Welldone Tech Park Office for Sale, Sector 48 Gurgaon

Office space for sale in Welldone Tech Park Sector 48 Gurgaon is listed under two names — Welldone Tech Park and Galaxy Welldone Tech Park — and as an investment it turns on one calculation nobody in the listings does for you: the asking price divided by the area.

Office space in Welldone Tech Park, Sector 48, resells at about Rs 7,100 to Rs 8,800 per sq ft — below the Rs 9,000 to Rs 13,000 this page used to carry. Two live resale listings set the band: about Rs 1.75 crore on 2,455 sq ft, which is Rs 7,128 per sq ft, and about Rs 2.27 crore on 2,580 sq ft, which is Rs 8,798. Both are strata units, which is what trades in this building.

Against rent of about Rs 55 per sq ft a month, those prices give a gross yield of 7.5 to 9.3 per cent. That is two to three points above the Gurgaon commercial norm, and the gap is the whole story of this asset.

The arithmetic, in full

Maintenance does not come off the owner's yield here, because the occupier pays it. What does come off is every month the floor is empty, and that is the risk the extra two or three points are paying you for.

Why a high yield is a question, not a bargain

An Indian commercial asset yielding nine per cent is telling you something. Three things are priced into this one.

The building is from 2010. Sixteen years of lifts, chillers and common areas, in a market where the tenant a landlord wants is comparing this against buildings finished last year. Capital expenditure on a strata unit is yours alone; capital expenditure on the common areas depends on every other owner agreeing to it.

The corridor has no rail. Sohna Road has never had a metro station, and staff arrive through Subhash Chowk. That has not stopped Candor TechSpace filling 24.74 acres with Aricent, AON, Cognizant, Colt, Evalueserve and Genpact, but it does mean the tenant pool for a 2,500 sq ft strata floor is thinner than it looks, because the corporates that anchor the corridor are not in the market for one.

The title is strata. You are buying a unit in a building with many owners, not a building. The maintenance standard, the lobby, the parking discipline and the lift reliability are collective decisions you have a small vote in. That is the structural difference between this and a whole-asset purchase, and it is why institutional buyers are not competing with you for it.

Pre-leased against vacant

The difference is most of the price, and the two should never be quoted as one band. A pre-leased unit with a tenant and years of lock-in left behaves like a bond: the yield is the return and the covenant is the risk. A vacant floor is a re-letting exercise, and on this corridor you should underwrite a void of several months and a fit-out contribution on top.

Ask for five documents before you agree a price: the lease deed, the rent escalation clause, the lock-in remaining, the security deposit held, and the maintenance dues position on the unit. On a strata purchase the last one catches people out — arrears attach to the unit, and you inherit them.

What else your money buys

Three times the price on Golf Course Road buys two points less yield and a materially easier re-let. Which of those you want is the decision; there is no version of this where the cheap one is also the safe one.

Our view

This is an income asset for a buyer who has read the lease, not a capital-growth asset. At Rs 7,100 to Rs 8,800 per sq ft with a tenant in place and real term remaining, the return is genuinely good and the arithmetic is simple. Bought vacant, on the assumption that a 2,500 sq ft floor in a 2010 strata building on a corridor with no rail will let itself, it is a different proposition entirely — and that is the version most often sold.

In short: Buy the lease, not the building. Pre-leased with term remaining, the 7.5 to 9.3 per cent is real; vacant, underwrite the void first.

The rest of the corridor is on our office space on Sohna Road page, and it is worth reading beside this one: a strata floor is only as good as the rent the road can command, and that is where the rent comes from.

Frequently asked questions

What does office space cost to buy in Welldone Tech Park Sector 48 Gurgaon?

Two live resale listings settle it better than any average: about Rs 1.75 crore on 2,455 sq ft and about Rs 2.27 crore on 2,580 sq ft. Divide and those are Rs 7,128 and Rs 8,798 per sq ft. Call the band Rs 7,100 to Rs 8,800 per sq ft, and treat anything quoted above Rs 9,000 as an asking price rather than a market one.

What yield does that give?

Rent here is about Rs 55 per sq ft a month, which is Rs 660 a year. Against Rs 7,128 per sq ft that is 9.3 per cent gross; against Rs 8,798 it is 7.5 per cent. Maintenance of about Rs 20 per sq ft is the occupier's, not the owner's, so it does not come off that figure. A band of 7.5 to 9.3 per cent is well above the 6 to 7 per cent Gurgaon commercial norm, and that gap is the market pricing risk rather than offering a bargain.

Why is the yield so high here?

Because the buyer is paid to take three things: a 2010 building rather than a new one, a corridor with no rail and a history of vacancy, and a strata title where the common areas depend on many owners paying their share. A high rental yield on an Indian commercial asset is almost always the answer to a question about re-letting rather than a free lunch, and that is exactly what makes it risky. Ask how long the current tenant has left and what the floor let for before them.

Is it sold pre-leased or vacant?

Both, and the difference is most of the price. A pre-leased unit with a tenant in place and years left to run is a bond; a vacant floor on this corridor is a re-letting exercise with a void to fund. Ask for the lease deed, the escalation clause, the lock-in remaining and the security deposit held, and price the two cases separately.

Can you buy a whole floor here, or only part of one?

Part of one, in practice. This is a strata-titled building — strata meaning the floors were sold off to separate owners rather than the block being held whole — and the units that trade are roughly 2,000 to 3,600 sq ft. That is why it appears on the resale market at all: the institutionally owned campuses on the same road, Candor TechSpace and Capital Business Park, are not sold floor by floor to private buyers.

How does buying here compare with buying on Golf Course Road?

You pay roughly a third as much per sq ft and you take the risk that goes with it. Grade A stock on Golf Course Road trades nearer Rs 18,000 to Rs 24,000 per sq ft on a 6.5 to 7.25 per cent yield, with rail within walking distance and a tenant pool that does not thin out. Here the entry is Rs 7,100 to Rs 8,800 and the yield is two points higher because the re-letting question is harder. Sohna Road vs Golf Course Road is the whole investment decision on this asset: cheaper and higher-yielding, against dearer and easier to re-let.