Investors prefer single owned and managed commerical properties
Investors in India's commercial real estate market are increasingly preferring single-owned and managed properties over strata-owned ones as they offer higher returns, operational efficiency, and greater attractiveness, according to experts. The rental yields for commercial assets across key property markets have been a major indicator that clearly shows that single-owned commercial properties are outperforming their strata counterparts that have multiple owners and operators. This streamlined approach, according to experts, ensures that properties are well-maintained and can quickly adapt to market demands or tenant needs. In contrast, strata properties often face management challenges due to multiple owners, leading to delays in maintenance and decision-making processes. Occupiers are increasingly leaning towards single-owned properties due to the consistent and reliable building management they offer. Single ownership ensures that the property is managed with a unified vision, which translates to better maintenance and faster resolution of issues. A single-owner can implement upgrades and market the property with a clear and consistent strategy, directly impacting the property’s market value positively. Investors are also recognising the benefits of single- owned properties, including higher returns and better value retention. The operational efficiency and higher tenant satisfaction associated with single ownership make these properties a more attractive investment. Occupiers, on the other hand, prefer the reliability and consistency of single-owned properties, which translates to a better overall experience.
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