DLF Plaza Tower Office for Sale, DLF Phase 1 Gurgaon

DLF Plaza Tower is an office building of about 2.2 lakh sq ft in DLF Qutub Enclave, DLF Phase 1, about a kilometre from the Phase 1 Rapid Metro station. One portal dates it to 1998. DLF lists it on its own offices site and leases floors directly, and it has a rooftop club with a gym and a pool for occupants. The row this page replaces printed a sale price of about Rs 22,000 to Rs 28,000 per sq ft. No listing, deed or lease was found at that price, or at any price.

That is the main finding. Four searches for sale, resale and pre-leased offices in the building returned leasing pages, a portal's resale page with no priced unit on it, and nothing else. So the useful thing this page can do is show what the rent says a floor would be worth, and what a buyer should ask before believing anyone who offers one.

What the rent says a floor is worth

The building lets at Rs 100 to Rs 128 per sq ft a month: Rs 128 on a bare-shell unit, Rs 125 described as premium space and Rs 100 on another listing. Those are the rates on this site's rent page for DLF Plaza Tower. A year's rent is 12 times the monthly figure: Rs 1,200 to Rs 1,536 per sq ft.

• At a 7 per cent gross yield: Rs 1,200 over 0.07 is Rs 17,143, and Rs 1,536 over 0.07 is Rs 21,943 per sq ft.
• At a 6 per cent gross yield: Rs 1,200 over 0.06 is Rs 20,000, and Rs 1,536 over 0.06 is Rs 25,600 per sq ft.

So a let floor here would be worth about Rs 17,000 to Rs 25,600 per sq ft, if a buyer wants 6 to 7 per cent. Why 6 to 7: let offices nearby trade in that band. Veritas Tower on Golf Course Road asks Rs 18,200 to Rs 24,000 per sq ft against rents of Rs 110 to Rs 130, which is 5.5 to 8.6 per cent gross, and DLF Corporate Park on MG Road asks Rs 18,400 to Rs 22,600.

The old band, divided

The old Rs 22,000 to Rs 28,000 is not absurd. Put the rents against it:

The worst pairing, Rs 100 rent on a Rs 28,000 price, returns 4.3 per cent; the best, Rs 128 on Rs 22,000, returns 7.0 per cent. The top of the old band only makes sense for a floor let at the top rent to a strong tenant on a long lease. The trouble is not the arithmetic but the source: none was found. This page therefore prints the rent-based estimate and marks it as one.

Who owns the floors

Most Gurugram office buildings were sold floor by floor to investors. This one is on DLF's own offices site, and DLF leases in it directly, which is why sale asks are so thin. Whether DLF ever sold any floor could not be established from any page. That changes what a buyer must check. If someone offers a floor in Plaza Tower, the first question is not the price but the title: a registered conveyance deed in the seller's name, a charge search, and confirmation from the building's management that the floor is not DLF's.

For a tenant the DLF ownership is a plus: consistent lease terms floor to floor and a listed company as the counterparty. For an investor it means there is very little to buy, and a floor that does come up is worth checking twice.

The building

About 2.2 lakh sq ft on 12 floors, by one count, is a plate of about 18,300 sq ft, and the largest unit marketed for lease, about 16,500 sq ft, fits inside it. Smaller units start at about 3,588 sq ft, an unfurnished floor section. The developer's page names a rooftop club with a fitness centre and a swimming pool for occupants, and LEED Platinum and LEED Zero Water certification. The DLF Phase 1 Rapid Metro station is about 1 km away. Maintenance was not published on any page; in two buildings this site has priced it is about Rs 19 a month at Orchid Centre and about Rs 18 at Paras Trinity, and a club and pool will push it up.

DLF Qutub Plaza is a different building in the same phase, with shops below; its rent page covers it. A listing that says "DLF Phase 1, Plaza" could be either, so confirm the building name on the deed.

How it compares

DLF Centre Court on Golf Course Road is in the same position: no sale ask published, and a rent-based estimate of about Rs 15,000 to Rs 21,600. Veritas Tower and DLF Corporate Park have real asks, at about Rs 18,200 to Rs 24,000 and Rs 18,400 to Rs 22,600. Plaza Tower's estimate of Rs 17,000 to Rs 25,600 sits over the same range, a little higher at the top because its rents are higher. The corridor's other buildings are on the Golf Course Road office page, and the neighbourhood on the DLF Phase 1 page.

Who this suits

A tenant who wants a DLF-managed office in Phase 1 should lease here; the rent page covers that. An investor who wants to own an office on this corridor will usually do better in a strata building with real asks and a lease history, such as Veritas Tower. An investor who is offered a floor in Plaza Tower should buy only after the title check, and at a price whose rent divides out to at least 6 per cent.

Before you pay anything

1. The title: a registered conveyance deed in the seller's name; confirm the floor is not DLF's.
2. The building: Plaza Tower, not Qutub Plaza, on the deed.
3. The lease: tenant, rent, lock-in, deposit and escalation.
4. Maintenance: the rate, what it covers including the club, and who pays it.
5. The arithmetic: rent times twelve over price; at Rs 128 a month, Rs 25,600 is 6 per cent.

Frequently asked questions

What is the price of office space for sale in DLF Plaza Tower?

No priced sale ask was found. One portal keeps a resale page for the building, but no listing with a price and an area surfaced in four searches, and DLF itself offers the building for lease. The rents, Rs 100 to Rs 128 per sq ft a month, imply about Rs 17,000 to Rs 25,600 per sq ft at gross yields of 6 to 7 per cent. That is an estimate from the rent, not an ask.

Where did the old Rs 22,000 to Rs 28,000 per sq ft come from?

No source for it was found. It is not impossible: at Rs 100 to Rs 128 a month it would yield about 4.3 to 7.0 per cent gross, which is within the Golf Course Road range. But no listing, deed or lease was found at that price, so this page treats it as unsupported and prints the rent-based estimate instead.

What rent does DLF Plaza Tower earn?

Rs 100 to Rs 128 per sq ft a month on the listings found: Rs 128 on a bare-shell unit, Rs 125 described as premium space and Rs 100 on another listing. Maintenance is on top and was not published; ask for it in writing.

Who owns DLF Plaza Tower?

DLF lists the building on its own offices site and leases floors in it directly. Whether any floor was ever sold to an investor could not be established. A seller claiming to own a floor must show a registered conveyance deed, because the default here is that DLF is the landlord.

How big is DLF Plaza Tower, and when was it built?

About 2.2 lakh sq ft, on 12 floors by one count, which is a plate of about 18,300 sq ft. Units on the leasing market run from about 3,588 to 16,500 sq ft. One portal dates the building to 1998. The developer's page names a rooftop club with a fitness centre and pool for occupants, and LEED Platinum and LEED Zero Water certification.

How far is DLF Plaza Tower from the metro?

About 1 km from the DLF Phase 1 station of the Rapid Metro, a ten-minute walk or a short auto ride.

Is DLF Plaza Tower RERA registered?

No, and none is expected: the building has stood since about 1998, long before Haryana began registering projects in 2017. A purchase, if one were offered, would rest on the conveyance deed, the occupation certificate and any lease in place.