Pre-Leased Properties in Mumbai

As many know this is the ideal choice for investors as buy a commercial property that is already generating cash flow, can’t beat it!  

Jagaha now has over 150 commercial properties in Mumbai, Thane & Navi Mumbai direct. Before contacting Jagaha.com, a few things to know about pre-leased properties in the Mumbai market. 

The stated ROI (return on Investment) on these will likely always be higher given that the actual transaction prices is almost lower than the listed price. And a lower sale price with the same rent coming in leads to a higher ROI or rental yield. 

This is very important to know because many act like these rental yields are static, but they are certainly not the case given the denominator to the equation will almost always be less creating a higher yield – makes sense? 

Example: a commercial property in Navi Mumbai listed at 1,000 rupees for sale, rent is 5 rupees per month so for 12 months that’s 60 rupees…. 60 Rupees/1,000 Rupees = 6% rental yield. But likely negotiation will happen, so let’s say property gets negotiated down 15% from the listed price which is very normal in Mumbai and the deal gets closed at 15% less which is 850 Rupees as the actual sale price. Pending no other moving parts, the transaction value has been agreed at 850 and with that said the actual rental yield now? 60Rupees/850Rupees = 7.06% 

Is 6% to 7% really that big?

For investors, it’s HUGE. This could be the difference between a deal getting done or not. Not to mention that Jagaha’s team has negotiated for our clients far more than 15% lower than the initial listed price.

Please do email us at [email protected] or go to Jagaha.com and inquire directly and Jagaha’s commercial real estate agent team will reach out to you.