The Difference between Residential Sales and Office Space Leasing Transactions in Gurgaon
Real estate in Gurugram or in any other city of the country is a tough game. The nature of the line is a little rough and not fully mature in respect to other countries in the world. However, things are changing for the better what with RERA on the cards, the emergence of REITS in the offing and a more mature market both on seller and buyer sides. Also, innovation from India's emerging new middle class is to watch for as disposable incomes rise and entrepreneurial talent comes to the fore.
Dealing with residential acquisition class of buyers visa-vi prospective office tenants is an altogether different ball game.
I thought I'd outline the key differences between residential sales and office space leasing transactions in Gurgaon in my understanding so far.
1) Residential sales transactions are based on a sense of comfort whereas office leasing transactions are based on commercials largely
2) Residential sales transactions involve the opinions and decisions of fewer decision makers whereas in office transactions there are usually multiple layers of decision makers particularly in the larger firms
3) Residential sale transactions involve relatively fewer array of options at the time of viewing and shortlisting visa via office leasing transactions
4) Often in office leasing transactions negotiations are held with multiple parties whereas on that count the residential buyer is more tuned into what he/she wants
5) In Office Leasing transaction decisions revolving around space take up are a longer and more detailed process than residential sale transactions
6) Negotiations are more cut-throat in office leasing transactions and multi-issued
7) Deal maturation in office leasing transactions is usually much longer than in residential sales along with more extensive paper-work and follow-ups as a result.
They are both are subject to internal / external factors although the expression is manifest in different forms. From the above it would seem that office leasing transactions are tougher to conclude than residential sales (as also residential rentals) and that has been my experience. One last sum-up difference is the network one engages with is somewhat different.
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