MGF Megacity Mall Office for Sale, MG Road Gurgaon

MGF Megacity Mall is one of three malls the MGF group built on the Mehrauli-Gurgaon road, MG Road. It stands on about 3 acres, with about 4,00,000 sq ft built and about 2,00,000 sq ft saleable by the developer's own page, and it is described as walking distance from Sikanderpur, where the Yellow Line meets the Rapid Metro. Most listings place it in Sector 28; one pre-rented listing says Sector 25. Its units are owned by individual buyers, and a coworking operator runs a centre in the building.

The row this page replaces printed about Rs 15,000 to Rs 20,000 per sq ft for offices. No office with a published price was found in four searches. What was found is one priced shop, one unpriced let office and two rents, and that is enough to test the old band.

What is actually on offer

• A ground-floor shop of 855 sq ft at Rs 1.71 crore: Rs 1,71,00,000 over 855 is Rs 20,000 per sq ft.
• A pre-rented office of 1,937 sq ft for sale, with no price or rent in the text found.
• An unfurnished 816 sq ft first-floor office to let at Rs 65 a sq ft a month: 816 times 65 is Rs 53,040 a month.
• An 875 sq ft office to let at Rs 87,500 a month: Rs 87,500 over 875 is Rs 100 per sq ft.

Ground-floor shops in a mall sell well above upper-floor offices, because their rent is higher. So Rs 20,000 is the ceiling for an office here, not a guide. The old band's top matches that shop rate, which suggests it was built from retail figures.

Testing the old band against the rent

The arithmetic: Rs 65 times 12 is Rs 780 a year; over Rs 15,000 that is 5.2 per cent, over Rs 20,000 it is 3.9 per cent. Rs 100 times 12 is Rs 1,200, which is 8.0 and 6.0 per cent. The pre-rented 1,937 sq ft office would earn Rs 1,25,905 a month at Rs 65 and Rs 1,93,700 at Rs 100. Brokers say pre-rented Gurgaon offices return 5 to 10 per cent, a general range, not a figure for this mall.

For the yield to reach 7 per cent on a Rs 65 rent, the price would have to be about Rs 11,100 per sq ft (Rs 780 over 0.07). For Rs 100 rent, about Rs 17,100. So a buyer of an unfurnished office letting near Rs 65 should not pay Rs 15,000 to Rs 20,000, and a buyer of a furnished one letting near Rs 100 has more room. There is no published price for an office here; ask the seller for one in writing, then divide.

The developer and the building

The mall is MGF's, and the developer's own page describes it on its own, which few MG Road buildings have. MGF's mall management arm runs it. The built and saleable totals differ by half because basements, parking and plant are never sold; that ratio says nothing about the carpet-to-super loading on a single unit, so ask for both areas on your unit separately.

A coworking operator runs a centre here, which keeps the office floors occupied and gives a small firm a way in without a lease. For an owner it is also competition: a small tenant can take a cabin upstairs instead of your unit.

The metro: the mall's best point

Megacity is described as walking distance from Sikanderpur, the interchange where the Delhi Metro Yellow Line meets the Rapid Metro. From there Cyber City and Golf Course Road are reachable without leaving the network. The two other MGF malls sit by MG Road station, which is on the Yellow Line only. For a landlord trying to let a small office, that is a real advantage, and it is not in the price of anything found.

How it compares on MG Road

Megacity lets for less than its two MGF siblings, so it should sell for less. A buyer who pays Metropolis prices for a Megacity office pays for a rent the unit may not earn. Leasing detail is on the MGF Megacity Mall rent page; the road as a whole is on the MG Road office page and the MG Road real estate guide, and let stock on the pre-leased property page.

Who this suits, and who should look elsewhere

It suits a buyer who wants a small office by Sikanderpur metro, will get a written price and work the yield out, and pays about Rs 11,000 to Rs 17,000 depending on the rent the unit can prove. It does not suit a buyer who wants a published price before calling, one who counts a shop rate as an office rate, or one who confuses this mall with Metropolis or Metropolitan.

Before you pay anything

1. The mall's name and sector on the deed: Megacity, not Metropolis or Metropolitan; Sector 28 or 25.
2. The price in writing, then rent times twelve over price.
3. The title: a registered deed in the seller's name, and a charge search.
4. The lease, if let: tenant, rent, lock-in, deposit and escalation.
5. Maintenance: not published; get the latest bills.
6. Area: carpet and super, separately.
7. Stamp duty: 7 per cent for a man, 5 per cent for a woman and 6 per cent jointly in Gurugram, plus registration.

Frequently asked questions

What is the price of office space in MGF Megacity Mall?

No office in the mall with a published price was found. A pre-rented 1,937 sq ft office is offered for sale without a price in the text found, and a ground-floor shop of 855 sq ft asks Rs 1.71 crore, which is Rs 20,000 per sq ft. Upper-floor offices usually sell below ground-floor shops, so Rs 20,000 is a ceiling for an office here, not a guide.

Is the old band of Rs 15,000 to Rs 20,000 per sq ft right for MGF Megacity Mall?

It could not be confirmed or ruled out. The top matches the one priced shop, which suggests offices sell lower. At the Rs 65 rent found for an unfurnished office, Rs 15,000 would yield 5.2 per cent gross and Rs 20,000 only 3.9 per cent, which is thin for a mall office.

What rent does an office in MGF Megacity Mall earn?

About Rs 65 to Rs 100 per sq ft a month. An unfurnished 816 sq ft first-floor office asks Rs 65, about Rs 53,000 a month, and an 875 sq ft office asks Rs 87,500 a month, which is Rs 100. Maintenance is not published.

What rental yield can a buyer expect in MGF Megacity Mall?

At Rs 65 a month, 5.2 per cent gross on Rs 15,000 and 3.9 per cent on Rs 20,000. At Rs 100, 8.0 and 6.0 per cent. Brokers quote 5 to 10 per cent for pre-rented Gurgaon offices in general, but no let unit here with both a price and a rent was found.

Which sector is MGF Megacity Mall in?

Listings disagree: most, including a broker and one portal, put it in Sector 28, and a pre-rented listing says Sector 25. It is on the Mehrauli-Gurgaon road and is described as walking distance from Sikanderpur metro. Check the sector and unit number on the sale deed.

How big is MGF Megacity Mall?

About 3 acres, with about 4,00,000 sq ft built and about 2,00,000 sq ft saleable on the developer's own page. The gap is basements, parking and plant, not a loading on your unit; ask for your own carpet and super area separately.

Is MGF Megacity Mall the same as MGF Metropolis or MGF Metropolitan?

No. MGF built three malls on MG Road with similar names. Metropolis offices ask about Rs 20,500 to Rs 24,000 per sq ft and Metropolitan shops from about Rs 25,000, both higher than anything priced at Megacity. Confirm the mall's name on the deed, not the listing heading.