M3M Urbana Office for Sale, Sector 67 Gurgaon

Office space for sale in M3M Urbana Sector 67 Gurgaon is quoted at about Rs 11,000 to Rs 13,100 per sq ft. That is a price, not an investment case. The investment case needs a second number, and this is one of the few buildings where you can get it without asking anybody.

The same office stock lets at Rs 60 to Rs 90 per sq ft a month. Twelve months of that is Rs 720 to Rs 1,080 per sq ft a year. Put the two together and the gross yield on this building is not a projection, it is arithmetic.

The sum, printed

That spread is the entire investment case. The same building, on the same day, is a poor commercial buy and a strong one depending on which unit you are shown and what rent it actually commands. A building-level yield figure in an advertisement describes neither end of it.

And all three are gross. Maintenance, vacancy between tenants, property tax and income tax all come out before you see any of it. A 5.5 per cent gross on a strata office is not a commercial return once those are paid.

The number to throw away

One large listing site quotes this development at Rs 67.40 lakh to Rs 2.36 crore on sizes of 238 to 833 sq ft. Do the division: 67,40,000 over 238 is about Rs 28,320 a foot, and 2,36,00,000 over 833 is about Rs 28,330. Both land in the same place, so it is a consistent price list — just not for the thing you are buying.

Rs 28,300 per sq ft is more than double every other quote for office space in this building. A number that consistent and that far out is retail stock, or a carpet-area price, sitting in the same list as office super-area prices. M3M Urbana has retail at the base of both towers, so both explanations are live. Ask the seller which basis a quote is on before you compare it with anything, because this is the single easiest way to get this building wrong.

Vacant or pre-leased

Pre-leased floors to about 4,500 sq ft trade here separately from vacant units, and they carry a premium paid for certainty. That premium is only worth it if the lease deed says what the listing says.

Read the deed for five things: who the tenant actually is, the rent actually being paid rather than the headline, the escalation clause, how much lock-in remains, and where the security deposit sits on transfer. A pre-leased unit whose tenant can leave in seven months is a vacant unit with extra steps.

What the small ticket means

Units start around 500 sq ft, which at Rs 11,000 to Rs 13,100 a foot is roughly Rs 55 to Rs 66 lakh before stamp duty and registration. That is a low entry for Grade A commercial and it is most of why this building fills with individual investors rather than funds.

It is also, on a per-foot basis, among the cheapest ways into Grade A commercial on this corridor — the cheapest office entry in a 2021 building here is a 500 sq ft unit, not a share of a floor in something older.

It cuts both ways. It is how you get in; it is also how you get out, because resale means finding one buyer for one unit rather than a fund taking a floor. Price that illiquidity into the yield you are willing to accept.

What to verify before you buy

• Carpet against super area on the specific unit, in writing.
• The occupation certificate and the conveyance chain on that unit.
• Maintenance dues outstanding — they pass to you.
• The lease deed in full, if it is pre-leased.
• The unit's own rent, from the deed or from comparable units on its own floor — not the building's advertised yield.

Our view

This is a building where the arithmetic is available and almost nobody does it. Buy the unit whose own price and own rent put it at the good end of that table, and treat the advertised yield as marketing. If the unit you are offered only works at Rs 90 a month and the floor it sits on is letting at Rs 65, the deal is not there — whatever the building is doing on average.

The letting side of the same stock, with what tenants actually pay and why the range is so wide, is on office space for rent in M3M Urbana Business Park. For the corridor around it, see office space for sale on Golf Course Extension Road, and for the dearer alternative a corridor north, office space on Golf Course Road.

Frequently asked questions

What is the price of office space in M3M Urbana Sector 67 Gurgaon?

About Rs 11,000 to Rs 13,100 per sq ft for office units. Retail in the same development asks more, which is the main reason quotes for this building vary so much. Treat any figure far above that band as a retail or carpet-area price until the seller shows you which it is.

What yield does that actually give?

Do the sum on the same building. Units here let at Rs 60 to Rs 90 per sq ft a month, which is Rs 720 to Rs 1,080 a year. Rs 720 on Rs 13,100 is about 5.5 per cent gross; Rs 1,080 on Rs 11,000 is about 9.8 per cent. The middle of both ranges — about Rs 900 on about Rs 12,000 — is about 7.5 per cent gross. Every one of those is before maintenance, vacancy, property tax and income tax, so net is materially lower.

Why do some listings show Rs 67.40 lakh to Rs 2.36 crore?

Because that is about Rs 28,300 per sq ft on the 238 to 833 sq ft sizes quoted with it — 67,40,000 divided by 238, and 2,36,00,000 divided by 833, both land there. More than double every other quote for this building, which means it is retail stock or a carpet-area price sitting in the same list as office super-area prices. It is the single easiest way to get this building wrong.

Is a pre-leased unit here worth the premium?

Only if the lease deed says what the listing says. Pre-leased floors to about 4,500 sq ft trade here separately from vacant stock, and the premium is paid for certainty of rent. Check the tenant's identity, the rent actually being paid, the escalation, the remaining lock-in and the deposit position in the deed — not the brochure.

What is the smallest ticket to buy in here?

About 500 sq ft, which at Rs 11,000 to Rs 13,100 per sq ft is roughly Rs 55 to Rs 66 lakh before stamp duty and registration. That small entry is unusual for Grade A commercial and is most of why this building attracts individual investors rather than funds.

What should I verify before buying here?

The carpet area against the super area on the specific unit, the occupation certificate, the conveyance chain, the maintenance dues position, and — if pre-leased — the lease deed in full. Then price the unit off its own rent rather than off the building's advertised yield.