SS Plaza Office for Sale, Sector 47 Gurgaon

SS Plaza is a small commercial block SS Group built on about one acre in Sector 47, off Sohna Road, with around 96 to 108 units: shops of about 250 to 400 sq ft, offices of about 550 to 1,000 sq ft and showrooms of up to about 1,700 sq ft. It is sold as an office address, and this page is titled that way because that is how people search for it. But the prices, the rents and the tenants all say the same thing: SS Plaza is priced and let as retail. Its units sell at about Rs 21,000 to Rs 45,000 per sq ft and let at Rs 110 to Rs 150 a month, two to three times what an ordinary office floor in the same sector earns. The office-labelled asks divide to about Rs 30,000 to Rs 35,000 per sq ft, and the yield on them is about 4.8 to 5.4 per cent.

The old version of this page printed Rs 15,000 to Rs 31,000 per sq ft. Both ends were too low. No unit in the listings read for this page is offered anywhere near Rs 15,000, and the pre-leased 1,691 sq ft unit that three of this site's one-unit pages describe is offered at Rs 45,000, which is Rs 7.61 crore, about Rs 2.37 crore above what the old ceiling implied.

At a glance

What sellers ask, divided by the area

Every priced unit found in the research for this page, from the dearest per sq ft to the cheapest:

• A 1,691 sq ft unit let to a bank on a 12-year lease, at Rs 45,000 per sq ft. That is Rs 7,60,95,000, and the listing prints a 4 per cent return, which means a rent of about Rs 150 per sq ft a month.
• A 1,604 sq ft semi-furnished unit at Rs 5.60 crore, let at Rs 140 a month. Rs 5.60 crore over 1,604 sq ft is Rs 34,900 per sq ft. One listing files it as an office and another as a shop, which says a lot about this building.
• A 1,400 sq ft ground-floor shop let at Rs 130, at Rs 31,200 per sq ft, about Rs 4.37 crore.
• An office of about 550 sq ft from Rs 1.65 crore, with stamp duty and floor charges extra. That is Rs 30,000 per sq ft.
• Units of 250 sq ft at Rs 65 lakh and 450 sq ft at Rs 1.17 crore, both Rs 26,000 per sq ft.
• A 2,102 sq ft shop let to Modern Bazaar at Rs 110, offered at Rs 21,120 per sq ft, Rs 4.44 crore, on a lease that started in September 2018.

So the building trades at about Rs 21,000 to Rs 45,000 per sq ft, and the units sold as offices sit at Rs 30,000 to Rs 35,000. One portal puts the whole project at Rs 65 lakh to Rs 4.68 crore, which matches the small units at the bottom and leaves out the bank unit at the top. The deciding document for any one unit is its lease: a bank on twelve years sells at the top, a large shop on an older lease sells at the bottom.

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

This site also carried three separate pages for a pre-leased office in SS Plaza, Sector 47, each of 1,691 sq ft and each printing price of call. All three name SS Plaza and Sector 47, so they belong to this building, and they now fold into this page. They are almost certainly one unit listed three times, and it is almost certainly not an office. The one 1,691 sq ft pre-leased unit on the market in SS Plaza is let to a bank on a 12-year lease, and 1,691 sq ft is the size the listings give for the building's largest showrooms.

That table is the whole case against pricing SS Plaza off an office rate. On the old band, the unit looked like a Rs 5 crore purchase at most. The seller wants Rs 7.61 crore for it, and the reason is the tenant, not the floor area.

The rent, and why it is so high

Office buildings in Sector 47 let at about Rs 45 to Rs 60 per sq ft a month, which is the figure this site prints on the Sector 47 office page. SS Plaza lets at two to three times that:

• A 560 sq ft semi-furnished office at Rs 75,000 a month, which is about Rs 134 per sq ft.
• The 1,604 sq ft unit at Rs 140, Rs 2,24,560 a month; another listing quotes Rs 2.25 to Rs 2.5 lakh for a unit of the same size.
• The 1,400 sq ft ground-floor shop at Rs 130.
• The Modern Bazaar shop at Rs 110, with a 10 per cent step-up after three years written into the lease.
• The bank unit at about Rs 150, implied by its price and its stated return.

These are shop rents. A small unit on a busy road earns them because a bank, a clinic, a grocer or a small branch office will pay for frontage and footfall. An office that needs a quiet floor and a lift lobby does not need to be here, and will not pay Rs 134 once it looks next door.

The yield, and how to price a unit here

Now divide. The bank unit returns 4 per cent. The 1,604 sq ft unit earns Rs 26.95 lakh a year against Rs 5.60 crore: 4.8 per cent. The 1,400 sq ft shop earns Rs 21.84 lakh against Rs 4.37 crore: 5.0 per cent. The 550 sq ft office at Rs 1.65 crore, if let at Rs 134, earns Rs 8.84 lakh: 5.4 per cent. Only the Modern Bazaar shop, at Rs 110 on Rs 21,120, reaches 6.25 per cent, and that is the one on the oldest lease.

Rent divided by yield gives the ceiling. At Rs 134 a month, one sq ft earns Rs 1,608 a year. At 5 per cent that is worth about Rs 32,200 per sq ft; at 6 per cent, about Rs 26,800; at 7 per cent, about Rs 23,000. So an office unit here at Rs 30,000 is a buyer accepting about 5.4 per cent. For comparison, offices in the Omaxe mall in neighbouring Sector 49 sell at about Rs 10,700 to Rs 12,200 per sq ft, as the Omaxe Gurgaon Mall office page shows, and the wider picture is on the Sohna Road office page. A buyer paying SS Plaza prices is paying for the retail rent and accepting a retail yield. Most searches for SS Plaza vs other Sohna Road offices come from someone who has just been quoted Rs 30,000 and seen Rs 11,000 next door; the difference is the rent, not the building.

That is a defensible trade if the tenant is a bank or a chain on a long lease. It is a poor one if the unit is empty. A vacant 550 sq ft office bought at Rs 30,000 per sq ft has to find a tenant willing to pay Rs 134 to earn even 5.4 per cent, and the office tenants in this sector are used to paying Rs 45 to Rs 60.

The building and the developer

SS Group is a Gurgaon developer whose housing includes The Leaf in Sector 85; its own site lists SS Plaza among its completed retail projects, and the SS Group builder page covers the rest. SS Plaza itself sits on about one acre. One portal counts 96 units and another 108, in one or two towers depending on the listing. The sizes the listings print fall into three groups: shops of about 303 to 408 sq ft, offices of about 550 to 1,000 sq ft, and showrooms of about 1,000 to 1,691 sq ft. There is an ATM, power backup and car parking.

Possession dates disagree. One portal gives December 2010; another gives a launch in March 2013 and possession from March 2017. The occupation certificate settles it, and a buyer should ask for it. Either date is before Haryana's registration regime took effect in mid-2017, which is why no RERA number circulates for SS Plaza.

Registration and title

There is no RERA number to check. A purchase rests on the registered conveyance deed in the seller's name, the chain back to SS Group, the occupation certificate and the lease in place. For a let unit the lease matters more than anything else on this list: it is the reason the price is Rs 45,000 rather than Rs 26,000.

Who this suits, and who should look elsewhere

Is SS Plaza a good investment? It is a good investment in a tenant and a poor one in floor area. It suits an investor who wants a small road-facing unit let to a bank or a chain on a long lease, and who accepts 4 to 5 per cent in return for that tenant. It suits a business that needs a shopfront or a walk-in office on Sohna Road and would rather own than rent. It does not suit anyone buying an office for yield: at Rs 30,000 to Rs 35,000 per sq ft the return is about 5 per cent, while offices in Sector 49 sell at a third of that price. It does not suit a company that needs more than about 1,700 sq ft in one unit. And it does not suit a buyer offered a vacant unit at a let unit's price. More let stock across the city is on the pre-leased property page, and ordinary office rents next door are on the Sector 49 office rent page.

Before you pay anything

1. What the unit is. Shop, office or showroom, on which floor, and whether its frontage is on the road. That decides the rent more than the size does.
2. The lease: tenant, start date, lock-in, step-up and months left. A bank on twelve years and a shop on a lease from 2018 are different assets.
3. The area basis. Divide the price by the super area on the deed.
4. The occupation certificate and the conveyance chain back to SS Group.
5. Maintenance, who pays it, and the no-dues letter from the building's management.

Frequently asked questions

What is the price of office space in SS Plaza, Sector 47?

The units sold as offices divide to about Rs 30,000 to Rs 35,000 per sq ft: a 550 sq ft office from Rs 1.65 crore, and a 1,604 sq ft semi-furnished unit at Rs 5.60 crore. The building as a whole trades at about Rs 21,000 to Rs 45,000 per sq ft, because most of it is shops and showrooms, and the old Rs 15,000 floor had no unit behind it.

What rent does a unit in SS Plaza earn?

Rs 110 to Rs 150 per sq ft a month on the listings. A 560 sq ft semi-furnished office lets at Rs 75,000, about Rs 134. A 1,604 sq ft unit is let at Rs 140, a ground-floor shop at Rs 130, a large shop to Modern Bazaar at Rs 110, and the bank unit at about Rs 150. Ordinary office floors elsewhere in Sector 47 let at Rs 45 to Rs 60.

What is the rental yield in SS Plaza?

About 4 to 5.4 per cent on current asks, and 6.25 per cent on one older shop lease. The bank unit returns 4 per cent at Rs 45,000 per sq ft, the 1,604 sq ft unit 4.8 per cent, a 1,400 sq ft shop 5.0 per cent and a 550 sq ft office at Rs 1.65 crore about 5.4 per cent if let at Rs 134. That is a retail yield, not an office one.

Is the 1,691 sq ft pre-leased unit in SS Plaza an office?

Almost certainly not. Three one-unit pages on this site called it a pre-leased office, but the 1,691 sq ft pre-leased unit on the market in SS Plaza is let to a bank on a 12-year lease and offered at Rs 45,000 per sq ft, about Rs 7.61 crore, at a 4 per cent return. The listings also give 1,691 sq ft as the size of the building's largest showrooms.

Why are SS Plaza prices so much higher than other Sohna Road offices?

Because its units are small, sit on a busy road and let to banks and shops at Rs 110 to Rs 150 a month. Offices in the Sector 49 mall sell at about Rs 10,700 to Rs 12,200 per sq ft on much lower rents. A buyer here pays for retail rent and gets a retail yield of about 4 to 5.4 per cent, which is only worth it with a strong tenant.

Does SS Plaza have a RERA number?

No. The listings date possession to December 2010 on one portal and March 2017 on another, and both fall before Haryana's registration rules took effect in mid-2017. A purchase rests on the registered conveyance deed, the chain back to SS Group, the occupation certificate and the lease. Ask for the occupation certificate: it settles the date the listings disagree about.

Who should buy in SS Plaza, and who should not?

Buy if you want a small road-facing unit let to a bank or a chain on a long lease and accept 4 to 5 per cent for that tenant, or if your own business needs a shopfront on Sohna Road. Look elsewhere if you are buying an office for yield, need more than about 1,700 sq ft, or are offered a vacant unit at a let unit's price.