Emaar Palm Square Office for Sale, Sector 66 Gurgaon

Emaar Palm Square is a finished office and retail building of about 3,23,606 sq ft on about 3.5 acres in Sector 66, on Golf Course Extension Road, at the entrance to Emaar's Palm Drive. It rises three basements, ground and 14 floors, with a two-level retail arcade and a food court at the base and offices above. Emaar MGF received its occupation certificate in December 2014. The row this page replaces printed about Rs 15,700 per sq ft beside a from-price of Rs 68.2 lakh, as though the two described one unit. They do not: Rs 68.2 lakh at Rs 15,700 buys 434 sq ft, and no office in the building is that small.

Priced office asks run about Rs 12,100 to Rs 13,000 per sq ft, under the portal's Rs 15,700 average, and offices let at about Rs 50 to Rs 84 a month. Divided, that is a gross yield of about 6 to 7.6 per cent: a steadier income than the flats around it, in a building away from the metro.

What sellers ask, divided by the area

• A 1,074 sq ft office let to a Malaysian company at Rs 60, Rs 64,440 a month on a lease running to February 2029, offered at Rs 1.30 crore: Rs 1,30,00,000 over 1,074 is Rs 12,104 per sq ft.
• A 3,000 sq ft fully furnished office of 40 workstations at Rs 13,000 per sq ft: 3,000 times Rs 13,000 is Rs 3.90 crore, as the listing says.
• An 802 sq ft unit at Rs 2.50 crore: Rs 31,172 per sq ft. At that rate it is almost certainly a shop in the arcade, not an office; the listing does not say.
• Offices of 952 and 1,630 sq ft are on the market without published prices.

The portal average is about Rs 15,700, against about Rs 18,900 for Sector 66 as a whole, which mixes in the dearer flats. One broker quotes offices from Rs 65 lakh and shops from Rs 72 lakh. On the listings that print both a price and an area, the office rate is about Rs 12,100 to Rs 13,000; the average sits higher because it counts shops.

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

This site carried two pages for a 1,054 sq ft office in The Palm Square, Sector 66, one of them with the city misspelt, both printing price of call and a new-launch status. Every other listing of that unit offers it to let, at about Rs 75 per sq ft furnished, not for sale. They now fold into this page, and leasing in the building has its own Palm Square rent page.

If the owner would sell, Rs 1.37 crore at the building's priced rate is the fair start, and at Rs 75 a month it would yield 6.9 per cent. But the evidence is that it is a unit to rent, and a buyer ringing about it should expect to be offered a lease.

The rent, and the yield it produces

Offices let at about Rs 50 to Rs 84 per sq ft a month. A 1,163 sq ft office asks Rs 88,000, about Rs 76. A 920 sq ft office asks Rs 75,000, about Rs 82, and a 1,080 sq ft one Rs 90,000, about Rs 83. A 1,296 sq ft office asks Rs 64,800, Rs 50. The ground-floor Axis Bank branch pays Rs 149.32, twice an office, because a bank pays for the street.

Now divide. The priced lease, Rs 60 on Rs 12,104, earns Rs 720 a year per sq ft: 5.95 per cent, which its listing rounds to 6. An office bought at Rs 13,000 and let at Rs 82 would earn 7.6 per cent. At the portal's Rs 15,700 and a Rs 75 rent it would earn 5.7 per cent. So the yield here is about 6 to 7.6 per cent gross on a realistic purchase.

The bank unit that prints a yield without a price

A half-share of the Axis Bank branch, 953 of its 1,906 sq ft, is offered on a twelve-year lease with three years gone, at Rs 149.32 per sq ft, with a stated return of 4.25 per cent and no price. The arithmetic supplies one: 953 times Rs 149.32 is Rs 1.42 lakh a month, Rs 17.08 lakh a year, and at 4.25 per cent that is about Rs 4.02 crore, about Rs 42,200 per sq ft. That is more than three times an office upstairs. A bank tenant on a long lease is safe money, but at that price the buyer is paying for safety, not income. Ask for the price in writing before assuming it.

How to price a unit here

Price a let office from its rent: rent divided by yield. At Rs 60 and 6 per cent, an office is worth about Rs 12,000 per sq ft, which is the priced lease. At Rs 80 and 7 per cent it is about Rs 13,700. So the Rs 15,700 average only makes sense for a unit let at about Rs 90, which is above anything on the market. Compare Emaar Capital Tower on MG Road, which asks Rs 26,000 to Rs 30,500 but lets at Rs 140 to Rs 170 beside a metro station, and the corridor's other offices on the Golf Course Extension Road office page.

Registration and title

The occupation certificate came in December 2014 and handover began in 2015, before Haryana began registering projects in 2017, so no RERA number applies. The number some sites print, HRERA 660 of 2017, belongs to Emaar's Palm Drive Sky Terraces, the residential project behind it. A purchase rests on the registered conveyance deed, the occupation certificate and the lease in place. Units sold before 2018 carry Emaar MGF's name on their early papers, which is normal.

Where it sits in Sector 66

Palm Square is the shopping and office front of Emaar's Sector 66 estate. Emaar Palm Drive and Sky Terraces sit behind it, and their residents are much of the arcade's trade. The Sector 55-56 Rapid Metro station is about 4.5 km away, so this is a road-served building. The wider road is on the Golf Course Extension Road page, and Emaar's other projects on the Emaar India page.

Who this suits, and who should look elsewhere

An office here suits an investor who wants about 6 to 7.6 per cent gross for Rs 1.1 to Rs 4 crore, in a finished Emaar building with a residential catchment on its doorstep. It suits a small firm that wants to own a 1,000 sq ft office off Golf Course Extension Road. It does not suit a buyer who needs a metro station at the door, or one who pays the portal average for a unit whose rent supports Rs 12,000. The bank unit suits only a buyer who wants a bank's name on the lease and accepts about 4 per cent for it. More let stock is on the pre-leased property page.

Before you pay anything

1. Office or shop: a shop here costs two to three times an office per sq ft.
2. The lease: tenant, rent, end date, lock-in and deposit.
3. The arithmetic: rent times twelve over price, against 6 to 7.6 per cent.
4. For sale or to let: the 1,054 sq ft unit is listed to let.
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 Palm Square, Sector 66?

Priced office asks run about Rs 12,100 to Rs 13,000 per sq ft, and the portal average is about Rs 15,700. A 1,074 sq ft office let at Rs 60 asks Rs 1.30 crore, Rs 12,104 per sq ft, and a 3,000 sq ft furnished office asks Rs 3.90 crore, Rs 13,000. Emaar's own page starts at Rs 68.2 lakh, which is a from-price, not a rate.

What rent does an office in Emaar Palm Square earn?

About Rs 50 to Rs 84 per sq ft a month for offices. A 1,163 sq ft office asks Rs 88,000, about Rs 76; a 920 sq ft office Rs 75,000, about Rs 82; a 1,296 sq ft office Rs 64,800, Rs 50. A ground-floor bank branch pays about Rs 149, because a bank pays for the frontage.

What is the rental yield on a pre-leased office in Emaar Palm Square?

About 6 per cent on the priced lease. The 1,074 sq ft office let at Rs 60 earns Rs 7.73 lakh a year on Rs 1.30 crore, 5.95 per cent, as its listing says. An office bought at Rs 13,000 and let at Rs 82 would yield 7.6 per cent; at the Rs 15,700 portal average and a Rs 75 rent, 5.7 per cent.

Is Emaar Palm Square ready, and does it have a RERA number?

It is finished. Emaar MGF received the occupation certificate in December 2014 and handover began in 2015, before Haryana began registering projects in 2017, so no RERA number applies. The HRERA number some sites print against it belongs to Emaar's Palm Drive Sky Terraces, a residential project next door.

How big is Emaar Palm Square, and what is in it?

About 3,23,606 sq ft over three basements, ground and 14 floors on about 3.5 acres, with typical floors of about 18,860 sq ft. There is a two-level retail arcade and a food court at the base and offices above, with separate entrances. Office units run from about 900 to 1,600 sq ft, with some larger furnished floors.

Which companies are in Emaar Palm Square?

Tenants on the listings include RBL Bank, an Axis Bank branch on the ground floor, Amplus Solar, Long Stay Homes, WOW Spaces, Apex Lifecare and a number of technology firms. A lease is the only reliable record of who pays the rent on a unit you are buying, so ask for it.

Where is Emaar Palm Square and how far is the metro?

At the entrance to Emaar's Palm Drive, on Golf Course Extension Road in Sector 66, Gurugram. The Sector 55-56 Rapid Metro station is about 4.5 km away, so it is not a metro building; staff come by road. Sohna Road is close by.