DLF South Point Mall Shop for Sale, Golf Course Rd Gurgaon

DLF South Point Mall sits on Golf Course Road in Sector 53, in DLF Phase 5, beside the Sector 53-54 Rapid Metro station. It was built as the neighbourhood mall for the DLF 5 towers around it, the Aralias, the Magnolias, Park Place and the Belaire, and it trades with a supermarket, fashion and lifestyle shops, cafes and a food court, with a few floors of offices above. Units are owned one by one, so shops and offices come up for resale, many of them already let.

The row this page replaces printed about Rs 45,000 per sq ft for retail and about Rs 25,000 for offices. Those are the top of the asks, not the middle. Priced listings put shops at about Rs 31,000 to Rs 45,000 per sq ft and offices at about Rs 15,000 to Rs 25,000, and let shops change hands at gross yields of about 4 to 6 per cent.

What sellers ask, divided by the area

Every rate below is the printed price divided by the printed area. Where a listing printed a yield instead of a price, the price is worked back from the rent.

• A 600 sq ft shop at Rs 2.7 crore: Rs 2,70,00,000 over 600 is Rs 45,000 per sq ft. This is the one shop ask with both a price and an area, and it is the old row's retail figure.
• A 2,000 sq ft unit let to an international brand, priced at Rs 31,200 per sq ft, which is Rs 6.24 crore, with rent of Rs 156 a month.
• An 1,800 sq ft unit let to a multinational at Rs 2,48,400 a month on a nine-year lease with a three-year lock-in, four months' deposit, 15 per cent escalation and a printed 4.25 per cent return. No price was printed. Rs 2,48,400 times 12 is Rs 29,80,800 a year; over 0.0425 that is about Rs 7.01 crore, or about Rs 38,960 per sq ft.
• An 895 sq ft unit let to a bakery at Rs 90 a month on a 3+3+3 lease with three months' deposit, at a printed 6 per cent. Rs 90 times 895 is Rs 80,550 a month, Rs 9,66,600 a year; over 0.06 that is about Rs 1.61 crore, or Rs 18,000 per sq ft. A Rs 90 rent says this is not a ground-floor frontage.

For offices:

• A furnished 1,262 sq ft office at Rs 1.90 crore: Rs 1,90,00,000 over 1,262 is Rs 15,055 per sq ft.
• An unfurnished 1,262 sq ft office on the lower ground floor at Rs 2.2 crore: Rs 17,433 per sq ft. The same plan size at two prices is almost certainly two units, or one unit re-listed; either way the gap is the room to negotiate.
• A 3,300 sq ft office at Rs 25,000 per sq ft, which is Rs 8.25 crore. It is the old row's office figure and the top of the range.

The one-unit page that now folds into this one

This site also carried a separate page for a pre-rented property in the mall. It was filed under a residential address, labelled as a fresh launch although the mall has traded for years, and printed a band of about Rs 3.6 crore to Rs 5.1 crore marked as an estimate, with no area and no rent. It now folds into this page.

The old band is not impossible, but it is not a price. At Rs 31,200 per sq ft, Rs 3.6 crore buys about 1,154 sq ft of let retail and Rs 5.1 crore about 1,635 sq ft; at Rs 45,000 it is 800 to 1,133 sq ft. Without an area and a lease, a buyer cannot tell whether a given unit in that band is cheap or dear.

The rent, and the yield it produces

Let units on the sale market earn about Rs 90 to Rs 156 per sq ft a month. Now divide:

• The international-brand unit: Rs 156 times 12 is Rs 1,872 a year; over Rs 31,200 that is 6.0 per cent, which matches its printed return.
• The multinational unit: Rs 2,48,400 over 1,800 sq ft is Rs 138 a month. Its printed 4.25 per cent can only be true at a price near Rs 7 crore; a buyer who is quoted more is being quoted a lower yield than the listing says.
• The bakery unit: 6 per cent at Rs 90 only holds at about Rs 18,000 per sq ft. Paying the headline Rs 45,000 for that rent would return 2.4 per cent.

The mall's leasing market also shows a ground-floor, double-height 405 sq ft unit at Rs 5 lakh a month, about Rs 1,235 per sq ft. That is what a flagship frontage commands from a jewellery or premium brand, and it sits on its own rent page for South Point Mall. It is not a rent a bought shop at Rs 45,000 will earn: at that rent the yield would be over 30 per cent, which no seller would accept. Treat the let listings, at Rs 90 to Rs 156, as the guide. Maintenance charges for the mall could not be established from any listing; ask for the last year's bill and who pays it under the lease.

Size, parking and the numbers that do not agree

The total area and unit count are the least settled numbers here. One portal gives the site as 6.4 acres with 92 units, in listed sizes from about 300 to 2,500 sq ft. A broker project page gives a lettable area of about 27,870 square metres, which is 27,870 times 10.764, about 3,00,000 sq ft. Ninety-two units over three lakh sq ft would average about 3,260 sq ft, larger than any unit on sale, so one of the two counts leaves something out, probably the anchor and food-court floors. The developer's own page says the mall holds over 70 lifestyle brands; a city store directory counts over 120 stores, including cafes, salons and kiosks. The approved building plan and the mall's current directory settle both. One project page gives parking for about 620 cars in a paid multi-level park.

How it compares

On Golf Course Extension Road, ground-floor shops in M3M 65th Avenue ask about Rs 35,000 to Rs 45,000 per sq ft, the same band, in a newer building with a thinner catchment. On MG Road, MGF Metropolitan Mall offers shops from about Rs 25,000. South Point's offices at Rs 15,000 to Rs 25,000 sit against Ocus Technopolis in Sector 54 at about Rs 16,500 to Rs 18,000. The road's other office buildings are on the Golf Course Road office page, and more let shops are on the pre-leased property page and the retail shops page.

Who this suits, and who should look elsewhere

It suits an investor who wants a let shop in an established mall with a rich catchment, DLF Phase 5 and Sectors 55 and 56 on one side and offices on the other, and who is content with 4 to 6 per cent gross. It suits an occupier who wants a small office beside a metro station for under Rs 2 crore. It does not suit a buyer who expects the 7 to 9 per cent that older office buildings on Sohna Road print, a buyer who will pay the headline Rs 45,000 for an inner unit, or one who needs capital growth from a new building.

Before you pay anything

1. The title: a registered conveyance deed in the seller's name, and a charge search.
2. The area: carpet and super area in writing; one let unit in this mall has a 50 per cent loading.
3. The lease: tenant, rent, lock-in, deposit and escalation, and how much of the lock-in is left.
4. Maintenance: the last year's bill and whether landlord or tenant pays it.
5. The arithmetic: rent times twelve over price. If it does not match the printed return, the price is wrong or the rent is.

Frequently asked questions

What is the price of a shop in DLF South Point Mall?

About Rs 31,000 to Rs 45,000 per sq ft for shops that are let or sit on good frontage. A 600 sq ft shop asks Rs 2.7 crore, which is Rs 45,000 per sq ft, and a 2,000 sq ft unit let to an international brand is priced at Rs 31,200 per sq ft, about Rs 6.24 crore. A bakery unit let at Rs 90 a month would be worth about Rs 18,000 per sq ft at the 6 per cent its listing prints, so upper and inner units sit well below the headline.

What does office space cost in DLF South Point Mall?

About Rs 15,000 to Rs 25,000 per sq ft. A furnished 1,262 sq ft office asks Rs 1.90 crore, Rs 15,055 per sq ft; an unfurnished 1,262 sq ft office on the lower ground floor asks Rs 2.2 crore, Rs 17,433; and a 3,300 sq ft office is offered at Rs 25,000 per sq ft, which is Rs 8.25 crore.

What rental yield does a pre-leased shop in South Point Mall give?

About 4 to 6 per cent gross. The international-brand unit earns Rs 156 per sq ft a month on a Rs 31,200 price, and Rs 156 times 12 over Rs 31,200 is 6.0 per cent, which matches its listing. An 1,800 sq ft unit let to a multinational at Rs 2,48,400 a month is sold at a printed 4.25 per cent, which puts its price near Rs 7 crore, or about Rs 38,960 per sq ft.

What is the shop rent in South Point Mall?

It ranges widely. Let units on the sale market earn about Rs 90 to Rs 156 per sq ft a month. A ground-floor, double-height 405 sq ft unit is offered to let at Rs 5 lakh a month, about Rs 1,235 per sq ft, which is a flagship frontage and not a guide to what a bought unit will earn.

Is DLF South Point Mall RERA registered?

No registration number was found, and none is expected: the mall was built and trading before Haryana began registering projects in 2017. It already appears in DLF's 2016-17 annual report. A purchase rests on the seller's conveyance deed, the occupation certificate and any lease in place.

How far is South Point Mall from the metro?

The nearest station is Sector 53-54 on the Rapid Metro, on Golf Course Road beside the mall, about a three-minute walk, and the Rapid Metro connects to the Yellow Line at Sikanderpur.

How big is DLF South Point Mall, and how many shops does it have?

One portal gives 6.4 acres and 92 units; a broker project page gives a lettable area of about 27,870 square metres, which is about 3,00,000 sq ft. The developer's own page speaks of over 70 lifestyle brands, while a city store directory counts over 120 stores. The figures do not reconcile, and the mall's approved building plan and current directory settle them.