant built the interior. That matters at re-letting: their fit-out leaves with them or is negotiated, and the next tenant may need a rent-free period to rebuild it.

Why Aerocity commands what it does

The district sits beside Indira Gandhi International Airport, holds occupancy above 95 per cent, and carries a rent premium of roughly 15 to 20 per cent over other Delhi micro-markets. For an income buyer those three facts are the entire case: a market that full is a market where a vacating tenant is replaced rather than mourned.

Published readings of the district's rents do disagree — one puts the range at Rs 250 to Rs 350 per sq ft a month, another at Rs 150 to Rs 250 — and they are probably measuring different things, fitted against warm shell or newer towers against older stock. At Rs 245 warm shell this building sits at the bottom of the higher reading and the top of the lower one. For a buyer that matters directly: the reversion assumption you make at lease expiry should come from the lower reading, not the upper.

The tower itself was completed around 2015 within the Andaz complex at Asset Area 1, with listings to about 30,000 sq ft and warm shell floors of 4,600 and 7,100 sq ft. A 2015 building is young enough that lifts, chillers and common areas are not yet the capital-expenditure question they become at twenty years — but ask what the sinking fund holds anyway, because on a pre-leased asset that cost lands on the owner, not the tenant.

Who buys this, and who should not

Aerocity and Cyber City are dominated by large developers, institutional owners and funds, with high-ticket capital. At about Rs 22 to Rs 27 crore for a single 4,600 sq ft floor, this is not a first commercial purchase. It is an income allocation for a buyer who already holds property and wants a low-volatility line in it.

What it is not is a yield play. If income is the goal, the same money placed in a Gurugram Grade A building at 6.5 to 8.7 per cent produces materially more rent for the same capital. You would be accepting a weaker location and a shorter tenant queue in exchange — which is exactly the trade the yield gap describes.

Frequently asked questions

What does office space cost in Andaz Aerocity Delhi?

No capital rate is published, because the asset is sold pre-leased on a rent-yield basis. You calculate it: warm shell space here lets at about Rs 245 per sq ft a month, so one square foot earns about Rs 2,940 a year, and at the 5 to 6 per cent yield that Aerocity commands that is roughly Rs 49,000 to Rs 58,800 per sq ft — about Rs 22 to Rs 27 crore for a 4,600 sq ft floor.

What yield should I expect on a pre-leased asset here?

About 5 to 6 per cent. Delhi NCR commercial property generally yields 6 to 10 per cent, but premium hubs like Aerocity and Cyber City sit lower because buyers accept less income for capital appreciation and near-zero vacancy risk. A higher yield is usually the market pricing in risk, so a low yield here is not a bad deal — it is what a full market costs.

What should I read before agreeing a price?

The lease deed — tenant, rent, start date, lock-in, escalation and deposit — with the bank statement showing the rent actually arriving. The remaining term, because eight years to run and eighteen months are different instruments at the same headline yield. The escalation clause, its percentage, interval and whether it is fixed or a market review. And whether the rent is warm shell or fitted, since the tenant's fit-out leaves with them and the next one may want a rent-free period to rebuild it.

Why is Aerocity's yield lower than the rest of Delhi NCR?

Because the risk is lower. The district holds occupancy above 95 per cent, carries a rent premium of roughly 15 to 20 per cent over other Delhi micro-markets, and sits beside the airport. In a market that full a vacating tenant is replaced rather than mourned, and buyers pay for that certainty by accepting less income.

What reversion rent should I assume at lease expiry?

Take the conservative reading. Published ranges for the district disagree — Rs 250 to Rs 350 per sq ft a month on one, Rs 150 to Rs 250 on another — probably because they measure fitted against warm shell, or newer towers against older stock. This building's Rs 245 warm shell sits at the bottom of the higher range and the top of the lower one, so a reversion assumption drawn from the upper figures would be optimistic.

Is this a good income investment?

It is a low-volatility one rather than a high-yielding one, and the distinction matters. At about Rs 22 to Rs 27 crore for one floor this is an allocation for a buyer who already holds property, not a first commercial purchase. If income is the goal, the same capital in a Gurugram Grade A building at 6.5 to 8.7 per cent produces materially more rent — in exchange for a weaker location and a shorter tenant queue, which is precisely what the yield gap is describing.

Our view

"Price on request" on a pre-leased asset is not evasion, it is the honest answer — the price genuinely does not exist until a yield is agreed. What is unhelpful is leaving a buyer without the arithmetic, because the arithmetic is simple and it puts you in the conversation as an equal: Rs 245 a month is Rs 2,940 a year, and Rs 2,940 divided by your yield is the price. Bring that number, then spend the rest of your attention on the lease deed, which is where the actual risk lives.

In short: no published rate, about Rs 49,000 to Rs 58,800 per sq ft implied by this building's own rent at the 5 to 6 per cent Aerocity commands, and a lease deed that decides whether that yield is real.

For the letting side of this same building, see office space for rent at Andaz Aerocity. For a Gurugram building where the yield runs 6.5 to 8.7 per cent, Splendor Spectrum One in Sector 58, and for a metro-served South Delhi alternative at half the rent, ABW Rectangle One at Saket.